HK Stock Market Move | CRO concept stocks led the gains; JP Morgan said it is not too worried about the impact of rising interest rates on the sector, and order growth supports subsequent earnings delivery.

CRO concept stocks led the gains. As of press time, WUXI BIO (02269) rose 4.06% to HK$57.65; Pharmaron Beijing (03759) rose 3.86% to HK$32.84; Hangzhou Tigermed Consulting (03347) rose 3.13% to HK$46.74; WuXi AppTec (02359) rose 2.26% to HK$217.2. On the news front, the U.S. 10-year Treasury yield climbed as high as 5.351% at one point on Monday, hitting a 24-year high. JP Morgan released a research report stating that it is not too worried about the impact of rising interest rates on China's healthcare industry. Interest rates are more relevant to long-cycle biotech assets, while the direct link between CXO valuations and interest rate changes is relatively weak, with performance driven more by earnings. The bank expects this rate hike cycle to end after one more hike in December, rather than continuing into a prolonged tightening next year. Therefore, it is not too worried about the impact of rising interest rates on China's healthcare valuations, and it remains bullish on the biotech and CXO sub-sectors. It is worth noting that the 2026 European Society for Medical Oncology Annual Meeting will be held from October 23 to 27 in Madrid, Spain. A total of 29 Chinese new drug studies are expected to be selected for LBA at this year's congress, accounting for about one-third of all LBAs at the meeting, of which 5 will enter the Presidential Symposium and the remaining 24 will be presented as preferred oral or rapid oral presentations. The number and proportion of selected studies hit a record high again after 2025. Guosheng pointed out that order growth, combined with capacity in emerging fields such as ADC, GLP-1, and nucleic acid drugs entering the harvest period, provides support for subsequent CXO revenue growth, and order conversion and profit realization are worth continued tracking.