Core Viewpoint - The surge in innovative drug transactions, highlighted by a significant $10 billion business development deal by Innovent Biologics, has ignited interest in the innovative drug sector, despite a downturn in the secondary market [1]. Group 1: Market Activity - On October 22, Innovent Biologics recorded a trading volume of 6.288 billion HKD, marking a historical high [1]. - The Hong Kong Stock Connect Innovative Drug ETF (520880) attracted a net inflow of 75.86 million HKD on the same day, continuing a trend of four consecutive days of net inflows totaling over 123 million HKD [1][2]. Group 2: Investment Sentiment - Analysts suggest that while the innovative drug sector has been affected by market risk aversion, the current valuation presents a compelling investment opportunity [1]. - The concentration of business development (BD) transactions in Q4 historically alleviates market concerns, indicating a potential for sustained activity in the sector as the year-end approaches [2]. Group 3: Fund Performance - The Hong Kong Stock Connect Innovative Drug ETF (520880) is designed to track the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, which exclusively includes innovative drug R&D companies, with over 70% of its holdings in large-cap leaders [3][4]. - As of the end of September, the index has shown a year-to-date increase of 108.14%, outperforming other innovative drug indices [4][5]. - The ETF has a total fund size of 1.806 billion HKD and has recorded an average daily trading volume of 493 million HKD since its inception, making it the largest and most liquid ETF in its category [5].
信达生物惊天BD，创新药出海热潮重启？资金火速进场，港股通创新药ETF（520880）单日吸金超7500万元！