Hong Kong-listed innovative drug stocks continued their upward momentum on September 3rd, with leading biotech names pushing the sector higher. CSPC Pharma and Sino Biopharmaceutical both advanced more than 4%, while the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index—a pure-play gauge for the sector—spiked over 2% at one point during the session. The Huabao Hang Seng HK Stock Connect Innovative Drug ETF (520880), which tracks this index, reclaimed its half-year moving average once again in intraday trading.

On the fundamental front, CSPC Pharma announced on September 1st that it delivered an oral presentation at the 2026 European Society of Cardiology (ESC) Annual Meeting, showcasing positive Phase II results from its self-developed PCSK9-targeting siRNA candidate, SYH2053, in Chinese patients with primary hypercholesterolemia or mixed dyslipidemia.

Looking ahead, the innovative drug sector is entering a dense period of clinical data disclosure. The upcoming World Conference on Lung Cancer (WCLC), which opens on September 12th, and the European Society for Medical Oncology (ESMO) Congress, starting October 23rd, will serve as key catalysts. CICC (China International Capital Corporation) highlighted that many innovative drug firms are reaching the clinical data validation stage, recommending a bottom-up approach to stock selection.

From an earnings perspective, mid-year results have confirmed the industry's upward cycle. According to statistics, among the 48 innovative drug development companies covered by the Huabao HK Stock Connect Innovative Drug ETF (520880), 31 posted profits in the first half, and 33 saw year-on-year growth in net profit attributable to shareholders—nearly 70% of the total. Guotai Junan Securities (GTJA) noted that strong domestic demand and robust overseas demand, coupled with undervalued global pharmaceutical assets, support a continued reversal rally in innovative drugs.

For investors seeking full-chain exposure to innovative drugs, two T+0 trading instruments stand out. The Huabao HK Stock Connect Innovative Drug ETF (520880) passively tracks the Hang Seng HK Stock Connect Innovative Drug Select Index, allocating 100% to innovative drug R&D companies, with about 70% of its holdings in R&D leaders. Its off-exchange feeder fund is code 025221. Separately, the Huabao HK Stock Connect Healthcare ETF (159137) tracks the Hang Seng HK Stock Connect Healthcare Thematic Index, with heavy exposure to the innovative drug supply chain—50% in CXO firms and 20% in innovative drug makers, where the WuXi group accounts for over 38% of holdings. Its off-exchange feeder fund is code 026922.

Data sources include the Shanghai-Hong Kong-Shenzhen exchanges, CSI Index, and Hang Seng Index Company. Institutional views referenced: GTJA Healthcare (2026/09/02) "Outstanding Mid-Year Results in Innovative Drugs; Continue to Favor the Reversal Rally," and CICC (2026/06/03) "September Sector Allocation Report."

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