Company Overview: Sinopharm Accord, a subsidiary of SINOPHARM, is experiencing significant growth, with a projected YoY increase in net profit attributable to shareholders for 2025 estimated between 64.20% and 89.11%.

Profit Expectations: The company's net profit, excluding non-recurring gains and losses, is expected to rise by approximately 71.38% to 98.91% YoY, reaching between RMB996 million and RMB1.156 billion.

Earnings Per Share: Basic earnings per share are anticipated to increase to around RMB1.9-2.18, compared to RMB1.15 in the previous year.

Market Activity: The stock has seen short selling activity amounting to $20.10 million, with a short selling ratio of 23.277%.

Market Performance: The Hang Seng Index (HSI) fell by 454 points (1.7%) to close at 25,930, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.9% and 1.6%, respectively.

Active Heavyweights: Major stocks like Xiaomi, Tencent, and Meituan saw significant drops, with Xiaomi down 2.8%, Tencent down 2%, and Meituan down 1.7%, alongside notable short selling activity.

Notable Declines: XPeng's stock plummeted by 10.5%, while other companies like China Hongqiao and Zhongsheng Holding also faced substantial losses, indicating a broader trend of declining stock prices among constituents.

Short Selling Trends: A variety of stocks experienced high short selling ratios, with companies like Wharf REIC and Lenovo Group showing significant short selling activity, reflecting investor sentiment amid market volatility.

Market Performance: The Hang Seng Index (HSI) rose by 47 points (0.2%) to close at 26,696, with a total market turnover of $210.23 billion.

Active Heavyweights: Notable movements included Alibaba (BABA) down 1.8%, Xiaomi (XIAOMI) up 1.5%, and Tencent (TENCENT) slightly up by 0.1%.

Top Gainers: XPENG saw a significant increase of 17.9%, while other notable gainers included Sinopharm and China Res Mixc, both hitting new highs.

Short Selling Activity: The short selling ratios varied across stocks, with Ping An having a high ratio of 30.9% and several stocks like HSBC and ABC also reaching new highs despite short selling pressures.

Market Performance: The Hang Seng Index (HSI) fell by 53 points (0.2%) to 26,595, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.

Active Heavyweights: Major stocks like Alibaba, Meituan, and Tencent saw declines, with Alibaba dropping 2.3% and Tencent down 0.8%, while Xiaomi gained 0.7%.

Notable Gainers: XPENG surged by 15.1%, and other stocks like Sinopharm and Baidu also posted significant gains, reflecting positive movements among certain constituents.

Short Selling Trends: High short selling ratios were observed in several stocks, with Baidu and Ping An showing notable activity, indicating investor caution in the market.

Current State of the Chinese Pharmaceutical Industry: HSBC Global Research reports that the Chinese pharmaceutical industry lacks short-term catalysts for growth, with a weakening recovery in the domestic market and ongoing policy uncertainties.

Impact on Earnings Growth: Companies are struggling to offset slowing earnings growth, relying on operational efficiency improvements, while facing challenges from delayed domestic consumption recovery and volume-based procurement policies.

Stock Ratings and Price Adjustments: HSBC maintains a Hold rating for SH PHARMA and SINOPHARM, with SH PHARMA's target price reduced from HKD12.1 to HKD11.8, and SINOPHARM's increased from HKD18 to HKD19.5.

Short Selling Trends: The report highlights significant short selling activity in both companies, indicating market skepticism about their short-term performance, with SH PHARMA and SINOPHARM experiencing short selling ratios of 6.344% and 14.540%, respectively.