HAIXI PHARMA (02637) Builds "Market Cap Cushion" with Strategic Trading Patterns Ahead of Stock Connect Review

Over the past two months, HAIXI PHARMA (02637) has exhibited textbook trading patterns indicative of controlled accumulation: volume-driven breakout in late October, followed by low-volume consolidation in early November, then consecutive bullish candles pushing prices to yearly highs before entering weeks of strong sideways movement. This orchestrated sequence reveals clear institutional intent—rapidly boosting market capitalization and liquidity to qualify for Hong Kong Stock Connect inclusion.

**A Market Cap Lift Engineered for Inclusion** Analysis of HAIXI PHARMA’s trading data from October 20 to December 9, 2025, reveals a four-phase strategic maneuver targeting Stock Connect eligibility:

1. **Accumulation Phase (Oct 20-30):** Prices rose 18.63% from HK$97.50 on heavy turnover (4.82% daily average), with 87.5% of volume concentrated in bullish candles. This established a foundation of controlled buying.

2. **Consolidation Phase (Oct 31-Nov 5):** A 5.79% pullback on sharply reduced volume (47.87k shares, 0.61% turnover) flushed out weak holders without panic selling—a classic shakeout before upward momentum.

3. **Breakout Phase (Nov 6-12):** Five straight bullish candles drove prices 26.49% higher to HK$147.00, with low 0.79% turnover indicating strong holder commitment and efficient price discovery.

4. **Stabilization Phase (Nov 13-Dec 9):** Sideways trading above HK$130.54 maintained elevated market cap while allowing natural price discovery, demonstrating sustained demand.

**The Stock Connect Calculus: Full Float as Catalyst** As an H-share issuer with pending "full float" approval—which would allow major shareholders to trade locked shares after a 12-month moratorium—HAIXI PHARMA has structural incentives to pursue Stock Connect inclusion for enhanced liquidity and valuation.

Current rules require a 93-day average market cap of HK$9.3 billion. With 78.71 million shares outstanding, HAIXI PHARMA’s HK$97.7 billion average float cap (as of Dec 10) already clears the threshold. The earlier HK$147 peak (implying HK$100+ billion cap) created a "safety cushion"—even if prices retreat, the high base supports compliance through December’s review window.

**Execution and Outlook** This 13-trading-day countdown strategy minimizes volatility risks while locking in eligibility. Short-term success hinges on maintaining the HK$97.7 billion+ average, but long-term value ultimately depends on pipeline execution and commercialization—factors beyond trading patterns.