A report has caused a collapse! Hong Kong stocks of innovative drugs surged sharply, with funds actively purchasing the Hang Seng Healthcare ETF against the trend.

On September 11, according to Gelonghui, today's Hong Kong stocks in the innovative drug sector experienced a dramatic V-shaped fluctuation. Hansoh Pharmaceutical, BeiGene, and CSPC Pharma declined by 7.98%, 7.44%, and 6.86%, respectively. The Hang Seng Medical ETF (159892) at one point fell by 6.49%, before quickly narrowing its decline to -3.3%. During this period, there was a net subscription of 92 million units, while the Hong Kong Stock Connect Medical ETF reduced its deepest drop of 4.64% to -1.88%. On the news front, The New York Times reported on September 10 that the Trump administration is considering a draft executive order to impose stricter restrictions on innovative drugs from China, particularly experimental drugs. Last year's Biodefense Act has already confirmed that decoupling from pharmaceuticals is not feasible, and it had limited impact on the performance of CXO pharmaceutical companies at that time. Similarly, the draft reported above is likely to have limited substantive impact on domestic innovative pharmaceutical enterprises: ① Huatai Securities pointed out that since 2025 (as of August 27), there have been 540 global BD transactions for innovative drugs, with a total disclosed amount of USD 163.41 billion. Among these, domestic innovative drugs accounted for 83 license-out transactions, disclosing a total amount of USD 84.53 billion, representing over half of the global total, effectively demonstrating that the rise of Chinese innovative drugs is irreversible and is a result of the optimized allocation of global innovative resources. ② Since 2020, many foreign enterprises have faced patent cliff issues, and over the next decade, they will need to acquire pipelines to fill a market gap exceeding USD 240 billion. As a powerful interest group, they will inevitably increase lobbying efforts. ③ In the long term, as domestic aging continues to accelerate, the health consumption demand from the elderly population is expected to grow steadily, which is a core logic for investing in the pharmaceutical sector. Notable products and their performance as of the time of publication include: the global pharmaceutical industry representative: Hang Seng Medical ETF (159892), -3.3%, with the top ten weighted stocks covering several innovative leading pharmaceutical companies: BeiGene, Wuxi Bio, Kangfang Biotech, Sino Biopharm, and 3SBio. In-depth focus on CXO and AI in healthcare: Hong Kong Stock Connect Medical ETF (520510), -1.88%, with CXO concentration leading the entire market, including major stocks such as Wuxi Bio (CDMO champion): a global leader in dual-antibody drug development, MicroPort (a pioneer in domestic substitutes in the cardiovascular intervention field), and JD.com (a leader in healthcare digitization).