The innovative drug sector in Hong Kong's stock market rebounded, with the Hang Seng Pharmaceuticals ETF rising by 2.8%. The Hang Seng SOE Dividend ETF surged over 11% starting from September 26.

Gelonghui, November 12th | The innovative pharmaceuticals sector of the Hong Kong stock market opened high and continued to rise. Shares of 3SBio and BeiGene increased by 6%, while DyNAbind and Akeso rose by 4.36% and 3.72%, respectively, driving the largest Hang Seng Pharma ETF (tracking the same underlying index) up by 2%. The dividend-paying sector extended its upward trend, with the Hang Seng SOE Dividend ETF rising over 1%, accumulating an 11% increase since September 26th. News highlights: ① BeiGene reported Q3 total revenue of USD 1.4 billion, a robust year-on-year growth of 41%, marking a new record for the same period historically. During the period, GAAP net profit reached USD 125 million, reversing losses to profitability year-on-year. ② On the industry front, last week concluded negotiations for the 2025 National Basic Medical Insurance Drug List and price consultations for commercial insurance innovation drug listings. It is expected that November to December will remain an active period for business development (BD) deals, with key industry conferences such as ASH (American Society of Hematology) and SABCS (San Antonio Breast Cancer Symposium) scheduled for December. ③ Ping An invested CNY 5 billion in purchasing China Telecom's Hong Kong shares on November 6th, increasing its stake to 6.11%. Regarding the pharmaceutical sector, Industrial Securities believes that the trend of 'innovation plus internationalization' in the innovative drug industry remains intact, and after short-term adjustments, the elasticity of the innovative drug sector has further improved. For the dividend-paying sector, recent market selling pressure has been significant, leading to renewed capital inflows into dividend stocks. Industrial Securities suggests that at year-end and the beginning of the next year, Hong Kong-listed high-dividend assets are likely to attract more attention. Products adopting a barbell strategy and their performance as of press time: Barbell Left, 'SOEs + Hong Kong High Dividend': Hang Seng SOE Dividend ETF (513910), +1.12%, with major holdings including COSCO Shipping Holdings, Orient Overseas International, CITIC Bank, China Construction Bank, CNOOC, and PetroChina. Barbell Right, representing the global pharmaceutical industry chain: Hang Seng Pharma ETF (159892), +2.85%, the largest fund tracking the same underlying index, with top ten holdings including BeiGene, Wuxi Bio, Akeso, Sino Biopharm, and 3SBio.