Amid the ESMO conference and the Q3 earnings season, the innovative drug sector achieved two consecutive days of gains, with the Hang Seng Pharmaceuticals ETF rising 2% and attracting inflows for four consecutive sessions.

Gelonghui, October 16 | The Hong Kong-listed innovative drug sector has rebounded strongly for the second consecutive day following a period of consolidation. 3SBio, ImmuneOnco Biopharmaceuticals, and Akeso Biopharma rose by 7.76%, 6.88%, and 6.72% respectively, driving gains of 2.04% and 0.57% in the Hang Seng Pharmaceuticals ETF and the Stock Connect Healthcare ETF (520510). Catalysts include: ①The 2025 European Society for Medical Oncology (ESMO) Annual Meeting is scheduled to take place from October 17 to 21 in Berlin, Germany. Chinese innovative drug companies shortlisted for this ESMO include Akeso Biopharma, Kelun-Biotech, Hengrui Pharma, RemeGen, and Junshi Biosciences. ②Meanwhile, the market is focusing on opportunities in Q3 earnings reports; significant volume growth trends are observed for innovative products, with traditional large pharmaceutical enterprises such as Hengrui Pharma and BeiGene expected to continue the trend from Q2. Companies like Haisco and Salubris are showing quarter-on-quarter acceleration in revenue. ③The largest-scale product, Hang Seng Pharmaceuticals ETF (159892), has seen four consecutive days of inflows, totaling RMB 420 million. Analysts believe that the trend of "innovation plus globalization" in the innovative drug industry remains unchanged, consistently representing a core direction for the pharmaceutical sector. Policy support for the industry is projected to persist, global competitiveness is expected to strengthen, and commercial profitability is anticipated to materialize further. Additionally, post-October catalysts including ESMO, business development (BD), and national medical insurance negotiations may drive stabilization and a rebound in innovative drugs. Notable products and their price movements as of press time: Representative of the global pharmaceutical industry value chain: Hang Seng Pharmaceuticals ETF (159892), +2.04%, with its top ten weighted stocks encompassing multiple pharmaceutical firms hitting new highs, including BeiGene, Wuxi Bio, Akeso Biopharma, Sino Biopharm, and 3SBio. Deep focus on CXO and AI healthcare: Stock Connect Healthcare ETF (520510), +0.57%, with the highest concentration of CXO in the index across the entire market. Weighted stocks include Wuxi Bio (CDMO leader), (a global frontrunner in bispecific antibody drug development), MicroPort (pioneer in domestic substitution in cardiovascular intervention), and JD Health (leader in digital health).