JPMorgan-China CXO Scope of the _Biosecure Act_ could get narrower i...-106691125

AsiaPacificEquityResearch25February2024ChinaCXOHealthcareYangHuangACScopeofthe"BiosecureAct"couldgetnarrowerintheHouse(852)28003812yang.huang@jpmorgan.comReutersreportedthatMikeGallagher(R-WI),theChairmanoftheHouseJ.P.MorganSecurities(AsiaPacific)Limited/SelectCommitteeonChinaandtherepresentativewhosponsoredtheJ.P.MorganBroking(HongKong)Limited“BiosecureAct”,madesomeremarksonthebillduringhisrecenttriptoTaiwan.Overall,wethinkhislatestcommentsaremarginallypositivetoDeniseYan,CFAtheChinaCXOsectorandweshareourtakeawayshere.(852)28008195Wecontinuetobelievethattheprobabilityofthebillbeingpassedintolawdenise.yan@jpmorgan.cominthecurrentformremainslow.Thebill,evenifpassed,couldbeJ.P.MorganSecurities(AsiaPacific)Limited/narrowedinscopejudgingbyMr.Gallagher’slatestcomments.Mr.J.P.MorganBroking(HongKong)LimitedGallagherstatedthatheis“cautiouslyoptimisticthat(they)cangetsomethingdone”withtheproposedlegislation,butthescopemaybe“morenarrowlyDerekChoi,CPAtailored”withoutprovidingfurtherdetails.However,hedidexplainthat“theprimaryconcernisBGIandthesecondaryisWuXi”inhisview.Giventhebill(852)2800-8744itselfdoesnotcurrentlyreflectthisorderofpriority,weopinethathiscommentderek.c.choi@jpmorgan.comcouldpotentiallysuggestthathemightfocushiseffortsinrestrictingtheformerJ.P.MorganSecurities(AsiaPacific)Limited/(BGI),especia...