Since May, the Hong Kong-listed innovative drug sector has continued to gain momentum, with clear signs of capital returning. Wind data shows that several Hong Kong-listed innovative drug ETFs have recently received consecutive net subscriptions. At the same time, the approaching ASCO (American Society of Clinical Oncology) annual meeting, the implementation of new drug pricing policies, and the emergence of a profitability inflection point for the sector have combined to highlight the allocation value of Hong Kong's innovative drug sector. Against this backdrop, the FG Hong Kong Connect Healthcare Preferred Mixed Securities Investment Fund (Class A: 027041, Class C: 027042) officially launched on May 11th. This fund focuses on the Hong Kong Connect healthcare sector and is managed by fund manager Zhao Wei, who possesses a composite background in pharmaceutical R&D and financial investment, aiming to capture the opportunities from valuation repair and earnings growth in Hong Kong-listed innovative drugs.

Hong Kong Innovative Drug Value Highlights, Multiple Tailwinds Resonate Currently, Hong Kong-listed innovative drugs are experiencing a multi-faceted resonance of valuation, profitability, policy, and event catalysts, gradually opening a medium-to-long-term investment window. From a valuation perspective, the Hong Kong innovative drug sector has corrected for over 6 months since its September 2025 high, with valuations falling back to a reasonable range. Wind data shows that as of May 8, 2026, the five-year valuation percentile of the Hang Seng Hong Kong Connect Innovative Drug Index has dropped from 98% to 55%. From a profitability perspective, the industry is transitioning from the R&D investment phase to the profit realization phase. In 2025, the total revenue of Hong Kong's Chapter 18A companies (pre-revenue biotech companies listed under Chapter 18A of the Hong Kong Exchange's Listing Rules) exceeded 96.5 billion yuan, coupled with leading companies surpassing 100 billion yuan in revenue for the first time, and 15 pharmaceutical companies turning losses into profits. From a policy standpoint, catalysts are also intensive. The 2026 Government Work Report designated biopharmaceuticals as a emerging pillar industry, and the new drug pricing policy issued in April provides clear price protection for high-level innovative drugs. Meanwhile, with the ASCO annual meeting approaching, the number of studies involving Chinese pharmaceutical companies selected has hit a record high. The concentrated release of cutting-edge clinical data is expected to bring a phased market catalyst for the Hong Kong innovative drug sector and drive a re-evaluation of the value of the R&D pipelines of related companies.

Against this backdrop, actively managed products dedicated to the Hong Kong healthcare sector offer greater allocation advantages. The FG Hong Kong Connect Healthcare Preferred fund invests no less than 80% of its non-cash assets in Hong Kong Connect-listed stocks and healthcare-themed stocks, with a clear focus on two directions: the industrial upgrade of innovative drugs and the overseas expansion of medical devices. In the innovative drug field, the fund focuses on high-quality companies with global competitiveness, using progress in overseas licensing (license-out) of innovative drugs, the strength of overseas partners, and overseas commercialization potential as core value metrics. It emphasizes high-certainty areas such as ADCs, bispecific antibodies, and combination therapies. In the medical device field, it focuses on leading companies experiencing "technological breakthroughs resonating with overseas expansion," selecting those with core technologies meeting international standards, clear overseas expansion paths, and those that have already achieved stable overseas revenue and market share growth. It primarily covers sub-sectors such as electrophysiology, endoscopy, and surgical robots, aiming to capture the dual benefits of industrial upgrading and global expansion.

Industry + Finance Composite Perspective: Zhao Wei Precisely Captures Innovative Drug Investment Opportunities Investing in Hong Kong-listed innovative drugs requires high expertise and presents significant identification challenges. Fund managers with practical industry knowledge and frontline R&D experience hold an advantage in investment decision-making. The proposed fund manager, Zhao Wei, has 15 years of experience in the securities industry and over 8 years of fund management experience. He previously worked at GlaxoSmithKline, deeply involved in innovative drug R&D, possessing a rare composite background in industry and finance. This enables him to accurately screen innovative drug companies with genuine clinical value and commercialization potential. In investment management, Zhao Wei adheres to a core philosophy of focusing on true innovation and selecting individual stocks, emphasizing the layout of high-quality companies with global competitiveness, excellent management, and reasonable valuations. He employs a strategy of concentrated holdings and long-term investment, accompanying companies through their value growth from clinical breakthroughs to commercial success.

Zhao Wei's profound investment research experience and mature investment framework are fully reflected in his performance in managing healthcare sector funds. Fund periodic reports show that as of March 31, 2026, the FG Pharmaceutical Innovation Fund A achieved a one-year net value growth rate of 31.54%, compared to its benchmark return of 14.33% over the same period. The FG Precision Medicine Fund A achieved a one-year net value growth rate of 21.52%, compared to its benchmark return of 6.94% over the same period, with both funds delivering significant alpha. Morningstar data shows that as of March 31, 2026, under the Morningstar Sector Equity - Healthcare classification, the FG Pharmaceutical Innovation Fund A ranked in the top 5% (12/298) for one-year performance, and the FG Precision Medicine Fund A ranked in the top 8% (14/182) for three-year performance. The impressive returns and high peer rankings demonstrate his excellent investment management capabilities in the healthcare sector.

At the current juncture, the industrial upgrade and overseas expansion process of Hong Kong's healthcare sector continues to accelerate. The sector's investment value is supported by multiple fundamental factors, with a clear long-term growth logic. The FG Hong Kong Connect Healthcare Preferred fund, with the Hong Kong healthcare sector at its core, leverages Zhao Wei's deep industry insights and excellent active management capabilities to precisely position high-quality targets in innovative drugs and medical devices. For investors optimistic about the globalization trend of China's innovative drugs and looking to capture opportunities in the Hong Kong healthcare sector, this fund represents a quality allocation option worthy of attention at this time.

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