Core Viewpoint - The Hong Kong innovative pharmaceutical sector is experiencing significant volatility after a period of rapid growth, with institutions suggesting that recent adjustments are technical corrections rather than a fundamental downturn, supported by domestic policy and international recognition of value [1][7][8]. Group 1: Market Performance - Junshi Biosciences (1877.HK) closed with a 33.75% increase, igniting interest in the Hong Kong innovative drug sector, leading to multiple index products being launched [1]. - As of August 5, 13 funds have achieved over 100% growth in net asset value this year, primarily focusing on innovative pharmaceuticals [2]. - The Hong Kong innovative drug index experienced a maximum drawdown of 10.56% from July 30 to August 4, indicating recent high-level adjustments [5]. Group 2: Fund Activity - A total of 12 new Hong Kong innovative drug index products have been launched this year, with significant investor interest, including a successful fundraising of 327 million yuan for the Hang Seng Hong Kong Stock Connect Innovative Drug ETF [4]. - Eight ETFs focusing on innovative drugs have also shown strong performance, with net asset value growth rates ranging from 100.94% to 105.35% [3]. Group 3: Investment Insights - Analysts believe that the recent high-level adjustments are a normal market reaction to previous rapid gains, with potential for further growth in the medium to long term due to improved research capabilities and supportive policies [8][9]. - The innovative drug sector is expected to benefit from policy support and increased foreign investment, with a projected market size exceeding 2 trillion yuan in the long term [9].