On the afternoon of September 5th, Hong Kong stocks opened higher and continued to rise, with innovative drugs leading the way in gains. The Hong Kong pharmaceutical ETF (159718. SZ) now rose 2.14%, with a year-on-year increase of over 89%. Component stocks such as San Sheng Pharmaceutical (01530) rose 12.00%, Kangnuoyo-B (02162) rose 10.44%, Jingtai Holdings (02228) rose 7.25%, and stocks such as Huang Pharmaceutical (00013) and Tongyuan Kangzheng-B (02410) followed suit.

On the news front, the 2025 World Congress on Lung Cancer (WCLC) will be held in Barcelona, Spain from September 6th to 9th. Several innovative drug leaders will release heavyweight new products during the conference. The release and exchange of research results at academic conferences will bring new development opportunities and market attention to innovative drug companies. Institutions are optimistic about the potential for valuation recovery in the innovative drug sector, and the logic is that in the 2025 interim report, the performance of innovative drugs and their industry chain is impressive; PD - (L) 1/VEGF track, 2025H2 data catalytic intensive; Multiple BD expectations are expected to be fulfilled within the year, opening up growth opportunities in the global market.

Founder Securities stated that the recent fluctuations in innovative drugs are mainly due to funding reasons. During the performance period, pharmaceutical companies' interim reports were generally within expectations, while generic drug companies' performance was under pressure, and their performance was average compared to strong industries. At the same time, there is a significant outflow of funds from individual stocks that have experienced significant gains in the early stages, putting some pressure on their stock prices. We believe that this round of adjustment will soon come to an end. The main attribute of innovative drugs remains unchanged, and September may be the starting point for a new wave of innovative drugs. Based on: 1) clearing the interim report and re establishing the annual performance expectations; 2) At the CSCO meeting in early September, WCLC， Key academic conferences such as ESMO in October are approaching, and Chinese data continues to dominate the rankings; 3) Strong individual stock catalysts such as Huahai, Chenxin, Jingxin, Huiyu, Warner, etc., with key data being read out in September and October; 4) The continuous achievement of BD, Q4 is expected to have a continuous redemption template.

The pharmaceutical ETF sector of Hong Kong shares is balanced, including not only innovative drugs, but also CXO, Internet medicine, innovative devices and other Hong Kong stock characteristic objects. It is a convenient standardized tool for investors to configure the pharmaceutical sector of Hong Kong shares. It is recommended to pay attention to the Hong Kong pharmaceutical ETF (159718. SZ) and its affiliated funds (Class A: 019598, Class C: 019599).

By editor