In recent years, the biotechnology industry has entered a phase of rapid growth, becoming a key sector driving global technological revolution and industrial transformation, continuously attracting accelerated investment from domestic and international capital. At the beginning of the Year of the Horse, the Huatai-PineBridge Biotech ETF (Subscription Code: 513933, Trading Code: 513930) officially commenced trading on February 24, 2026, providing investors with a convenient tool for one-click allocation to core Hong Kong-listed biotech assets.

Focusing on industry innovation leaders, the ETF emphasizes innovative drugs and CXO segments. As a leading global healthcare financing hub, Hong Kong hosts a large number of biotech companies. The Hong Kong Stock Exchange's Chapter 18A listing rules allow pre-profit biotech firms with at least one core product past the concept stage to list, making the Hong Kong market a gathering place for innovative Chinese biotech companies with significant scarcity advantages. This positions Hong Kong-listed biotech ETFs as quality options for investors seeking exposure to Chinese pharmaceutical assets.

The Huatai-PineBridge Biotech ETF closely tracks the Hang Seng Biotech Index (HSBIO.HI), which selects the 30 largest Hong Kong-listed biotech companies eligible for Southbound Stock Connect. The index primarily comprises mid- to large-cap stocks, with an average market capitalization of HKD 83.5 billion, significantly higher than some major Hong Kong healthcare indices.

Regarding business composition, the index heavily concentrates on innovative drugs and CXO, with combined weightings approaching 90%, highlighting its innovative focus. It also includes promising companies in cutting-edge fields like AI-enabled healthcare, capturing core innovation segments while reflecting the overall development trends of China's biotech industry.

Thanks to its high innovative drug and CXO exposure and distinct technological innovation attributes, the Hang Seng Biotech Index has outperformed during the 2025 Hong Kong healthcare sector rally. As of February 6, 2026, the index gained 76.52%, surpassing the Hang Seng Index (32.40%), the Hang Seng Healthcare Index (67.97%), the Stock Connect Healthcare Index (34.21%), and the Hang Seng Stock Connect Innovative Drug Index (70.43%), demonstrating strong investment value and growth potential.

Notably, as of February 6, 2026, the index's PE ratio (TTM) was 29.60 times, at the 19.30th percentile since its launch on December 16, 2019, indicating a relatively low valuation level. This suggests the Hong Kong biotech sector, represented by this index, may currently offer an attractive entry point.

Looking ahead to the Year of the Horse and beyond, China's biotech industry is experiencing growth driven by policy support, technological breakthroughs, and capital influx. The Huatai-PineBridge Biotech ETF is positioned to help investors efficiently capture these industry opportunities.

Policies have shifted from cost containment to encouraging high-quality innovation. National reimbursement drug list adjustments increasingly favor innovative drugs, complemented by a commercial insurance innovative drug catalog, creating a multi-payer system that expands growth potential. Technologically, domestic innovative drugs are frequently presented at international conferences like ASCO and ESMO, showcasing breakthrough clinical data and gaining global recognition. Capital-wise, the HKEx's "Tech Enterprise Fast Track" launched on May 6, 2025, eases listing standards for pre-profit biotech firms, potentially bringing more innovative companies to the market.

After years of technological accumulation, China's biotech R&D capabilities are highly recognized globally, potentially initiating a new growth cycle centered on innovation and global expansion. Industry data shows Chinese companies accounted for seven of the top ten global pharmaceutical deals by value in 2025, with overseas expansion extending from oncology to autoimmune diseases and metabolic disorders. In 2025, the total BD transaction value for domestic innovative drugs reached USD 135.7 billion, a 161% year-on-year increase, with both transaction size and global share (49%) hitting record highs, surpassing the US for the first time to rank first globally.

Additionally, the launch of Hang Seng Biotech Index futures on November 28, 2025, made it the only Hong Kong healthcare index with futures derivatives, establishing a complete ecosystem including ETPs, index funds, and futures. This enhances the index's appeal and positions the Huatai-PineBridge Biotech ETF as a premium tool for Hong Kong healthcare sector allocation.

As an early ETF provider, Huatai-PineBridge Fund has over 19 years of index investment experience, with recognized expertise in broad-market, dividend, and thematic strategies, winning the "Passive Investment Golden Bull Fund Company" award in 2025. In the healthcare sector, the firm has built a comprehensive "toolkit" covering key industry segments, having launched the Innovative Drug ETF, Healthcare ETF, Traditional Chinese Medicine ETF, and Hang Seng Innovative Drug ETF. The new Biotech ETF further enriches its product lineup, offering investors more diversified and precise allocation tools.

Note: The subscription fee for the Huatai-PineBridge Biotech ETF is 0.30% for subscriptions under 1 million units, and a flat fee of CNY 1,000 for larger subscriptions. Brokerage commissions for redemptions are up to 0.50%, including exchange and registry fees. Brokerage commissions for subscriptions/redemptions of other Huatai-PineBridge healthcare ETFs are also up to 0.5%. Information is based on legal documents as of February 8, 2026. Secondary market trading commissions are set by brokers, with stamp duty exempted.

Risk Warning: Investments involve risks. Investors should assess their risk tolerance and choose suitable products based on relevant regulations. Past performance does not indicate future results. Other funds managed by the manager do not guarantee this fund's performance. Investors should read the fund contract, prospectus, and product summary carefully. As the fund invests in overseas markets, it is exposed to additional risks like currency fluctuation and overseas market volatility. The index is compiled and published by Hang Seng Indexes Company Limited, which owns the index. While Hang Seng Indexes Company Limited takes measures to ensure index accuracy, it does not guarantee it and accepts no liability for any errors.