Group 1 - The core viewpoint of the news highlights the significant inflow of funds into the Hong Kong innovative drug sector, particularly through the largest innovative drug ETF (513120), which has reached a record size of 140.98 billion CNY, with a net inflow of 29.28 billion CNY over the past month [1][2] - The ETF has shown strong liquidity, with an average daily trading volume of 76 billion CNY over the past month, benefiting from the T+0 trading mechanism, which facilitates efficient capital allocation [1] - Recent supportive policies from the National Healthcare Security Administration and the National Health Commission, including 16 measures to support the high-quality development of innovative drugs, are seen as catalysts for investment in the sector [1][2] Group 2 - The performance of the Hong Kong innovative drug ETF has been impressive, with a return rate of 97.69% over the past year, ranking it among the top ten non-currency ETFs in the market [2] - The index tracked by the ETF has a current price-to-earnings (P/E) ratio of 35.65, which is at the 18.8% percentile over the past five years, indicating strong valuation attractiveness [2] - The top ten weighted stocks in the index include major global innovative drug companies, capturing significant licensing revenue from international markets, with a 222% year-on-year increase in external licensing transactions expected by Q1 2025 [2] Group 3 - Market participants note that the Hong Kong innovative drug sector possesses characteristics of "scarcity and high elasticity," combined with policy benefits and low valuations, making it a compelling long-term investment opportunity [3] - The Hong Kong innovative drug ETF (513120) and its associated funds are effective tools for investors looking to gain exposure to the innovative drug industry [3]

Core Viewpoint - The Hong Kong innovative drug sector has shown remarkable performance, with several related indices having accumulated gains exceeding 40% this year. The article discusses the differences between two key indices: the Hang Seng Innovative Drug Index and the CSI Hong Kong Innovative Drug Index. Group 1: Sample Space - The Hang Seng Innovative Drug Index consists of the largest 40 companies related to innovative drug research, development, and production listed in Hong Kong, currently comprising 37 constituent stocks with an average market capitalization of approximately 44.7 billion [2] - The CSI Hong Kong Innovative Drug Index is based on the union of the sample spaces of the CSI Hong Kong 300 Index and the CSI Hong Kong Stock Connect Composite Index, currently comprising 36 constituent stocks with an average market capitalization of approximately 40.5 billion [3] Group 2: Industry Distribution - In the Hang Seng Innovative Drug Index, stocks are primarily concentrated in two industries: biotechnology (56.5%) and pharmaceuticals (43.5%) [5] - The CSI Hong Kong Innovative Drug Index has a more balanced distribution, with biopharmaceuticals (49%), chemical drugs (29.4%), pharmaceutical and biotechnology services (20.4%), and medical commerce and services (1.2%) [7] Group 3: Top Ten Weightings - The top ten weightings in the Hang Seng Innovative Drug Index account for 71.47%, with notable companies like Innovent Biologics (12.58%), CanSino Biologics (9.69%), and WuXi Biologics (8.74%) having significant weightings [9][10] - The top ten weightings in the CSI Hong Kong Innovative Drug Index account for 72.16%, with companies such as Innovent Biologics (12.08%), BeiGene (10.36%), and WuXi Biologics (9.66%) being prominent [11][13] Group 4: Historical Performance - Both indices have shown gains exceeding 50% over the past year, with similar performance. However, the CSI Hong Kong Innovative Drug Index has outperformed the Hang Seng Innovative Drug Index over the past three and five years [14] Group 5: Valuation Levels - The Hang Seng Innovative Drug Index's TTM price-to-earnings ratio remains at a historically low level, around the 10% percentile [19] - The CSI Hong Kong Innovative Drug Index's TTM price-to-earnings ratio is also below 15%, indicating a low valuation level [19] Group 6: Common Points - Both indices focus on the innovative drug sector in the Hong Kong market, reflecting the performance of companies involved in innovative drug research, development, and production [22] - The purpose of both indices is to provide investors with a benchmark for observing the performance of the Hong Kong innovative drug market, aiding investment decision-making [22] - Multiple ETFs track these two indices, allowing for T+0 trading [23]