China 1

Another week, another insight-packed report from Tim Opler at Stifel Financial Corp.. One slide that caught my attention compared the relative public markets performances of US and China biotech firms. There is some inertia in the zeitgeist, or perhaps just in my brain: I was still firmly believing that China biotech stocks were doing better on the Hong Kong stock exchange, but that has not been the case since September 2025.

Sure, XBI is back at $120 after a few years in the purgatory... but in fact both XBI and Hang Seng are back almost exactly to where they were 5 years ago. While the left graph on Tim's slide is dramatic, applying a slightly longer timescale tells us a more nuanced story of ups and downs over the last 5 years with indices tracking each other and mostly XBI losing the track and catching up. As would be expected, these two are very much interdependent.

China 2

Now as a sort of counterpoint to "China Biotech Stocks are Diving", there is a secular force at work that looks unstoppable. Still from Tim Opler's report.

Tech has the the "Magnificent Seven"