Significant policy support has emerged, driving a strong rebound in Hong Kong-listed pharmaceutical stocks during the morning session on April 15. The Huabao Hang Seng Hong Kong Stock Connect Innovative Drug Selection Trading Open Ended Index Securities Invest, which focuses entirely on innovative drug R&D companies, surged by up to 3% and is currently up 2.5%. Leading weighted stocks collectively rose, with Kintor Pharma-B gaining over 4%, while BeiGene and Sino Biopharmaceutical increased by more than 3%.
Hong Kong healthcare stocks also showed active performance, with the popular on-market Huabao Hong Kong Stock Connect Healthcare ETF rising 2.59% on increased volume, aiming for consecutive gains. Key constituent stock Jingtai Holdings surged 6%, and JD Health advanced 4%.
On the news front, on the evening of April 14, the State Council officially issued the "Several Opinions on Improving the Drug Price Formation Mechanism." As the highest-level top-tier design in the drug pricing field in eleven years, the document aims to establish a market-driven price formation mechanism.
Analysis indicates that the policy clarifies that high-level innovative drugs can independently set stable prices commensurate with high investment, while lifting price constraints for negotiated drugs in non-medical insurance channels. This fundamentally reshapes the pricing logic and return expectations for innovative drugs, steering the industry from past cost-control competition toward value restoration.
Interpretations suggest the document establishes core principles for a market-led drug price formation mechanism, allowing innovative drugs to set reasonable prices that match high investment and risk, with adjustments possible based on real-world studies. The return of pricing power to the market for domestic innovative drugs will promote diversified payment methods and significantly raise the commercial potential for innovative drugs in China.
Investors are encouraged to actively seize the buying opportunity in Hong Kong-listed pharmaceutical stocks, focusing on two key T+0 instruments: For innovative drug exposure, consider the Huabao Hang Seng Hong Kong Stock Connect Innovative Drug Selection Trading Open Ended Index Securities Invest, which fully targets innovative drug R&D firms, with its top ten holdings accounting for over 70% of the portfolio, highlighting strong leading characteristics. For healthcare exposure, consider the Huabao Hong Kong Stock Connect Healthcare ETF, which allocates approximately 70% of its holdings to CXO and AI healthcare, while also covering innovative drugs and medical devices (including brain-computer interfaces). Its top holdings include JD Health and AliHealth, among other rare internet healthcare leaders.
Data source: China Securities Index Company, Shanghai, Shenzhen, and Hong Kong stock exchanges, etc. Note: ETF funds do not charge sales service fees. When subscribing for or redeeming fund units, subscription and redemption agents may charge a commission of up to 0.5%, which includes relevant fees collected by stock exchanges and registration institutions. Fund fee rates are detailed in each fund's legal documents.
Institutional view: Soochow Securities report dated April 8, 2026, titled "Innovative Drug Vanguard: Changes in Medical Insurance's Stance Toward Innovative Drugs."
Risk warning: Index constituents shown are for display only; individual stock descriptions do not constitute any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses the risk rating of the Hong Kong Stock Connect Innovative Drug ETF and Hong Kong Stock Connect Healthcare ETF and their feeder funds as R4—medium to high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any form to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of these funds. Past fund performance does not indicate future results, and fund investments carry risks.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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