Core Insights - The Hong Kong innovative drug sector is experiencing a rebound, with the Hong Kong Stock Connect innovative drug ETF (520880) rising by 1.66% at one point [1] - Major stocks such as Sanofi, Kelun-Biotech, and Hengrui Medicine saw increases of over 4%, while stocks like China Resources Pharmaceutical and Fuxing Pharmaceutical faced adjustments [1] Industry Trends - The innovative drug industry is shifting from a quantity-driven approach to a quality-driven one, entering a phase where product efficacy is paramount [3] - There is a growing focus on differentiated and internationalized pipelines, with an emphasis on products that can generate profits [3] - Oral peptide drugs, such as PCSK9 inhibitors and IL-23 antagonists, are showing promising clinical data and have the potential to reshape treatment paradigms [3] Market Dynamics - Chinese innovative pharmaceutical companies are deeply involved in global drug development, with the number of clinical trials ranking first worldwide, particularly in cell therapy, ADCs, and bispecific antibodies [3] - By 2024, it is expected that 38% of globally approved new drugs will have their first launch in China, highlighting the country's growing importance in the pharmaceutical landscape [3] - The upcoming expiration of patents for multinational corporations (MNCs) is creating opportunities for Chinese assets, which are becoming significant sources for important projects [3] ETF Performance - The Hong Kong Stock Connect innovative drug ETF (520880) and its linked funds are passively tracking the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, which includes top-weighted stocks like BeiGene, China Biologic Products, and Innovent Biologics [3]