Southern Hang Seng Biotech ETF has surged more than 5%, currently trading 5.4% higher at HK$3.628 with a turnover of HK$7.2374 million. This ETF tracks the Hang Seng Biotechnology Index, covering leading companies in pharmaceuticals, biotechnology, and CRO (contract research organization) sectors. Its top five holdings include INNOVENT BIO (01801), BEONE MEDICINES (06160), WUXI BIO (02269), WUXI APPTEC (02359), and AKESO (09926).

Recently, several leading innovative drug companies have reported explosive earnings for the first half of 2026. WUXI APPTEC achieved second-quarter revenue exceeding RMB 16.4 billion, with both quarterly revenue and profit hitting historic highs. The company attributed the strong performance to greater success from multiple client products and its CRDMO model, while also raising its full-year guidance across the board. BEONE MEDICINES posted a net profit attributable to shareholders of RMB 3.271 billion in the first half, up 627.1% year-on-year, and raised its full-year revenue expectations. INNOVENT BIO saw product revenue grow more than 55% year-on-year in the first half, with its comprehensive product pipeline maintaining strong momentum.

Industrial Securities noted that the global innovative drug and supply chain sectors remain at a high level of activity, with multiple overseas multinational corporations and CXO companies issuing positive interim results and raising their full-year 2026 guidance. This confirms that global R&D investment in innovative drugs and supply chain demand remain in a strong cycle. CITIC Securities believes the pharmaceutical sector is showing a K-shaped divergence, with innovation-driven segments like biotech and CXO likely to recover first. The firm recommends focusing on leading companies with rich R&D pipelines and strong commercialization capabilities.