It is learned that Hang Seng Indexes Company stated in a blog post that on November 28, 2025, Hong Kong Exchanges and Clearing Limited (HKEX) officially launched the Hang Seng Biotech Index Futures, marking another milestone since the introduction of the Hang Seng Biotech Index. This development completes an ecosystem encompassing exchange-traded products (ETPs), index funds, and derivative products such as futures. The company believes that as the product ecosystem around the index matures, the market structure will further improve.
The Hang Seng Biotech Index, serving as the benchmark for the newly launched futures contracts, was introduced in December 2019 to reflect the overall performance of Hong Kong-listed biotech companies eligible for the Stock Connect program, including those listed under Chapter 18A of the Listing Rules. The index comprises 30 constituent stocks from four business subcategories: 1. Pharmaceuticals 2. Biotechnology 3. Drug distribution 4. Medical equipment and supplies
As of December 5, 2025, biotechnology accounts for 50% of the index weight, while pharmaceuticals make up 40%. Over the past 12 months, the Hang Seng Biotech Index surged 76.8%, outperforming the Hang Seng Composite Index (+36.8%) by 40 percentage points. From the beginning of the year to December 5, the biotech index rose 80.4%, surpassing the Hang Seng Composite Index (+33.8%) by 46.6 percentage points.
The strong performance of the Hang Seng Biotech Index over the past year is attributed to supportive policies in mainland China and the growing global influence of Chinese biotech companies. The explosive growth in out-licensing deals (authorizing another entity to produce and/or distribute drugs) highlights the increasing importance of Chinese biotech firms. In 2019, out-licensing transactions by Chinese pharmaceutical companies totaled less than $100 million, but by 2024, the figure had soared to $52 billion, representing a compound annual growth rate of 249%.
Before the launch of the Hang Seng Biotech Index Futures, HKEX had already introduced futures contracts based on three flagship indices from Hang Seng Indexes Company: 1. Hang Seng Index (HSI) 2. Hang Seng China Enterprises Index (HSCEI) 3. Hang Seng Tech Index (HSTECH)
Historically, after launching futures contracts tied to Hang Seng Indexes Company’s benchmarks, HKEX typically followed up with options contracts on the same index. For example, HSCEI futures were introduced in December 2003, followed by options in June 2004. Similarly, HSTECH futures debuted in November 2020, with options launching in January 2021.
Notably, the Hang Seng Biotech Index recorded an average daily volume (ADV) of 130 contracts in its first six trading days up to December 5, 2025. In comparison, HSTECH futures saw an ADV of approximately 1,800 contracts in their first year (2020), while HSCEI futures averaged around 3,200 contracts per day in 2003. Historical data suggests that as the product ecosystem around an index matures, trading activity in its futures contracts tends to increase.
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