Following the Federal Reserve's rate hike decision, risk appetite improved and Hong Kong stocks continued their recovery, with the pharmaceutical and biotech sector along with mainland property developers leading gains, while semiconductors and precious metals weakened. At the close, the Hang Seng Index advanced 1.18% to 25,042.71 points, with total turnover reaching HK$202.731 billion; the Hang Seng Tech Index rose 0.4% to 4,423.29 points.
Among the largest Hong Kong-listed ETFs by scale, Tracker Fund of Hong Kong (02800) closed up 1.1% at HK$25.66, CSOP Hang Seng Tech Index ETF (03033) gained 0.42% to HK$4.338, and CSOP SK Hynix Daily (2x) Leveraged Product (07709) advanced 2.31% to HK$44.3.
Innovative drug ETFs lead gains on converging policy catalysts and smoother outbound pathways
By the session's end, Hang Seng Innovative Drug ETF Huatai柏瑞 (520500.SH) climbed 6.08% to 1.448 yuan, Stock Connect Innovative Drug ETF CSOP (159297.SZ) added 6.04% to 0.755 yuan, and Hong Kong Innovative Drug ETF Bosera (520690.SH) rose 5.98% to 0.762 yuan. On September 18, ten government bodies including the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued the 15th Five-Year Plan for the Pharmaceutical Industry, setting a target for the innovative drug sector to achieve average annual growth of no less than 20% by 2030 and for first-in-class drugs to account for at least 25% of the global total. The plan also accelerates the adoption of artificial intelligence, quantum computing, and supercomputing to bolster drug development. Two days later, the National Medical Products Administration stated at a State Council Information Office briefing that it would support the scaling, consolidation, and premiumization of the pharmaceutical industry, encourage foreign companies to relocate original drugs and high-end medical equipment manufacturing to China, and support domestic firms in expanding overseas. On the outbound front, a draft U.S. Treasury rule on biopharma investments involving China narrows its review scope to pathogens and weaponizable biotechnologies, leaving most innovative drug licensing and collaboration deals unaffected, thus removing the primary risk on the outbound channel. With tailwinds from both policy support and clearer international pathways, the sector's sentiment strengthened notably.
According to a research note from CSC Financial, Chinese innovative drug developers are demonstrating a comprehensive push in lung cancer, with multiple core programs transitioning from early clinical exploration into Phase III validation and global registration stages.
U.S. SEC 'innovation exemption' opens new regulatory path, crypto ETFs rally all day
By the close, CSOP Daily (2x) Long MSTR Product (07799) jumped 30.71% to HK$4.98, CSOP Daily (2x) Long Coinbase Product (07711) surged 21.37% to HK$28.28, and ChinaAMC Bitcoin ETF (03042) advanced 5.19% to HK$9.94. On September 17, the U.S. Securities and Exchange Commission issued a five-year 'innovation exemption' with strict conditions, offering the first federal exemption path for tokenized NMS stock on-chain trading under a licensed automated market maker model. The exemption temporarily relieves qualifying trading venues from being classified as 'exchanges' under the Securities Exchange Act and provides limited 'dealer' definition relief for specific liquidity providers. On the same day, the Commodity Futures Trading Commission expanded its no-action coverage for digital assets and submitted a draft regulation on crypto asset trading and market oversight to the White House, widely interpreted as regulators actively establishing a management framework to reduce industry uncertainty. Bolstered by these developments, Bitcoin reclaimed the $80,000 level over the weekend and pushed past $81,000. JPMorgan data showed that Bitcoin ETFs managed by institutions like BlackRock attracted roughly $160 million in net inflows, ending two consecutive days of outflows. Digital asset industry participants noted that near-term focus will center on regulatory progress and institutional capital flows, including ETF inflows and the pace of traditional financial institutions' participation.
Institutional outlook: stabilization possible for Hong Kong stocks, but structural constraints persist
Huatai Securities' Hong Kong equity strategy team said that while interest rate volatility has declined, the risk from elevated rate levels has not been fully resolved, and earnings expectations have yet to recover. The market may see a technical rebound in the short term, but the timing and magnitude remain uncertain. Following the FOMC decision, implied bearish sentiment in the options market and negative gamma fluctuations have cooled, potentially leading to some technical improvement. However, from a trend perspective, the external liquidity tightening and the lackluster domestic fundamentals facing Hong Kong stocks have not fundamentally shifted. The FOMC outcome improved rate volatility, but U.S. Treasury yields remain near 5%, with the future path dependent on oil prices and inflation. Moreover, the global direction of central bank tightening has not changed, continuing to cap valuations for Hong Kong stocks.
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