The offshore market is booming with policy support! The Hong Kong Stock Connect innovative drug stocks surged again in the afternoon, with 520880 experiencing a volume-driven increase of over 2.5%!

On the afternoon of March 16, the Hong Kong Stock Connect Innovation Drug Sector surged again. The 100% innovation drug development target—Hong Kong Stock Connect Innovation Drug ETF (520880) performed actively, with an intraday price increase of 2.53%, and a trading volume of 377 million yuan.

In terms of constituent stocks, Changfeng Pharmaceutical led the gains with a 31.83% increase, followed by Baiao Sai Tu-B and Kangfang Biotech, which rose by 5.9% and 5.72%, respectively. On the other hand, Zhonghui Biotech-B performed weaker, falling by 17.84%, while Baoji Pharmaceutical-B and JinFang Medical-B declined by 5.35% and 5.03%.

Regarding news, the Hang Seng Hong Kong Stock Connect Innovation Drug Select Index, tracked by the Hong Kong Stock Connect Innovation Drug ETF (520880), completed its constituent adjustment on March 9, adding 13 new companies. These include companies in cutting-edge fields such as AI drug development and gene editing, increasing the total number of index constituents to 50. Additionally, the government work report this year explicitly designated biopharmaceuticals as an “emerging pillar industry,” marking a new strategic development phase for the industry.

Shanghai Securities pointed out that recently, China’s innovation drug BD transactions have been active with impressive amounts, shifting towards early-stage R&D, with cost and efficiency advantages continuously recognized globally. Several major collaborations on preclinical assets demonstrate China’s source innovation capabilities gaining worldwide recognition.

Debon Securities noted that innovation drugs have been included in the government work report for three consecutive years. By 2026, the government will elevate the pharmaceutical and biotech industry from an emerging industry to a pillar industry, strengthening full-chain support policies. Domestic innovative drugs are receiving policy attention, with continuous breakthroughs in the industry and a steady increase in Class 1 innovative drugs approved for listing. Starting from 2025, overseas BD activities for domestic innovation drugs are accelerating, with the potential total transaction amount reaching approximately $34.6 billion in January 2026, a year-on-year increase of about 55%.

The Hong Kong Stock Connect Innovation Drug ETF (520880) passively tracks the Hang Seng Hong Kong Stock Connect Innovation Drug Select Index. The top ten weighted stocks are China Resources Pharmaceutical Group, BeiGene, Innovent Biologics, Kangfang Biotech, China Biologic Products, Hansoh Pharmaceutical, Sihuan Pharmaceutical, Kelun-Bare Biological-B, Kintor Pharmaceutical, and Zai Lab.

Data sources include the Shanghai and Shenzhen Stock Exchanges, public information, etc.

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MACD Golden Cross signals have formed, and these stocks are showing good upward momentum!