The total market capitalization of Chinese biotech stocks listed in Hong Kong has snowballed by 154% YTD, way above the HSI's 34% growth over the same period, which is believed to reflect a major shift in market recognition of the innovation capabilities of domestic pharma companies, according to a report from Morgan Stanley.

It is expected that the US Fed's accelerated rate cut pace will facilitate risk appetite adjustments, channeling funds into growth sectors such as Chinese biotech.

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However, it is worth noting that Morgan Stanley still anticipates the performance of some stocks to hinge on their fundamentals, including commercialization execution and innovation R&D progress.

The broker is optimistic about companies with short-term catalysts, such as AKESO (09926.HK)  +1.300 (+1.002%)    Short selling $138.33M; Ratio 16.131%   , INNOCARE (09969.HK)  +1.120 (+6.813%)    Short selling $62.26M; Ratio 20.414%   , ABBISKO-B (02256.HK)  +0.350 (+2.006%)    Short selling $4.52M; Ratio 11.583%   , INNOVENT BIO (01801.HK)  +2.650 (+2.879%)    Short selling $76.54M; Ratio 5.992%   , and DUALITYBIO-B (09606.HK)  -10.000 (-2.519%)    Short selling $21.76M; Ratio 7.351%   . It has also given VISEN PHARMA-B (02561.HK)  -0.500 (-1.138%)   and ZAI LAB (09688.HK)  -0.020 (-0.079%)    Short selling $54.45M; Ratio 30.955%   an Outperform rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-09-22 16:25.)