As of 09:49 on November 25, 2024, the CSI Hong Kong Stock Connect Medical and Health Composite Index (930965) has risen strongly by 1.05%, with component stocks such as Zaiding Pharmaceutical (09688) rising by 7.79%, Kelombotai Bio-B (06990) rising by 5.24%, Kangfang Bio-B (09926) rising by 3.67%, and stocks such as WuXi AppTec (02268) and Kangnuoy-B (02162) following suit. The Hong Kong Pharmaceutical ETF (513700) rose by 0.99%.

Over time, as of November 22, 2024, the Hong Kong Pharmaceutical ETF has risen by 10.99% in the past three months. In terms of scale, the Hong Kong Pharmaceutical ETF has grown by 36.8335 million yuan in the past week, achieving significant growth.

From a valuation perspective, the latest P/E ratio (PE-TTM) of the China Securities Hong Kong Stock Connect Medical and Health Composite Index tracked by the Hong Kong Pharmaceutical ETF is only 27.24 times, at the 16.77% percentile in the past three years, which means the valuation is lower than the 83.23% or more in the past three years and at a historical low.

In terms of news, the 2024 China Pharmaceutical Industry Development Conference and Shanghai International Biomedical Industry Week were recently held in Shanghai. According to the data released at the conference, since the 14th Five Year Plan, the quantity and quality of domestically produced innovative drugs in China have both increased. A total of 113 domestically produced innovative drugs have been approved for market, which is 2.8 times the number of new drugs approved during the 13th Five Year Plan, and the market size has reached 100 billion yuan.

According to a research report by China Post Securities, the pharmaceutical industry's performance showed a year-on-year improvement trend in the first three quarters of 2024. The impact of downstream destocking and anti-corruption is gradually clearing up. Despite temporary pressure, the segmented sectors such as innovative drugs, upstream reagents, and active pharmaceutical ingredients have shown outstanding performance and obvious differentiation. At the same time, the industry's R&D expense rate showed an overall year-on-year rebound from the first quarter of 2023 to the third quarter of 2024, which will lay the foundation for the industry's medium - and long-term stable development. Pharmaceutical companies that already have solid R&D platforms and sustainable innovation capabilities are expected to be the first to experience a performance reversal.

Hong Kong Pharmaceutical ETF (513700), OTC Connect (Class A: 021088; Class C: 021089).