Xin Lang Ji Jin·2025-09-18 02:23Core Viewpoint - The Hong Kong Stock Connect Innovation Drug ETF (520880) has shown a rebound, indicating strong buying interest in innovative drug companies, with significant trading volume and price increases among key constituents [1][3]. Group 1: Market Performance - The Hong Kong Stock Connect Innovation Drug ETF (520880) experienced a price increase of over 2% shortly after market opening, with trading volume exceeding 1 billion yuan within 20 minutes [1]. - The ETF has been trading at a premium, reflecting strong demand, and has attracted capital for 12 consecutive days [3]. - The ETF's index has achieved a year-to-date increase of 119.75%, outperforming other innovative drug indices [4]. Group 2: Policy and Industry Developments - The National Medical Products Administration has introduced a "30-day review and approval channel" for clinical trial applications of qualifying innovative drugs, aimed at accelerating drug development [3]. - The industry is witnessing significant changes in seven innovative drug sectors, including next-generation IO, weight loss, small nucleic acids, and others, which are expected to create substantial market opportunities [3]. Group 3: Financial Performance - The Hong Kong innovative drug sector reported a net profit of 1.8 billion yuan in the first half of the year, marking a turnaround from losses to profitability [3]. - The innovative drug industry is entering a new cycle driven by profitability, indicating a clear inflection point in the fundamentals [3]. Group 4: ETF Composition Changes - The ETF has undergone a "purification" revision, removing CXO companies and focusing solely on 14 innovative drug research and development firms, enhancing its representation of the sector [4]. - The ETF is the largest and most liquid among its peers, with a fund size exceeding 1.7 billion yuan and an average daily trading volume of 521 million yuan since its inception [5].