Morgan Stanley has issued a research report expressing an optimistic outlook for China's pharma industry in light of a series of favorable domestic policies like comprehensive support for innovation.In addition, most Chinese pharma companies have low reliance on exports to the US, making the sector relatively less vulnerable to geopolitical tensions and uncertainties in US drug pricing.While legacy drugs will continue to weigh on the short-term growth of many companies and make only minimal contribution, Morgan Stanley pointed out that their gradual exit can make investors reassess the value and catalysts of companies' product pipelines.Morgan Stanley raised its target price for HANSOH PHARMA (03692.HK) +0.500 (+2.012%) Short selling $49.19M; Ratio 32.558% from HKD25 to HKD29 and kept the Overweight rating unchanged due to its high-quality product portfolio and robust growth prospects.The target price for SINO BIOPHARM (01177.HK) +0.030 (+0.718%) Short selling $47.71M; Ratio 34.515% was lifted from HKD4.6 to HKD4.9 with an Overweight rating maintained because of its industry-leading growth and a wealth of catalysts expected this year.The broker also added its target price for CSPC PHARMA (01093.HK) +0.250 (+3.968%) Short selling $277.80M; Ratio 31.710% from HKD6.7 to HKD6.8 as its pipeline was undervalued. It gave the company an Overweight rating.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-21 12:25.)