The innovative drug sector continues its rebound trend, with the Hang Seng Innovative Drug ETF Huatai-PineBridge (520500) hitting a record high of 2.2 billion yuan in single-day trading volume!

Recently, the innovative drug sector, which has undergone a six-month adjustment, has defied the trend and strengthened, becoming one of the core focuses of market attention. Today (April 26, 2024), in the early trading session, the innovative drug sector continued its rebound trend, and related ETFs saw active trading.

Currently, the only ETF product tracking the Hang Seng Innovation Drug Index—the Hang Seng Innovation Drug ETF Huatai-PineBridge (520500)—has seen significantly increased trading activity. Data from the exchange and Wind show that on the latest trading day (April 1, 2024), this ETF’s single-day trading volume reached 2.28 billion yuan, a 274% increase from the average daily trading volume of 610 million yuan in the first quarter of 2024, setting a new historical high. Meanwhile, the ETF’s latest size has risen to 2.2 billion yuan, also a record high.

From a fundamental perspective, the innovation drug industry may be entering a profit cycle. Founder Securities pointed out that leading innovative drug companies are intensively reaching breakeven points. After more than half a year of adjustment, the downward space for the innovative drug sector may be limited, and it possesses strong hedging attributes. Its fundamentals are unlikely to be significantly affected by geopolitical conflicts or US-China relations. Unlike the rate hike cycle in 2022, current innovative drug companies already have self-sustaining capabilities, and their valuations are less sensitive to rate cut expectations.

In terms of event catalysts, the American Association for Cancer Research (AACR) annual meeting will be held in San Diego, USA, from April 17-22, 2024. Reports indicate that over 100 Chinese pharmaceutical companies will participate in the conference, presenting nearly 400 research results covering multiple current hot targets, including frontier technologies such as nuclear medicine, DAC, cell therapy, and mRNA. These are expected to further enhance pipeline value and BD opportunities, potentially becoming important catalysts to attract capital to deploy early.

The Hang Seng Innovation Drug ETF Huatai-PineBridge (520500), through the QDII mechanism, invests in 40 leading Hong Kong-listed innovative drug companies, with a purity of 100%. It focuses on biopharmaceuticals, chemical pharmaceuticals, and raw materials in the innovative drug field. The ETF has a large scale, good liquidity, and supports T+0 intraday trading. Against the backdrop of differentiated technology and cycle markets, as well as shifting capital flows, it is expected to become an efficient tool to help rebalance funds and seize opportunities in Hong Kong’s innovative drug sector.

Huatai-PineBridge Fund is one of the first ETF managers in China, with a leading industry management scale. “ETF Huatai-PineBridge” has become a common choice for many investors. According to the latest annual report, Huatai-PineBridge Fund generated a cumulative profit of 111.14 billion yuan for investors in 2025, making it one of only seven fund companies in the market to achieve over 1 trillion yuan in profit during the same period. Its popular product—the CSI 300 ETF Huatai-PineBridge (510300)—achieved a fund profit of 78.52B yuan in 2025, ranking among the top among all A-share funds.

MACD golden cross signals have formed, and these stocks are showing good upward momentum!