On September 10th, the Hong Kong Stock Connect innovative drug sector underwent adjustments, with the 100% pure Hong Kong Stock Connect Innovative Drug ETF (520880) continuing underwater fluctuations in the afternoon. The intraday price fell by over 1%, with trading volume exceeding 430 million yuan. The high premium in the market suggests continued capital absorption of "cheap chips."
Among constituent stocks, PharmaCielo-B performed most prominently, rising over 25%, while Eucure Biopharma-B and MIRXES-B gained over 6% and 5% respectively. On the downside, Sino Biopharmaceutical, Junshi Biosciences, and CStone Pharmaceuticals led the declines.
On the news front, BeiGene announced at the WCLC conference its Phase II clinical data for iza-bren combined with osimertinib as first-line treatment for EGFR-mutated NSCLC, showing 100% ORR with controllable safety profile. Phase III trials in China have already been initiated. Additionally, Gensci Orthobiologics' independently developed GR2303 injection received clinical trial approval from the National Medical Products Administration for inflammatory bowel disease treatment.
Founder Securities pointed out that the innovative drug bull market may be far from over, as innovative drug assets driven by China's engineering talent dividend have not yet fully realized their commercial value. The Hong Kong Stock Connect innovative drug sector maintains low valuations with numerous BD deals landing with high certainty. Future major tracks such as small nucleic acids and oral GLP-1 BD licensing remain in hot phases, with bidding and M&A amounts staying elevated, supporting strong growth potential.
Wanlian Securities indicated that in the first half of 2025, the Hong Kong Stock Connect innovative drug industry welcomed recovery after four years of adjustment, with BD transactions and positive ASCO conference data serving as key catalysts for stock prices. High revenue and profit growth in the industry is primarily driven by accelerated overseas expansion and commercial volume growth, with BD revenue becoming a new growth engine as multiple biotech companies turn profitable. The improvement of Hong Kong's 18A policy framework and the implementation of the fifth set of standards on the Science and Technology Innovation Board have enhanced the financing environment, boosted liquidity, and supported valuation recovery.
The Hong Kong Stock Connect Innovative Drug ETF (520880) passively tracks the pure innovative drug index excluding CXOs - the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index (HSSCPB). The index's current top ten weighted stocks are Sino Biopharmaceutical, BeiGene, CSPC Pharmaceutical Group, Innovent Biologics, CStone Pharmaceuticals, Sino Biopharmaceutical, Hansoh Pharma, Chemocentryx-B, Zai Lab, and Ascentage Pharma-B.
Data sourced from Shanghai and Shenzhen Stock Exchanges, public materials, etc.
Risk Warning: The above products are issued and managed by fund management companies, and distribution institutions do not bear responsibility for product investment, redemption, and risk management. Investors should carefully read fund legal documents including the Fund Contract, Prospectus, and Fund Product Summary to understand the fund's risk-return characteristics and select products matching their risk tolerance. Past fund performance does not predict future results, and fund investment requires caution! Distribution institutions (including fund management company direct sales institutions and other sales institutions) conduct risk assessments of funds according to relevant laws and regulations. Investors should pay timely attention to appropriateness opinions issued by fund management companies. Appropriateness opinions among various distribution institutions may not necessarily be consistent, and fund product risk level assessment results issued by fund distribution institutions shall not be lower than those made by fund management companies. Differences exist between fund risk-return characteristics and fund risk levels in fund contracts due to different consideration factors. Investors should understand fund risk-return situations, carefully select fund products based on their investment objectives, terms, investment experience, and risk tolerance, and bear risks independently. CSRC registration of the above funds does not indicate substantial judgment or guarantee of their investment value, market prospects, and returns. Fund investment requires caution.
MACD golden cross signal formed, these stocks show good upward momentum!