Biotech Stocks Plunge Amid Global Bond Selloff and Rising Interest Rate Concerns

Stock News05-18

Innovative drug concept stocks experienced a broad decline. As of writing, CARSGEN-B (02171) fell 6.95% to HKD 18.35; ALPHAMAB-B (09966) dropped 5.27% to HKD 8.45; KINTOR PHARMA-B (09939) decreased 3.47% to HKD 2.78; BRII-B (02137) declined 3.31% to HKD 1.17.

Market sentiment was impacted by the ongoing blockade of the Strait of Hormuz, which is pushing oil prices above $105 per barrel. Signs of a sell-off in global bond markets have emerged. The yield on the US 10-year Treasury note has risen above 4.5%, Japan's 30-year government bond yield surpassed 4% for the first time, and UK long-term gilt yields have climbed to their highest level in 28 years, sparking concerns about a potential tightening of the global financial environment.

Analysis indicates that global financing for innovative drugs is expected to continue its recovery from the fourth quarter of 2025 into the first quarter of 2026. In April, investment and financing for innovative drugs globally, in the US, and domestically showed signs of robust recovery. However, some analysts caution that if global interest rates remain at elevated levels for a sustained period, it could negatively impact valuations and the financing environment for the innovative drug sector.

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