On October 16, during the morning session, the Hong Kong Stock Connect innovative drug sector experienced a rapid increase, with DualityBio-B leading the charge by over 9%. 3SBIO gained more than 8%, while Akeso, BGI and Junshi Biosciences also saw significant gains.
The Hong Kong Stock Connect Innovative Drug ETF (520880) has a 100% allocation to companies involved in innovative drug research and development, climbing sharply by over 3.6%, with trading volume quickly surpassing 200 million yuan. Notably, the fund has seen a continuous inflow of capital recently, accumulating 130 million yuan over the past four days.
On the news front, the 2025 European Society for Medical Oncology (ESMO) annual meeting is set to take place from October 17 to October 21 in Berlin, Germany. Recently, the ESMO released a series of routine abstracts, highlighting multiple studies from innovative drug companies such as Akeso and Kelun, focusing on clinical data related to bi-specific antibodies, ADCs, and other new technological platforms.
Huafu Securities pointed out that meetings like ESMO could yield data that exceeds expectations, coupled with potential business development (BD) catalysts in Q4, indicating a second wave of rally for innovative drugs this quarter. Huayuan Securities also noted that catalysts like ESMO, business development, and healthcare negotiation may help stabilize and rebound the innovative drug sector.
The Hong Kong Stock Connect Innovative Drug ETF (520880) passively tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index, which currently excludes any CXO companies and is entirely focused on innovative drug development firms, accurately representing the hard core of innovative drug capabilities. Out-of-market investors may consider its corresponding fund: 025221.
So far this year, the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index has exhibited higher elasticity and stronger performance compared to similar indices, accumulating a 108.14% gain year-to-date as of the end of September, outperforming many other innovative drug indices.
The Hong Kong Stock Connect Innovative Drug ETF (520880) is the first ETF in the market to track this index, with a fund size of 1.806 billion yuan as of the end of September. It has an average daily trading volume of 493 million yuan since its launch, making it the largest and most liquid ETF tracking the same index.
Caution: Recent market volatility may be considerable, and short-term price fluctuations do not necessarily predict future performance. Investors are advised to consider their own financial situation and risk tolerance when making investment decisions, and should pay close attention to position sizing and risk management.
Risk Warning: The Hong Kong Stock Connect Innovative Drug ETF passively tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index, with a base date of December 31, 2020, and a release date of July 17, 2023. The annual performance of the index since its inception has been: 2021: -22.72%; 2022: -16.48%; 2023: -19.76%; 2024: -14.16%. The composition of the index may be adjusted according to its rules, and past performance is not indicative of future results. The individual stocks discussed are for illustrative purposes only and do not constitute investment advice. The fund manager assesses the risk level of the Hong Kong Stock Connect Innovative Drug ETF and its medical ETF matching fund as R4 - medium-high risk, suitable for aggressive investors (C4) and above. The risk level for medical ETFs and pharmaceutical ETFs is R3 - medium risk, suitable for balanced investors (C3) and above. Any information mentioned in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any forms of expression) is solely for reference. Investors must take responsibility for any investment decisions made autonomously. Furthermore, any opinions, analyses, and predictions in this article do not constitute investment advice and the author is not liable for any direct or indirect losses resulting from the use of this content. The performance of managed funds does not guarantee the performance of the fund itself, and past performance does not indicate future results. Investment in funds carries risks and should be approached with caution.