Hengrui Pharma(SH:600276) Sou Hu Cai Jing·2026-02-24 03:40Core Viewpoint - The Hong Kong stock market's innovative drug ETF (159570) is experiencing a pullback, with several key stocks in the index declining significantly, indicating a potential shift in market sentiment towards the innovative pharmaceutical sector [1][4]. Group 1: Market Performance - As of 11:07, major stocks in the Hong Kong innovative drug ETF have mostly retreated, with notable declines: CSPC Pharmaceutical down over 5%, China Biologic Products down over 3%, and Innovent Biologics down over 4% [1]. - The ETF opened with a gain of over 2% but later experienced a decline of 0.62%, with trading volume surpassing 700 million HKD, indicating active market participation despite the pullback [4]. - The ETF has seen a net inflow of over 340 million HKD in the past five days, with its latest scale exceeding 25.2 billion HKD, leading among similar funds [4]. Group 2: Industry Developments - The innovative drug business development (BD) remains robust, with companies like Rego Biopharma and Qinhai Biotech making significant strides, and the total upfront payment for innovative drug BD transactions in China exceeding one-third of the total for 2025 by mid-February [3]. - Key innovative drug pipelines have achieved milestones overseas, such as CSPC's SYH2053 entering Phase III trials and Hanmi Pharmaceutical's approval for marketing in the EU [3]. - The FDA has reformed its drug approval policy, allowing a single pivotal trial plus confirmatory evidence as the default standard for new drug approvals, which is expected to enhance efficiency and reduce costs in drug development [6][9]. Group 3: Regulatory Changes - The National Health Commission has revised the essential drug catalog management measures for the first time in 11 years, indicating potential changes in the essential drug catalog and signaling a more rational policy environment [5]. - The overall atmosphere for drug procurement has been stable, with high rates of contract renewals and a focus on quality and pricing, reflecting a shift towards more rational procurement practices [5]. Group 4: ETF Composition - The Hong Kong innovative drug ETF (159570) is fully invested in innovative drugs, with the top ten constituent stocks accounting for over 74% of the index, highlighting its concentrated exposure to leading companies in the sector [10]. - The ETF has shown a significant increase of over 90% year-to-date, outperforming other indices in the Hong Kong pharmaceutical sector [11][12].