Daily Investment Strategy
Daily focus：Hengrui Pharma（1276）
Hengrui Pharma is a leading innovative drug research and development company in China. Currently, the company has 23 innovative drugs on the market, while its pipeline includes over 90 new molecular entities in clinical and late-stage development, among which about 30 innovative drugs are in critical clinical phases. Under the company’s active transformation, revenues from innovative drugs accounted for more than half of total drug sales in 2024. While continuously investing in innovative drug R&D, Hengrui also supports enterprise profitability and provides space for new drug development through a portfolio of over 110 commercialized drugs. As of the end of 2024, 68 generic drugs and 15 innovative drugs had been included in the medical insurance drug formulary, providing income sources for the company. With a rich drug pipeline and favorable new policies accelerating the launch and use of innovative drugs, Hengrui is poised to sustain its growth momentum.
President Trump announced a 35% tariff policy on Canada
President Trump announced a 35% tariff policy on Canada, which will take effect on August 1. Continued market concerns over Trump's tariff policies have heightened investor uncertainty, pushing the 10-year U.S. Treasury yield up to 4.4%, reflecting worries about inflationary pressure. The Federal Reserve meeting minutes indicated that most officials believe tariffs could have a more persistent impact on inflation, but they still expect interest rate cuts in 2025, although the timing of the cuts may be delayed until September.
Additionally, U.S. Secretary of State Rubio and Chinese Foreign Minister Wang Yi met in Kuala Lumpur on July 11. Both sides described the talks as "positive, pragmatic, and constructive." Rubio said there is a high probability that Trump will meet with Xi Jinping this year, and both sides hope to achieve this goal.
On Friday, the Hong Kong Stock Connect recorded a net inflow of HKD 1.7 billion, with Meituan (3690) seeing the largest net inflow of HKD 715 million, followed by Ping An Insurance (2318). Xiaomi Group (1810) recorded the largest net outflow of HKD 738 million, followed by Pop Mart (9992).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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