Core Viewpoint - The innovative pharmaceutical sector in Hong Kong experienced significant fluctuations, with major companies like CSPC Pharmaceutical and Hansoh Pharmaceutical seeing declines of over 8%, while BeiGene dropped more than 6% [1] Group 1: Market Performance - Multiple Hong Kong innovative pharmaceutical ETFs fell by over 3% due to market influences [1] - Specific ETFs reported declines, such as the Hang Seng Innovative Pharmaceutical ETF down 4.41% and the Hong Kong Innovative Pharmaceutical ETF down 4.06% [2] Group 2: Future Outlook - Some brokerages suggest that the long-term bullish trend for innovative pharmaceuticals may not be over, as the commercialization value of innovative drug assets driven by Chinese engineers has yet to be fully realized [2] - The valuation of the Hong Kong innovative pharmaceutical sector is considered low, with a high certainty of business development (BD) landing numbers, indicating potential for future growth in areas like small nucleic acids and oral GLP-1 [2] - The ongoing high bidding and acquisition amounts in the sector reflect its explosive potential [2]

Core Viewpoint - The Hong Kong innovative drug sector experienced a significant drop, with companies like BeiGene, China Biologic Products, CSPC Pharmaceutical Group, and Innovent Biologics seeing declines of over 10% in early trading. However, the Hong Kong Innovative Drug ETF (159567) rebounded, indicating strong investor interest and a potential bottoming out in the market [1] Group 1: Market Performance - The Hong Kong innovative drug ETF (159567) opened low but saw a recovery, with a market price premium of nearly 1% [1] - The ETF recorded a net subscription of 904 million shares during intraday trading, reflecting strong demand from investors [1] Group 2: Industry Outlook - Analysts suggest that the long-term bullish trend for innovative drugs may not be over, as the commercialization value of innovative drug assets driven by China's engineering talent has yet to be fully realized [1] - The valuation of the Hong Kong innovative drug sector remains low, with a high number of business development (BD) deals that are both numerous and certain, indicating a robust future pipeline in areas like small nucleic acids and oral GLP-1 [1] - The performance of the innovative drug, CXO, and biopharmaceutical sectors has shown signs of recovery, with China's pharmaceutical industry now possessing global competitiveness [1] Group 3: Investment Opportunities - The Hong Kong Innovative Drug ETF (159567) tracks the Guozheng Hong Kong Stock Connect Innovative Drug Index, aiming to reflect the performance characteristics of listed companies in the innovative drug sector within the Hong Kong Stock Connect [1] - Investors can also access the Hong Kong Innovative Drug ETF feeder funds (Class A: 023929, Class C: 023930) for a streamlined investment approach to capitalize on the upward potential of the innovative drug sector [1]