Innovative drug stocks strengthened during the morning session. At the time of writing, HUTCHMED (00013) rose 9.02% to HK$22.96; 3SBIO (01530) increased 8.41% to HK$21.4; HENGRUI PHARMA (01276) advanced 5.45% to HK$65.75; INNOVENT BIO (01801) gained 5.42% to HK$82.7; and KEYMED BIO-B (02162) was up 5% at HK$50.4. The momentum follows a significant policy development outlined in the government work report delivered during the National People's Congress, which for the first time explicitly identified the biopharmaceutical industry as a national "emerging pillar industry." This classification places it alongside sectors such as integrated circuits, aerospace, and the low-altitude economy, signaling strong governmental support for accelerated industry upgrades.

According to Southwest Securities, several companies have recently announced collaboration and licensing agreements, validating their research and development capabilities. The total value of business development deals in the first two months of 2026 has already surpassed $50 billion, approaching 40% of the full-year 2025 total. Upfront payments exceeded $3 billion, also more than 40% of the 2025 figure, indicating a continuously improving fundamental outlook for the innovative drug sector. Bank of Communications International noted that corporate earnings previews are being released this week, suggesting investors focus on companies with better-than-expected financial results and clear profitability pathways, as solid earnings delivery may catalyze further sector gains.