HitGen Inc. and Market Movements on the Shanghai Stock Exchange
On May 29, 2025, the Shanghai Stock Exchange witnessed notable movements in the A-share market, with the ChiNext Index rising over 1% and the Northbound 50 Index climbing more than 1%. Among the standout performers, Three Friends Technology surged over 20%, while New Anjie increased by over 10%. The newly listed company Nuguqi saw a dramatic rise of over 200%, triggering a temporary halt.
EDA and Innovation Drug Concepts Surge
The market saw a significant uptick in EDA (Electronic Design Automation) concept stocks, with companies like Guangli Micro and Hua Da Jiutian climbing over 15%. This surge was fueled by reports from the UK’s Financial Times, citing sources that the Trump administration in the U.S. plans to restrict certain local companies from exporting software related to semiconductor design to China. This move, expected to be enforced by the Bureau of Industry and Security under the U.S. Department of Commerce, primarily affects large companies with EDA technology. EDA is crucial for integrated circuit design, covering the entire process from functional design to physical implementation. Recent reports suggest that China’s EDA industry is transitioning from a “follower” to an “innovator” amidst global semiconductor supply chain restructuring.
In the pharmaceutical sector, innovative drug concept stocks also gained momentum. Shu Tai Shen reached a 20% increase, with Borei Pharmaceutical rising over 8%, and companies like Huasheng Pharmaceutical, San Sheng Guojian, and Yi Fang Biology following suit.
Nuclear and Autonomous Vehicle Concepts Gain Attention
Nuclear power stocks were active, with Shangwei Group experiencing six consecutive days of significant gains. This was partly due to announcements from China Nuclear Corporation about new records in fusion device operation by the China Fusion Engineering Test Reactor. Meanwhile, autonomous vehicle concepts saw strength, with Tongda Electric achieving seven days of gains, and companies like Yun Nei Dongli and Jinglv Environmental reaching their daily limits.
Growth in CRO and Innovative Drug Stocks
The Contract Research Organization (CRO) concept continued its strong performance, with Ruizhi Pharmaceutical reaching a 20% increase, and Meidisi rising over 8%. The innovative drug concept also saw gains, with Shu Tai Shen again reaching a 20% increase, and companies like Jianyou Group and San Sheng Guojian leading the charge.
Investment and Strategic Moves by Companies
On May 27, Chengdu Xinda received significant investment, with 19.53 million yuan in margin purchases, accounting for 26.93% of the day’s inflow. This investment brought the company’s margin balance to 255 million yuan, representing 4.06% of its circulating market value, surpassing historical 90% quantile levels.
Additionally, Chengdu Xinda announced a change in the equity of its major shareholder, Anji Dongfang Jiayu Enterprise Management LLP, exceeding a 1% threshold. The company also revealed plans to increase its shareholding by 2.5 to 5 million yuan, funded by its own capital and a loan from Industrial Bank.
These developments highlight the dynamic nature of the Shanghai Stock Exchange, with significant movements in technology, pharmaceuticals, nuclear power, and autonomous vehicle sectors. Companies like HitGen Inc., listed on the exchange, are part of this vibrant market landscape.