On Friday (September 5), the pharmaceutical sector regained momentum with A-shares and H-shares resonating in tandem, as innovative pharmaceuticals once again led the charge!
A-share innovative pharmaceutical stocks staged a strong counterattack, with the Pharmaceutical ETF (562050) surging 3.36% intraday to hit a record closing high. Component stock Zai Lab-U soared 16.42%, while Sunshine Guojian rose 11.8%. The healthcare sector stabilized with CXO leading gains, as Joinn Laboratories hit the daily limit up, and the largest A-share Healthcare ETF (512170) climbed 2.93% to reclaim its 20-day moving average.
Hong Kong innovative pharmaceutical stocks showed even stronger gains with a powerful rebound. The Hong Kong Stock Connect Innovative Pharmaceutical ETF (520880), which combines high purity with high elasticity, traded higher throughout the day, surging 4.52% intraday to close at daily highs, setting a new closing high since listing just one day later! Trading was active with heavy volume reaching 713 million yuan.
All 29 innovative pharmaceutical concept stocks covered by the Hong Kong Stock Connect Innovative Pharmaceutical ETF (520880) closed in positive territory, with Cspc Pharmaceutical soaring 18.24% to reach historical highs, while Kinnov Therapeutics-B and XtalPi surged 14.53% and 12.18% respectively.
Notably, starting Monday (September 8), the "purification" revision of the Hang Seng Hong Kong Stock Connect Innovative Pharmaceutical Select Index tracked by the Hong Kong Stock Connect Innovative Pharmaceutical ETF (520880) will officially take effect. The index will completely exclude CXO companies and focus precisely on innovative pharmaceutical R&D enterprises, becoming a 100% pure innovative pharmaceutical index.
Year-to-date, the underlying index of the Hong Kong Stock Connect Innovative Pharmaceutical ETF (520880) has shown maximum offensive power among similar indices. As of September 3, its cumulative gain reached 118.95%, leading all innovative pharmaceutical indices. Following this index revision that excludes CXO companies and upgrades to a pure innovative pharmaceutical index, it is expected to demonstrate even sharper performance during the upward cycle of the innovative pharmaceutical industry.
The Hang Seng Hong Kong Stock Connect Innovative Pharmaceutical Select Index has a base date of December 31, 2020, and was launched on July 17, 2023. Since the index launch, complete annual returns have been: 2021: -22.72%; 2022: -16.48%; 2023: -19.76%; 2024: -14.16%. Index constituent adjustments are made according to index methodology rules, and historical backtested performance does not predict future index performance.
Looking ahead, intensive catalysts for innovative pharmaceuticals suggest continued momentum. Tomorrow (September 6), the 2025 World Conference on Lung Cancer (WCLC) will open, with leading innovative pharmaceutical companies including CStone Pharmaceuticals and BeiGene expected to release latest research developments during the conference. Additional major conferences including the European Society for Medical Oncology Congress and American Society of Hematology Annual Meeting are scheduled thereafter.
Founder Securities notes that the strong thematic nature of innovative pharmaceuticals remains unchanged, with September potentially marking the beginning of a new wave in innovative pharmaceutical stocks, based on several factors: First, interim report clearance re-establishes full-year performance expectations; Second, key academic conferences approach with Chinese data likely to continue dominating; Third, strong individual stock catalysts as multiple pharmaceutical companies' key data readouts are scheduled for September-October; Fourth, continued BD deal achievements with Q4 expected to show sustained realization patterns.
According to Shanghai and Shenzhen stock exchange data, as of September 4, 2025, Healthcare ETF assets under management reached 26.325 billion yuan, making it the largest pharmaceutical and healthcare ETF in the market (1/50).
Reminder: Recent market volatility may be significant, and short-term gains/losses do not predict future performance. Investors must make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position sizing and risk management.
Risk Disclosure: The Hong Kong Stock Connect Innovative Pharmaceutical ETF passively tracks the Hang Seng Hong Kong Stock Connect Innovative Pharmaceutical Select Index, which has a base date of December 31, 2020, and was launched on July 17, 2023. Index constituent adjustments are made according to index methodology rules. Individual stocks mentioned in this article are for illustrative purposes only and do not constitute investment advice of any form, nor do they represent holdings information or trading activities of any fund managed by the fund manager. The fund manager assesses Healthcare ETF and Pharmaceutical ETF as R3-Medium Risk, suitable for balanced (C3) and above investors, while Hong Kong Stock Connect Innovative Pharmaceutical ETF is assessed as R4-Medium-High Risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, predictions, charts, indicators, theories, and any form of expression) is for reference only, and investors must take responsibility for any independent investment decisions. Furthermore, any views, analyses, and predictions in this article do not constitute investment advice of any form to readers, nor do they bear any responsibility for direct or indirect losses arising from the use of this content. Performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Past performance does not represent future results. Fund investment involves risks and should be approached with caution.
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