On August 29, Hong Kong innovative drug stocks opened slightly higher in early trading and continued to fluctuate. Around 10 AM, they suddenly surged vertically, with the popular Hong Kong Stock Connect Innovative Drug ETF (520880) rapidly climbing in on-exchange price, currently up 2.5% with real-time trading volume of 258 million yuan, showing active trading. Most constituent stocks rebounded, with INNOVENT BIO rising over 6%, CSPC Pharmaceutical Group up over 5%, China Biologic Products Holdings up over 4%, and BeiGene up nearly 3%.
Recently, the Hong Kong innovative drug sector has experienced increased volatility, which analysts believe may be related to periodic sentiment decline. However, short-term fluctuations may not change the long-term logic of the domestic innovative drug industry. Policy support continues to be favorable, with more cross-border BD deals expected throughout the year. The international value of Chinese innovative drug assets is steadily improving, and short-term opportunities for bottom-fishing due to sentiment disturbances may be worth attention.
China Merchants Securities points out that as the Federal Reserve signals dovish stance, market expectations for interest rate cuts have increased, with declining U.S. Treasury yields boosting global risk appetite. Combined with easing local liquidity pressure in Hong Kong, previously underperforming Hong Kong stocks are expected to be lifted, particularly bullish on investment opportunities in Hang Seng Tech and Hong Kong innovative drugs. The current market is in Stage II of a capital-driven bull market, with innovative drugs as one of the core tracks, featuring intensive technological breakthroughs, accelerated approvals and overseas expansion, increased policy support, and continuous internationalization progress, demonstrating strong industry trends and investment value.
The Hong Kong Stock Connect Innovative Drug ETF (520880) passively tracks the Hang Seng Hong Kong Stock Connect Select Innovative Drug Index, making it the first ETF in the market to track this index. The Hang Seng Hong Kong Stock Connect Select Innovative Drug Index precisely focuses on the innovative drug industry chain, with constituent stocks mainly comprising innovative drug R&D companies, high concentration of heavyweight stocks, and significant leading advantages.
Note: The above individual stocks are all among the top 15 weighted stocks of the Hang Seng Hong Kong Stock Connect Select Innovative Drug Index, presented for display purposes only. Individual stock descriptions do not constitute any form of investment advice, nor do they represent holding information and trading activities of any fund under the management company.
Year-to-date through July 31, the Hang Seng Hong Kong Stock Connect Select Innovative Drug Index has cumulatively risen 101.58%, leading among various innovative drug indices, outperforming the Hang Seng Index (23.50%) and Hang Seng Tech Index (22.05%) by 78.08 and 79.53 percentage points respectively, showing outstanding excess performance.
The Hang Seng Hong Kong Stock Connect Select Innovative Drug Index has a base date of December 31, 2020, and was published on July 17, 2023. Since the index's publication, annual returns for complete years were: 2021: -22.72%; 2022: -16.48%; 2023: -19.76%; 2024: -14.16%. Index constituent composition is adjusted timely according to index compilation rules, and backtested historical performance does not predict future index performance.
Reminder: Recent market volatility may be significant, and short-term gains and losses do not predict future performance. Investors must invest rationally based on their own financial situation and risk tolerance, paying high attention to position and risk management.
Risk Warning: The Hong Kong Stock Connect Innovative Drug ETF passively tracks the Hang Seng Hong Kong Stock Connect Select Innovative Drug Index, which has a base date of December 31, 2020, and publication date of July 17, 2023. Index constituent composition is adjusted timely according to index compilation rules. Index constituent stocks mentioned in the text are for display purposes only. Individual stock descriptions do not constitute any form of investment advice, nor do they represent holding information and trading activities of any fund under the management company. The fund management company assesses this fund's risk level as R4-Medium to High Risk, suitable for aggressive (C4) and above investors. Any information appearing in this text (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must take responsibility for any autonomous investment decisions. Additionally, any views, analyses, and predictions in this text do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses arising from the use of this content. Performance of other funds managed by the fund management company does not constitute a guarantee of fund performance. Past performance of funds does not represent future performance. Fund investment involves risks, and fund investment should be approached with caution.
MACD golden cross signal formed, these stocks show good upward momentum!