Innovative drug bulls continue their counterattack! Today (September 12), A+H innovative drug stocks witnessed broad-based recovery, with the drug ETF (562050) heavily weighted in A-share innovative drugs and the Hong Kong Stock Connect innovative drug ETF (520880) with 100% pure innovative drug exposure both surging over 1% intraday.
Capital flows fully reflect bullish sentiment, with the Hong Kong Stock Connect innovative drug ETF (520880) trading at premium throughout the day, with premium rates continuously soaring during morning session fluctuations. Yesterday's overseas negative rumors triggered severe volatility in innovative drugs, yet over 160 million yuan of funds bought the dip, marking the eighth consecutive day of capital inflows for 520880.
From the performance of Hong Kong Stock Connect innovative drug ETF (520880) constituent stocks, major holdings collectively recovered, with康方生物 rising over 6%, and 中国生物制药, 百济神州, 石药集团 all gaining over 2%. Additionally, 诺诚健华 and 和黄医药 surged over 10%.
The "super dark horse" 药捷安康-B, newly added on September 8, again posted stunning gains, once soaring over 130% intraday before closing up 77.09%, with cumulative weekly gains exceeding 205%! On the news front, the company's core product tucatinib recently received approval for Phase II breast cancer trials.
The "purification" adjustment of the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index tracked by Hong Kong Stock Connect innovative drug ETF (520880) came at a perfect time. The biggest change in the index revision was the explicit exclusion of CXO companies, followed by expanding the selection scope to all Hong Kong Stock Connect companies, facilitating earlier inclusion of small-cap potential stocks. For example, the newly included 药捷安康-B, 映恩生物-B, and MIRXES-B are all innovative drug R&D companies that joined Stock Connect on September 8.
After the Hong Kong Stock Connect innovative drug ETF (520880) underlying index upgraded to become a CXO-free, 100% innovative drug R&D-focused index, it can more precisely reflect innovative drug industry trends from a representativeness perspective. In terms of index performance, it can both avoid CXO interference with index trends and capture the ultra-high elasticity of innovative drug rising stars, potentially demonstrating stronger offensive capabilities when innovative drug markets rally.
According to the National Health Commission's September 11 introduction, China's new drugs under research account for over 20% of the global total, ranking second globally in new drug R&D. Multiple domestic innovative drugs including 舒格利单抗, 恩沙替尼, and 谷美替尼 have successively received marketing approval, filling gaps in domestic innovative drugs in respective fields. China's self-developed anti-tumor drug 泽布替尼 has been approved for marketing in multiple countries.
Founder Securities stated that the long bull market for innovative drugs may be far from over, with innovative drug assets from China's engineer dividend yet to fully realize commercial value. Hong Kong innovative drug sector valuations remain low, with numerous BD deals landing with high certainty. Future major tracks like small nucleic acids and oral GLP-1 BD licensing remain in hot phases, with bidding and M&A amounts staying elevated, supporting expectations for their explosive potential.
Reminder: Market volatility may be significant recently, and short-term gains/losses do not indicate future performance. Investors must make rational investments based on their capital conditions and risk tolerance, paying close attention to position and risk management.
Risk Warning: Hong Kong Stock Connect innovative drug ETF passively tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, with base date of December 31, 2020, and publication date of July 17, 2023. Annual returns since the index publication for complete years were: 2021: -22.72%; 2022: -16.48%; 2023: -19.76%; 2024: -14.16%. Index constituent composition adjusts timely according to compilation rules, and historical backtesting performance does not predict future index performance. Index constituents mentioned in the article are for display only, individual stock descriptions do not constitute investment advice and do not represent holdings information or trading activities of any funds managed. The fund manager assesses Hong Kong Stock Connect innovative drug ETF as R4-Medium-High Risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any forms of expression, etc.) serves reference purposes only, and investors must take responsibility for any autonomous investment decisions. Furthermore, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor bear any responsibility for direct or indirect losses caused by using this article's content. Performance of other funds managed by the fund manager does not guarantee fund performance, past fund performance does not represent future performance, fund investment carries risks, and fund investment requires caution.
MACD golden cross signals formed, these stocks show good upward momentum!