The Chinese biotech industry entered a phase of accelerated growth, with companies expanding their innovative commercial product portfolios, nailing major out-licensing deals, and exceeding expected profitability, UOB Kay Hian's research report said.

Ongoing policy support and globalization efforts will further foster the industry's expansion, the broker suggested, believing that the industry will continue to execute well and is expected to deliver sustainable growth in the coming years, upgrading the industry's rating to Overweight.

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UOB Kay Hian emphasized that INNOVENT BIO (01801.HK)  -0.750 (-0.956%)    Short selling $141.07M; Ratio 8.502%   , HANSOH PHARMA (03692.HK)  +0.250 (+0.901%)    Short selling $118.32M; Ratio 32.930%   and SINO BIOPHARM (01177.HK)  +0.140 (+2.887%)    Short selling $146.22M; Ratio 27.262%   are its top picks.

The global biopharmaceutical market sized USD1.089 trillion in 2023, approximately 10 times the domestic market. In light of the humungous opportunities in the global market, Chinese companies are ambitiously pursuing international expansion through differentiated strategies.

BEIGENE (06160.HK)  +1.100 (+0.745%)    Short selling $220.09M; Ratio 22.348%   , having established a fully integrated global platform, launched two innovative therapies overseas. Meanwhile, HUTCHMED (00013.HK)  -0.100 (-0.421%)    Short selling $18.61M; Ratio 11.681%   , HANSOH PHARMA, and ABBISKO-B (02256.HK)  +0.380 (+3.800%)   are forming out-licensing partnerships with multinational companies, achieving significant milestones.

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Furthermore, the rise of the "NewCo model" enables companies like HENGRUI PHARMA (01276.HK)  -0.600 (-1.054%)   to combine local R&D efforts with global resources and networks, while new insurance policies may speed up drug innovation.

The following are the ratings and target prices of some Chinese biopharmaceutical companies by UOB Kay Hian:

Shares│Ratings│TPs
INNOVENT BIO (01801.HK)  -0.750 (-0.956%)    Short selling $141.07M; Ratio 8.502%   |Buy|HK$110
HANSOH PHARMA (03692.HK)  +0.250 (+0.901%)    Short selling $118.32M; Ratio 32.930%   |Buy|HK$40
SINO BIOPHARM (01177.HK)  +0.140 (+2.887%)    Short selling $146.22M; Ratio 27.262%   |Buy|HK$7.7
BEIGENE (06160.HK)  +1.100 (+0.745%)    Short selling $220.09M; Ratio 22.348%   |Buy|HK$220
HUTCHMED (00013.HK)  -0.100 (-0.421%)    Short selling $18.61M; Ratio 11.681%   |Buy|HK$36
CSPC PHARMA (01093.HK)  +0.010 (+0.131%)    Short selling $246.37M; Ratio 14.362%   |Buy|HK$10.8
ABBISKO-B (02256.HK)  +0.380 (+3.800%)   |Buy| Not Rated
CKLIFE SCIENCES (00775.HK)  0.000 (0.000%)   |Buy|Not Rated
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-20 16:25.)

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