After four consecutive days of decline, Hong Kong stocks in innovative pharmaceuticals are attempting to rebound, with over 3.2 billion in funds continuously flowing into related ETFs.

Gelonghui, June 19｜This morning, the Hong Kong innovative drug sector opened higher, with the Hang Seng Biotechnology Index rising by 1.4% at one point, ranking among the top gainers of the ETF, but the gains subsequently narrowed. Yesterday, at the end of trading, the Hang Seng Biotechnology Index briefly turned from red to green, ultimately closing down slightly by 0.4%, forming a doji candlestick, which may indicate that the Hong Kong innovative drug sector is attempting a counterattack after four consecutive days of decline since last Friday. Capital has also continued to bottom out the related Hong Kong innovative drug-themed ETFs during the adjustment period. According to Wind data, from June 13 to June 18, the total net inflow into the Hong Kong Stock Connect innovative drug index, Hong Kong innovative drug index, etc. was 3.236 billion yuan. Zheshang Securities remains bullish on the global "Chineseization" of innovative drug valuations in the second half of the year, believing that based on local innovative drugs' accumulation in dual antibodies, ADC, and other fields, Chinese local innovative drugs are beginning to enter an accelerated globalization phase. We are optimistic about the prospects for an increasing number of overseas pharmaceutical companies, especially MNC core pipelines' "Chineseization," and the opportunities it brings for global valuation reshaping for local innovative drugs. Noteworthy products and their respective gains/losses as of the time of this report: Hang Seng Medical ETF (159892), a representative of the global pharmaceutical industry chain, as of this report has fallen by 1.25%, declining over 8% since June 13, and up over 47% year-to-date. It tracks the Hang Seng Biotechnology Index, with its top ten constituent stocks including INNOVENT BIO, WUXI BIO, BEIGENE, AKESO, and other leading pharmaceutical stocks. The STAR Medical ETF Fund (588130) is a representative of the STAR biomedicine sector, and as of this report, it has slightly decreased by 0.38%, covering 50 leading domestic biomedicine companies in fields such as innovative drugs and innovative devices, with its top ten constituent stocks including United Imaging, BEIGENE, BGI, JUNSHI BIO, and other leading players in various subdivisions.