On the first trading day of August (August 3), the Hong Kong Stock Connect innovative drug sector continued its downturn, with leading stocks such as 百济神州, 石药集团, 康方生物, and 中国生物制药 all falling by more than 2%, while 映恩生物-B and 荣昌生物 dropped over 4%. The 100% innovative drug R&D-focused fund, 港股通创新药ETF华宝 (520880), declined more than 1.8% during intraday trading, breaking below the 60-day moving average and losing support across all major averages. However, the fund maintained a premium throughout the session, indicating relatively strong buying demand.

On the news front, according to data from Medsci, the global innovative drug primary market saw 505 financing events in the first half of 2026, a year-on-year increase of 6.1%. Total financing amount reached $267.5 billion, up 58.5% year-on-year. In China, 243 financing events occurred, up 16.3% year-on-year, with a total amount of $58.1 billion, a surge of 79.1% year-on-year. Overseas, 262 events took place, a 1.9% decline in event count, but the financing amount rose 53.6% to $209.4 billion. In the first half of 2026, among the hot tracks in innovative drugs, financing enthusiasm surged for new molecular entities such as antibody drugs, nucleic acid drugs, and radiopharmaceuticals.

Northeast Securities stated that the core logic for the overseas innovative drug industry chain remains unchanged: sustained high prosperity transmission, intensive share buybacks forming a bottom, and a gradually improving multi-payment system. The firm continues to view innovative drugs and medical devices as the medium to long-term main theme. From a secondary market perspective, CICC's latest strategy indicates that in terms of the order of recovery probability, sectors like broad external demand/cyclicals/innovative drugs and internet face relatively less resistance, while consumption ranks lower. Therefore, balanced allocation should tilt towards areas with less resistance and slightly higher recovery probability.

For bargain-hunting in Hong Kong-listed healthcare core assets, two T+0 instruments are highlighted: For a pure innovative drug play, look to 港股通创新药ETF华宝 (520880), which excludes CXO and invests 100% in innovative drug R&D companies, with over 70% of positions allocated to innovative drug leaders. For a combined "innovative drug + CXO" approach, choose 港股通医疗ETF华宝 (159137), which holds 48% CXO, 20% innovative drugs, and the remaining 30% in medical devices and AI healthcare leader stocks.

Data source: Shanghai, Shenzhen, and Hong Kong Stock Exchanges, CSI Index Company, Hang Seng Index Company. Institutional views source: Northeast Securities, July 27, 2026, "Northeast Medical & Health Weekly: Continuing to View Innovative Drugs and Devices as Medium to Long-Term Theme, AI Healthcare Has Entered a Value Realization Window." CICC Strategy, July 29, 2026, "How Much Hong Kong Stock Do Mutual Funds Still Hold? — 2Q26 Mutual Fund Holdings Analysis."

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