Sprint Hong Kong Stock Connect Final Inspection Window: Haixi Pharmaceutical (02637)'s “Market Capitalization Safety Pad” and Market Language

In the past two months, the K-line chart of Haixi New Pharmaceutical (02637) has followed a standard control board trajectory: from the launch of volume in late October, to shrinking and washing dishes in early November, to a sharp continuous positive rise thereafter, pushing the stock price to a new high during the year, and finally unfolding strong fluctuations for several weeks. Behind this series of well-paced and relaxed market language, the main capital clearly reflects the strong intention orientation of the main capital — with the core goals of rapidly increasing market value and activating liquidity, and developing a precise market layout for the sprint to be included in the Hong Kong Stock Connect.

An act to raise market capitalization as a preview of “getting through”

According to the Zhitong Finance App, by deconstructing the phased market data of Haixi New Pharmaceutical for the past two months (October 20 to December 9, 2025), it is possible to clearly identify a complete set of main operating maps with clear strategic intentions. Its core goal is to rapidly increase and stabilize market value to meet Hong Kong Stock Connect's inclusion criteria. The entire process is well-paced and can be divided into four key stages:

The first phase (October 20 to October 30) is to raise funds and lay the foundation. This stage shows a typical “sharp rise in price” fund-raising characteristics. The stock price started as low as 97.50 and rose 18.63% in 8 trading days. At the same time, the turnover rate surged to 4.82%, bringing the total volume to 3.791,700. More importantly, the positive line accounted for 87.5% of the volume (3.318,500), indicating that buying power is absolutely dominant. The main force has accumulated enough “ammo” and space for subsequent operations by actively purchasing in this range, quickly collecting chips and breaking out of the cost zone.

Phase 2 (October 31 to November 5). After an initial lift, the market entered a four-day technical adjustment period. The stock price pulled back 5.79%, but the volume shrank sharply to 478,700, and the turnover rate was only 0.61%. Although the number of negative lines prevailed, the “ground volume” was only 62,300, and most of the negative volume was due to the settlement of the previous profit market, and there was no panic sell-off. This “downsizing and pullback” is a standard trading method. The purpose is to clean up short-term floating capital, raise average holding costs in the market, and reduce selling pressure for the upcoming main upward wave.

The third phase (November 6 to November 12) is the core breakthrough stage of this operation. With 5 consecutive positive lines, the main force rapidly raised the stock price from 112.50 to 147.00, with a range increase of 26.49%. What is particularly noteworthy is that this round of pull-up shows the characteristics of a “contraction increase” — the turnover rate remains low at 0.79%, and the positive ratio accounts for 100%. This generally indicates that market chips are well locked in, and that the main players have a high degree of control. Using only relatively small capital costs, they have achieved rapid price breakthroughs, and successfully raised stock prices and market capitalization to a brand new platform.

The fourth phase (November 13 to December 9) is to save energy for the new phase. The stock price fluctuated and consolidated over a period of several weeks on the new platform. Despite fluctuations over the period, the overall average price remained stable in the high range of 130.54, and the number of positive days still outweighed the negative line, showing good bearing capacity. This high level of momentum is conducive to further forging market consensus and making necessary preparations to open up a wider market capitalization space in the future.

Simply put, through four well-paced stages — from laying the foundation for low-level volume absorption, shrinking and optimizing the structure, to efficiently elevating the breakthrough platform and stabilizing the foundation with high-level shocks — Haixi New Pharmaceutical completed a carefully designed market capitalization operation.

Hong Kong Stock Connect Sprint Strategy: Market Value Management Path Based on “Full Circulation” Expectations

As an H-share listed company, Haixi Pharmaceutical has submitted an application for “full circulation” of shares. Under this mechanism, shares held by major shareholders will be eligible to circulate in the secondary market after the 12-month ban expires, providing them with an important exit and asset allocation channel. This institutional arrangement objectively strengthens the majority shareholders' motivation for active market value management. One of its core goals is to promote the company's entry into the Hong Kong Stock Connect, thereby introducing a broader investor base and improving liquidity and valuation levels.

According to the current Hong Kong Stock Connect inclusion rules, target companies must meet the core requirements of an average daily market capitalization of not less than HK$9.3 billion. Facing the next regular review window on December 31, time constraints are tight. The market value management strategy adopted by Haixi New Pharmaceutical has a clear arithmetic logic: by significantly raising the market value above the threshold at the beginning of the inspection period, a so-called “market capitalization safety cushion” was built.

Specifically, as of the close of trading on December 10, the company's tradable share capital was 78.7073 million shares. Based on current stock prices, its average daily market value has reached HK$9.77 billion, which is already above the HK$9.3 billion threshold requirement. What is particularly critical is that while the stock price climbed to a high of HK$147 in the previous period, the company's market capitalization has surpassed HK$10 billion. Even if subsequent stock prices fall due to technical adjustments, the high base effect in the early period will strongly support the average daily market value in circulation, thereby drastically reducing the tail risk of market capitalization falling short of the standard due to short-term fluctuations.

From a strategy implementation perspective, this path aims to secure the average daily market capitalization within a limited number of trading days (currently with about 13 trading days remaining until December 31) with minimal market fluctuation costs, laying the foundation for successfully entering the Hong Kong Stock Connect candidate list.

In summary, in the past two months, Haixi Pharmaceutical has not only efficiently pushed the stock price and market value above the Hong Kong Stock Connect threshold through precise rhythm control of “fundraising - washing - boosting - consolidation”, but also guided market expectations and optimized the position structure in the process. Currently, its average market value in circulation is above HK$9.77 billion. It has built a solid technical and psychological “safety cushion” to lock in Hong Kong Stock Connect candidates before the December 31 review window.

However, the ultimate results of any sophisticated capital operation need to be tested in larger coordinates. In the short term, successful “entry” will bring significant liquidity premiums and valuation boosts to achieve the primary goal of the strategy. But in the long run, the ultimate support for stock prices will inevitably return to the company's fundamentals — its pipeline progress, commercialization capabilities, and profit prospects.