BOC International: The pharmaceutical sector continues its steady, moderate and positive trend this year, and is optimistic about the main line of innovation for a long time

The Zhitong Finance App learned that since October 2025, BOC International released a research report saying that since October 2025, the proportion of domestic investors holding pharmaceutical stocks through Hong Kong Stock Connect has gradually stabilized after a slight decline. Overall, foreign holdings have stabilized, and the general direction of domestic and foreign investors increasing the layout of innovative drugs has not changed.

As of this week, 25 places have issued implementation documents for the 2025 medical insurance and commercial insurance catalogue, and 22 places have clarified the timing of pharmaceutical meetings. The bank recommended continuing to pay attention to the subsequent sales volume of the new varieties/indications covered by health insurance, as well as the actual implementation and payment of commercial insurance. At the beginning of the new year, the Hong Kong stock pharmaceutical sector performed well. Next week, the JPM Industry Conference is about to be held, which is expected to further catalyze the market in the sector.

The bank believes that the steady, moderate, and positive trend in the 2026 sector will continue, and that the subsequent stock selection logic may return to fundamentals and valuations, focusing on leading stocks with poor fundamental expectations, are currently still undervalued, and have large margins of safety.