Despite a pullback in the innovative drug sector during today's early trading session (2026/01/26), market activity has remained robust. The Hang Seng Innovation Drug ETF (520500), currently the only product in the entire market tracking the Hang Seng Innovation Drug Index, has achieved an average daily turnover of 624 million yuan since the start of 2026. The fund's size and outstanding shares have reached 2.102 billion yuan and 1.274 billion shares respectively, indicating a high level of capital attention.
At the industry level, the momentum for Chinese innovative drugs going global is strong. Data from the PharmaMirror NextPharma database reveals that in 2025, Chinese innovative drugs completed a total of 157 BD outbound licensing deals, with a total transaction value of $135.655 billion, including $7 billion in upfront payments. All three of these key figures set new historical records. Notably, among the top ten global License-out deals by total value in 2025, eight originated from China; furthermore, China accounted for three out of the four transactions with a total value exceeding $10 billion. The total value of China's innovative drug BD deals in 2025 already constituted 49% of the global total, surpassing the United States for the first time.
The policy environment is also providing strong support. Nine departments, including the Ministry of Commerce, jointly issued the "Opinions on Promoting the High-Quality Development of the Drug Retail Industry," which explicitly proposes optimizing the drug marketing system, encouraging innovative drugs to enter retail pharmacy sales channels, and aiding market expansion.
CMB International stated that, building on the explosive growth of BD deals in 2025, several authorizations have been successfully concluded consecutively since the beginning of 2026, reflecting the persistently high景气度 (prosperity) of the industry's global expansion. They suggest that in the future, Chinese innovative drugs are expected to command higher transaction values based on early-stage clinical data. Looking ahead to 2026, the long-term trend of innovative drugs going global is likely to continue, and subsequent focus should be on the clinical progress and data realization of already-outbound pipelines as key catalysts.
It is reported that the Hang Seng Innovation Drug ETF (520500) invests in 31 leading Hong Kong-listed innovative drug companies through the QDII mechanism, covering the industry's R&D forefront and core commercial forces. It primarily focuses on core mid-to-upstream innovative drug sectors such as biopharmaceuticals, chemical pharmaceuticals, and active pharmaceutical ingredients, bringing together a group of innovative drug industry leaders with strong R&D capabilities and development potential.
Overall, driven by the共振 (resonance) of a完善 (improving) policy system, increasingly宽松 (accommodative) global liquidity, continuous technological breakthroughs by Chinese pharmaceutical companies, and the ongoing execution of BD deals, China's innovative drug industry may be entering a critical phase transitioning from an "R&D investment period" to a "value realization period." The Hang Seng Innovation Drug ETF (520500), with its relatively large size, superior liquidity, and support for intraday T+0 trading, is positioned to serve as an effective tool for investors seeking to capture opportunities in Hong Kong-listed innovative drug stocks.
The fund manager of the Hang Seng Innovation Drug ETF (520500), Huatai-PineBridge基金管理有限公司 (Huatai-PineBridge Fund Management Co., Ltd.), is one of China's first ETF managers. Beyond its distinctive satellite position ETFs, the company also has deep积累 (accumulation) in broad-market and dividend-themed index areas. Its "Dividend Family Bucket" series includes the Dividend ETF (510880), Low-Volatility Dividend ETF (512890), Hong Kong Stock Connect Dividend ETF (513530), Central SOE Dividend ETF (561580), and Hong Kong Stock Connect Low-Volatility Dividend ETF (520890), which could be suitable defensive options within a "barbell strategy."
When investors of the Hang Seng Innovation Drug ETF subscribe for or redeem fund shares, the subscription/redemption agent broker may charge a commission of up to 0.5%, which includes relevant fees charged by the stock exchange, registration机构 (institutions), etc. The above is extracted from the product's legal documents as of 2026/01/23. Commissions for secondary market trading are subject to the standards set by the investor's broker, and stamp duty is exempt.
Risk Warning: Funds carry risks, investment requires caution. If you intend to purchase related fund products, please pay attention to the relevant regulations on investor suitability management, complete a risk assessment in advance, and purchase fund products with a risk等级 (rating) that matches your own risk tolerance based on the assessment results. The past performance of a fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment involves investment risks. Please read the fund contract, fund prospectus, and product key facts statement carefully to understand the specific details of the fund. This fund may invest in overseas securities markets. In addition to general investment risks similar to those of domestic securities investment funds, such as market volatility risk, it will also face special investment risks including exchange rate risk and overseas securities market risk. The index is compiled and published by Hang Seng Indexes Company Limited, to whom the ownership of the index belongs. The index is compiled and calculated by Hang Seng Indexes Company Limited ("Hang Seng"). Hang Seng will take all necessary measures to ensure the accuracy of the index but does not make any guarantee to this effect and shall not be liable for any errors in the index.
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