Today, Hong Kong's innovative drug stocks fell nearly 4%. Many people are asking Bog why the sharp decline happened.
At first, I couldn't find the reason, but I saw a trending topic that said: 'Trump will sign an executive order to lower drug prices,' and instantly understood the reason for the sharp decline in Hong Kong's innovative drug stocks.
Trump's main task is to increase U.S. revenue and reduce the scale of U.S. debt. However, Musk's DOGE has little effect, and military spending is set to exceed $1 trillion. What should we do? We thought about learning from us about centralized procurement, reducing drug prices to lower healthcare expenditures.
One of the main clients of our Hong Kong innovative drug companies is the U.S. pharmaceutical giants. If U.S. drug prices decrease, leading to reduced revenues for pharmaceutical companies, will it affect their fees paid to Chinese innovative drug partners? Following this line of thought, Hong Kong's innovative drugs have pulled back.
Today's callback was relatively slow, dropping 4%. Bog made a trade during the day, buying 100,000 in the morning and selling 100,000 close to noon, earning 720 yuan, less than 1%. I thought about it and decided that trading is too exhausting.
Just continue to hold onto the existing Hong Kong innovative drug stocks; first, the valuation is really cheap, and second, the future domestic innovative drug market has great potential. China is also one of the largest innovative drug markets in the world.
Let's talk about military industry again. Yesterday, Bog posted on Weibo saying that if the military industry drops 5% today, he would increase his position. On Friday, the military industry pulled back, and since India and Pakistan have both ceased fire, according to this logic, the military industry should drop today. But in the long run, 'newly purchased planes were hit,' which verifies the quality of our weapons; one actual combat is better than N exercises. I didn't expect the military industry to surge today; many people probably researched over the weekend and reached the same consensus as Bog. Furthermore, U.S. military spending has exceeded $1 trillion, making the future military industry a certain large track. Bog continues to hold the military stocks heavily in his off-market account. Today's ETF account gains were all hedged by the decline in Hong Kong's innovative drug stocks~ We can only grit our teeth and persist.
