After a 7% surge in a single day, it continues to rise against the market trend. The Hong Kong Stock Connect's innovative drugs may enter a golden window period.

Ask AI · How does the superimposition of three overlapping cycles shape the golden investment window?

On April 2nd, the Hong Kong stock market generally retreated, but the Hong Kong biotech sector rebounded against the trend again. The Hong Kong Stock Connect Innovation Drug ETF Huabao (520880), which is 100% focused on innovative drug development, surged nearly 7% yesterday and hit its largest single-day increase since listing. Today, it continued to rise against the trend by 0.75%. Recently, the Hong Kong Stock Connect biotech sector has frequently rebounded against the trend, showing a strong bottoming and rebound momentum.

Multiple institutions have indicated that the current innovative drug sector may be in a golden window period characterized by the superimposition of “performance realization, accelerated overseas expansion, and conference catalysts.” In the secondary market, the Hong Kong pharmaceutical sector has entered a phase of adjustment since September last year, with valuation risks sufficiently released. It is currently at a low point in this phase, and high attention is recommended for current allocation opportunities.

Strong performance exceeding expectations is driving the market sharply. Among the 48 constituent companies disclosed in the 2025 annual report of the Hong Kong Stock Connect Innovation Drug ETF Huabao (520880), 29 are expected to be profitable in 2025, 26 have double-digit or more growth in net profit year-on-year, 10 have growth rates exceeding 100%, with CSPC Pharmaceutical surging over 11 times, and Innovent Biologics increasing over 9 times. Additionally, according to the National Medical Products Administration, in the first three months of 2026, China’s innovative drug licensing transactions exceeded $60 billion, nearly half of the total for 2025, indicating a clear acceleration in China’s innovative drug export efforts.

Preemptively position for the Hong Kong pharmaceutical rebound, focus on the Hong Kong Stock Connect Innovation Drug ETF Huabao (520880), which is 100% invested in innovative drug R&D companies. The top ten holdings account for over 70%, with prominent leading attributes. The underlying assets are Hong Kong stocks, with high elasticity and T+0 trading.

Daily Economic News