On September 29, the Hong Kong stock market retreated, but innovative drugs led gains against the broader trend. The Hang Seng Stock Connect Innovative Drug ETF (520880) tracking index, with 100% innovative drug exposure, rose as much as 3.8% intraday before closing up 2.65%, decisively ending a five-day losing streak. The Hang Seng Stock Connect Healthcare ETF (159137) tracking index, heavily weighted in the innovative drug industry chain, also closed in positive territory. There were two major highlights in the sector during the session.

First, Akeso (ASX: 09926) surged 15.54% in a single day, reclaiming its half-year line after four months. The core catalyst was undoubtedly AstraZeneca's US$2 billion strategic investment in Summit, Akeso's overseas partner. The central asset in the deal is ivonescimab, developed by Akeso and licensed to Summit in 2022 for a potential total deal value of up to US$5 billion. Ivonescimab is a globally first-in-class PD-1/VEGF bispecific antibody entirely independently developed by Akeso. Analysts noted that AstraZeneca's entry coincides with the window in which ivonescimab just released key overall survival (OS) data and once again defeated Merck's Keytruda in a head-to-head trial, a signal of significant importance.

Second, Hengrui Pharma (ASX: 01276) secured a deal worth up to US$2.6 billion, with its shares surging over 5% in a straight line in the afternoon. At midday, Hengrui Pharma announced that it had reached a US$2.6 billion cooperation agreement with Novo Nordisk for an oral metabolic asset — a once-weekly oral GLP-1/GIP dual receptor agonist in Phase I clinical trials, HRS-1596 — with a US$300 million upfront payment. Zheshang Securities noted that Chinese innovative drug assets continue to gain recognition from global MNCs. It is bullish on the "dollarization" valuation reshaping of Chinese innovative drug assets, and the more elastic "new markets" overseas may create a more developmental "new valuation" for domestic innovative drugs. It recommends focusing on the innovative drug sector.

For full-chain exposure to innovative drugs, two T+0 trading tools are worth watching: Hang Seng Stock Connect Innovative Drug ETF (520880): its tracking index allocates 100% to innovative drug R&D companies, with 70% of its position betting on leading innovative drug R&D players. Off-exchange feeder fund: 025221. Hang Seng Stock Connect Healthcare ETF (159137): its tracking index is heavily weighted in the innovative drug industry chain, with nearly 70% AI pharma exposure and over 50% CXO exposure. Off-exchange feeder fund: 026922.

Data Source Public information from Shanghai, Hong Kong and Shenzhen stock exchanges, China Securities Index Company, Hang Seng Index Company, etc. Weight data as of August 31, 2026.

Institutional View Zheshang Securities, September 29, 2026, "Major Innovative Drug BD Deals Land Densely: Large Transactions Frequent, Global Pricing Power of Chinese Innovative Drug Assets Continues to Rise."

Notes on "AI Pharma Exposure" and "CXO Exposure" The Hang Seng Stock Connect Healthcare Theme Index tracked by Hang Seng Stock Connect Healthcare ETF (159137) covers 17 AI pharma-related constituent stocks (including pure AI pharma platforms, AI+CRO, and innovative drug companies deploying AI pharma), with a combined weight of 69.52%, of which CXO companies account for 55%.

Fund Fee Rates ETF funds do not charge sales service fees. When investors subscribe or redeem fund shares, the subscription and redemption agency broker may charge a commission of no more than 0.5%, which includes relevant fees charged by stock exchanges, registration institutions, etc. For fund fee rates, please refer to the legal documents of each fund.

Special Reminder The risk level assessed by the fund manager for Hang Seng Stock Connect Healthcare ETF (159137) and its feeder fund, and Hang Seng Stock Connect Innovative Drug ETF (520880) and its feeder fund, is R4-Medium-High Risk, suitable for aggressive (C4) and above investors.

Risk Disclosure The index constituent stocks mentioned in this article are for display purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of the content of this article. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Past performance of a fund does not represent its future performance. Fund investment involves risks. MACD golden cross signals have formed, and these stocks are performing well!