**Top News** Hong Kong’s Financial Secretary Paul Chan stated that amid geopolitical uncertainties, global investors are reassessing portfolio risks and diversifying investments, with Hong Kong emerging as a safe haven. Total bank deposits in Hong Kong rose over 10% year-to-date to exceed HKD 19 trillion, following a 7% increase last year. The city leads in IPO fundraising, boasts a thriving wealth management sector, and continues deepening global financial ties, reflecting international capital’s confidence. Recent heavyweight IPOs attracted cornerstone investors from Western and Middle Eastern markets. Many global financial leaders visiting Hong Kong indicated plans to expand local hiring and operations.
**Market Outlook** The Nasdaq Golden Dragon China Index closed up 1.23% on Friday. The Dow Jones Industrial Average gained 1.08%, while the S&P 500 and Nasdaq Composite rose 0.98% and 0.88%, respectively. For the week, the Nasdaq fell 2.74%, the S&P 500 dropped 1.95%, and the Dow declined 1.91%. Major tech stocks were mixed, with Google up over 3%, Intel over 2%, and Apple nearly 2%. Most popular Chinese ADRs advanced, with NIO up over 3%, and Bilibili and Li Auto rising over 2%.
**Key Developments** - **Power Demand**: Southern China’s electricity consumption in October surged 10% YoY to 160.3 billion kWh, marking the first double-digit growth since February, signaling steady economic recovery. By sector, primary, secondary, tertiary industries, and household usage grew 6.6%, 6.5%, 12%, and 21.7%, respectively. - **Index Inclusion**: Innovent Bio (01801) and Zijin Mining (02899) will join the Hang Seng ESG Enhanced Index, effective December 8, 2025. - **Hengrui Pharma (01276)**: Nine drugs, including SHR-9839 and adebrelimab, received clinical trial approvals from China’s NMPA. - **Asset Sales**: - CHINA JINMAO (00817) plans to sell 100% of its subsidiary Jinmao (Sanya) Tourism for RMB 2.2646 billion. - BAIC MOTOR (01958) agreed to sell a 51% stake in BAIC International to its parent for RMB 1.608 billion. - **CITIC BANK (00998)**: Subsidiary CITIC Financial Asset Investment secured regulatory approval to launch with RMB 10 billion capital in Guangzhou. - **Ruisheng Lifestyle (01922)**: Forecasts H1 net profit of RMB 50–60 million, reversing a RMB 15.4 million loss YoY, driven by absence of asset impairments.
**Spotlight: Innovent Bio (01801)** Innovent reported H1 2025 revenue of RMB 5.953 billion (+50% YoY) and net profit of RMB 1.213 billion, fueled by its 16 approved drugs across oncology, metabolism, and ophthalmology. Core product Tyvyt (sintilimab) showed steady growth, while Mazdutide (GCG/GLP-1 dual agonist) became a key driver. On November 20, Innovent announced Mazdutide met all primary and secondary endpoints in the Phase III GLORY-2 trial for severe obesity (BMI≥30), offering a non-surgical alternative with efficacy rivaling bariatric surgery. The drug, co-developed with Eli Lilly, is approved in China for weight management and type 2 diabetes. Innovent plans to submit an NDA for the 9mg dose, aiming to address unmet needs in obesity treatment. Eli Lilly’s recent USD 1 trillion market cap underscores the vast potential of metabolic disorder therapies, spotlighting Innovent as a rising contender.
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