Core Viewpoint - The Hong Kong innovative drug-themed ETFs have shown significant performance, with the top 10 ETFs all increasing by over 5%, indicating strong market interest in the innovative drug sector [1][2]. Group 1: ETF Performance - The Hang Seng Innovative Drug ETF (520500) led the gains with a 5.73% increase, reaching a value of 1.864 [2]. - Other notable ETFs include the Hong Kong Innovative Drug ETF with a 5.28% increase and the Hong Kong Stock Connect Innovative Drug ETF with a 5.26% increase [2]. - Among the top-performing stocks, Kangfang Biotech (09926.HK) and BeiGene (06160.HK) both rose over 10%, while Innovent Biologics (01801.HK) and CSPC Pharmaceutical Group (01093.HK) increased by over 3% [2]. Group 2: Market Trends - A total of 25 ETFs have increased by over 40% this year, with 24 of them being related to the Hong Kong biopharmaceutical theme, highlighting the sector's strong performance [3]. - The Hong Kong Innovative Drug Index has risen over 70% since the beginning of the year, significantly outperforming the Hang Seng Index, reflecting high market recognition of the innovative drug industry [4]. Group 3: Policy and Market Drivers - The continuous optimization of the policy environment has positively impacted market sentiment, with the National Healthcare Security Administration initiating adjustments to the 2025 National Medical Insurance Directory, which includes innovative drugs with high clinical value [5]. - The trend of Chinese innovative drugs going global has reached historic breakthroughs, indicating an increase in global competitiveness [5]. - Fund managers express optimism about the innovative drug sector, citing strong clinical data and ongoing product commercialization as key factors for future performance [6].