Market Performance - The Hang Seng Hong Kong Stock Connect Innovative Drug Select Index (HSSCPB) rose by 1.13% as of September 2, 2025, with notable increases in stocks such as 3SBio (01530) up 4.34% and BeiGene (06160) up 3.65% [3] - The Hong Kong Innovative Drug Select ETF (520690) increased by 1.90%, marking its third consecutive rise, with a latest price of 1.07 yuan [3] - The Hang Seng Healthcare Index (HSHCI) saw a 0.77% increase, with stocks like 1Life Healthcare (02522) rising by 5.13% [6] - The Hang Seng Healthcare ETF (513060) also rose by 0.96%, achieving a three-day consecutive increase, with a latest price of 0.74 yuan [6] Policy and Regulatory Developments - During the "National Drug Safety Publicity Week" in 2025, it was announced that 210 innovative drugs and 269 innovative medical devices were approved during the 14th Five-Year Plan period, indicating accelerated growth [7] - The approval of 28 innovative traditional Chinese medicine drugs has also been noted, with significant increases in clinical and market applications [7] Company Developments - On September 1, 2025, Hengrui Medicine's innovative drug "Zemiglo" was approved for market, becoming the first domestically developed EZH2 inhibitor for treating relapsed or refractory peripheral T-cell lymphoma [7] - Junshi Biosciences received FDA approval for its self-developed biosimilar HLX14, covering eight indications, marking a significant step in its international expansion [7] Institutional Insights - The approval of innovative drugs and devices, along with the advancements in traditional Chinese medicine, is expected to enhance the valuation of the pharmaceutical sector [8] - Hengrui's approval of the first domestic EZH2 inhibitor fills a treatment gap in relapsed/refractory peripheral T-cell lymphoma, adding a new commercial example for innovative drugs [8] - Junshi's FDA approval for multiple indications validates the pathway of "product internationalization leading to revenue and valuation enhancement" [8] ETF Performance and Metrics - The Hong Kong Innovative Drug Select ETF (520690) saw a significant scale increase of 54.91 million yuan over the past week, ranking in the top half among comparable funds [9] - The ETF experienced a net outflow of 5.19 million yuan recently, but had three days of net inflow totaling 41.35 million yuan over the past five trading days [9] - The ETF's highest monthly return since inception was 1.42%, with a maximum drawdown of 7.61% [10] Valuation Metrics - The Hang Seng Healthcare ETF's latest price-to-earnings ratio (PE-TTM) is 30.84, indicating it is at a historical low compared to the past three years [12] - The top ten weighted stocks in the Hang Seng Healthcare Index account for 62.89% of the index, with companies like BeiGene (06160) and Innovent Biologics (01801) among the leaders [12]