Surging BD transactions and policy catalysts! The Hang Seng Medicine ETF (159892) surged by 3.67%, while the HK Connect Healthcare ETF (520510) rose by 2.89%, with its real-time turnover rate ranking first among similar products.

Gelonghui, March 6th | The innovative pharmaceuticals sector rebounded strongly today. Shares of 3SBio Inc. surged 10%, driving the Hang Seng Pharmaceuticals ETF (159892) up by 3.67%. The Stock Connect Healthcare ETF (520510) rose by 2.89%, with a turnover rate of 54.58%, ranking first among similar products. Key updates include: ①The 2026 Government Work Report identifies new quality productive forces as a core focus, for the first time listing biomedicine alongside integrated circuits, aerospace, and low-altitude economy as national "emerging pillar industries." It is anticipated that innovative pharmaceuticals will receive concentrated policy support, funding, and resource allocation. ②Business Development (BD) transactions remain robust. On March 4th, Sino Biopharm announced an exclusive licensing agreement with Sanofi for Rovatirelin, securing an upfront payment of $135 million and potential milestone payments totaling up to $1.395 billion. In the first two months of this year, the total value of China's innovative drug out-licensing deals reached $53.3 billion, nearing 40% of the total for all of 2025. ③The deep integration of artificial intelligence (AI) and biomedicine is transitioning from concept to industrial application. The Contract Research and Manufacturing Organization (CXO) sector is expected to benefit from stabilized global research investments and improved financing conditions. Related products: Representing the global pharmaceutical industry chain, the Hang Seng Pharmaceuticals ETF (159892), with a current scale of 5.955 billion yuan, is the largest among similar products. Its top ten weighted stocks include BeiGene, Wuxi Bio, Akeso Biopharma, Sino Biopharm, and 3SBio Inc. Focused on CXO and AI healthcare, the Stock Connect Healthcare ETF (520510) has the highest concentration of CXO-related stocks in the market. Key holdings include Wuxi Bio (leading CDMO provider), (a global frontrunner in bispecific antibody R&D), MicroPort CardioFlow (a pioneer in domestic cardiovascular interventions), and JD Health (a leader in digital healthcare).