Focusing on core biotechnology industries, Huaan Hang Seng Biotech ETF (subscription code: 159102) commenced issuance on September 1st. The product will closely track the Hang Seng Biotech Index, encompassing a comprehensive biotechnology industry chain including pharmaceuticals, biotechnology, pharmaceutical distribution, medical devices and supplies. The Hang Seng Biotech Index is recognized as the biomedical version of the "Hang Seng Tech Index."
Biotechnology is a comprehensive scientific technology based on modern life sciences that utilizes the characteristics and functions of organisms or their components to design, modify, or produce useful substances through engineering and technical means to solve problems in medical, agricultural, environmental, and other fields. It can be broadly divided into four sub-sectors: innovative drugs, CXO (Contract Research and Manufacturing Organizations), medical devices, and AI+ healthcare.
Launched in December 2019, the Hang Seng Biotech Index has undergone multiple rounds of methodology upgrades, continuously demonstrating renewed vitality. From an industry distribution perspective, the index components are primarily concentrated in innovative drugs and CXO, with weights of 61% and 19% respectively, showing high industry concentration. Compared to the Hang Seng Healthcare Index and A-share biotech indices, the Hang Seng Biotech Index has higher proportions in innovative drugs and CXO, focusing more intensively on core biotechnology sectors.
Industry professionals view the Hang Seng Biotech Index as forming a distinctive Chinese biotechnology investment benchmark through the dual drivers of "innovation orientation + industry focus" from a fundamental perspective. Hong Kong serves as the world's second-largest biotechnology financing center, with the Hang Seng Biotech Index positioned as the biomedical version of the "Hang Seng Tech Index." As pure Stock Connect eligible securities not subject to QDII quota limitations, they offer significant liquidity advantages.
Huaan Fund Management stated that China's biotechnology industry has transitioned from "follow-on innovation" to the "original breakthrough" stage, currently at a critical period of triple breakthroughs in quantity, quality, and technology. Chinese companies' self-developed innovative drugs have ranked first globally in number since 2020, reaching 704 in 2024. Simultaneously, China's First-in-Class (FIC) innovative drug pipeline accounts for 24% globally, second only to the United States. The gap between Chinese and foreign new drug launches continues to narrow, with domestic FIC drugs successfully entering the market. Additionally, as the global economy enters a rate-cutting cycle, biotechnology as a high-growth industry benefits from declining capital costs. International capital returning to Hong Kong stocks and improving industry sentiment will drive valuation recovery for quality biotechnology companies.
Huaan Hang Seng Biotech ETF will be managed by Ni Bin, who possesses over 13 years of experience in the securities and fund industry, with nearly 7 years as an investment manager. Ni Bin joined Huaan Fund Management in July 2010 and began managing public funds in September 2018, participating in the innovative creation of multiple important index products at Huaan Fund Management. Huaan Fund Management's Index and Quantitative team will provide comprehensive support. As one of the influential index fund investment teams in the industry, Huaan Fund Management's Index and Quantitative team issued and managed China's first index fund, accumulating 23 years of index product management experience. Huaan Fund Management's index public funds cover domestic A-shares, bonds, commodities, as well as Hong Kong stocks, US stocks, and other QDII funds, providing investors with diversified asset allocation tools.
Risk Warning: Investment involves risks. Fund management companies do not guarantee profits or minimum returns for funds, and past performance cannot predict future returns. China's fund operation history is relatively short and cannot reflect all stages of securities market development. This fund is an equity index fund with expected risk and return levels higher than mixed funds, bond funds, and money market funds.
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