On February 9, the Hong Kong stock market experienced a broad rebound, with the pharmaceutical sector continuing its recovery trend. IMMUNOTECH-B secured a major $8.85 billion business development deal, leading gains throughout the day with an intraday peak of 8.55% and closing up 7.42%. Leading stocks received a significant boost, with BeiGene rising over 3%, while CSPC Pharmaceutical Group, Sino Biopharmaceutical, and 3SBio followed with collective gains.

The HUABAO HANG SENG HONG KONG STOCK CONNECT INNOVATIVE DRUG SELECTION TRADING OPEN ENDED INDEX SECURITIES INVES (520880), which focuses entirely on innovative drug research and development, opened higher and reached an intraday increase of 2.75%, finally closing up 1.77% to mark a fifth consecutive positive session. It also moved above its 10-day moving average, with a full-day turnover of 381 million yuan.

On the evening of February 8, IMMUNOTECH-B announced a strategic collaboration with Eli Lilly to jointly advance the global development of innovative drugs in oncology and immunology. IMMUNOTECH-B will receive an upfront payment of $350 million and is eligible for up to $8.5 billion in milestone payments, plus tiered royalties on net sales outside Greater China.

The total transaction value of China's innovative drug license-out deals reached a record $135.7 billion in 2025. Since the beginning of 2026, major collaborations have frequently emerged. Besides IMMUNOTECH-B, the super deals between CSPC-AstraZeneca ($18.5 billion) in January and Rongchang-AbbVie ($5.6 billion) further validate the global value of domestic innovative drug pipelines.

Kaiyuan Securities pointed out that China's innovative drug sector is undergoing an international transition from "scale accumulation" to "value release," continuously entering a commercialization phase shifting from "pipeline expectations" to "performance delivery." The innovative drug segment has corrected for nearly two quarters. Long-term, many high-quality stocks show significant valuation advantages, suggesting increased attention at current levels.

Looking at the performance of the Hong Kong Stock Connect healthcare sector, AI healthcare and brain-computer interface concept stocks were relatively active. Heavyweight stocks led the gains, with JD Health, AliHealth, and Ping An Good Doctor each rising around 3%. The HUAXIA CSI HONG KONG STOCK CONNECT MEDICAL THEME TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (520510) recorded five consecutive positive daily sessions.

Currently, the penetration of AI healthcare in the consumer end is accelerating, with application scenarios expanding from intelligent consultations to chronic disease management, driving a revaluation of Hong Kong-listed internet healthcare platforms like AliHealth and JD Health.

CSC Financial noted that the overall innovation attributes of Hong Kong-listed medical device companies are strong, with some firms' innovative products having potential for license-out deals or acquisitions. Fundamentally, operating performance for most companies within the industry continues to improve, highlighting low valuation investment value. Event-wise, Mindray Medical and Coffey Medical are expected to list in Hong Kong this year, potentially increasing sector effects and investment opportunities in the Hong Kong medical device segment.

Capturing opportunities in the undervalued Hong Kong pharmaceutical sector via ETFs offers higher efficiency, greater elasticity, and T+0 trading.

For investing in innovative drugs, consider the HUABAO HANG SENG HONG KONG STOCK CONNECT INNOVATIVE DRUG SELECTION TRADING OPEN ENDED INDEX SECURITIES INVES (520880) and its off-exchange feeder fund (025221), which provides 100% exposure to innovative drug R&D companies. The top ten holdings account for over 73% of the portfolio, emphasizing its leading stock characteristics.

For healthcare investment, select the HUAXIA CSI HONG KONG STOCK CONNECT MEDICAL THEME TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (520510), which anchors medical innovation and encompasses hot concepts like brain-computer interface, AI healthcare, and internet pharmacies, while also covering leaders across the entire innovative drug industry chain.

MACD golden cross signals have formed, indicating positive momentum for several stocks.