Several leading innovative drug companies have achieved performance significantly above expectations. The largest-scale Hong Kong-listed innovative drug ETF, GF (513120), remains actively traded.

China Securities Network News, March 27, Hong Kong stocks experienced narrow fluctuations, with innovative drug concepts led by companies such as Sino Biopharmaceutical and Innovent Biologics. According to Wind data, as of 14:44, among related ETF products, the Hong Kong Innovative Drug ETF Guangfa (513120) rose over 5% during the session, with active trading and a transaction volume that consistently ranked first among all equity ETFs in the market.

As of March 26, the latest scale of the Hong Kong Innovative Drug ETF Guangfa (513120) exceeded 23.7 billion yuan, making it the largest Hong Kong innovative drug-themed index fund in the market, supporting T+0 trading. Furthermore, funds have been continuously allocated recently, with over 1.3 billion yuan net inflow into the Hong Kong Innovative Drug ETF Guangfa (513120) since the beginning of the year, demonstrating significant “capital-absorbing” characteristics.

On the news front, the performance of leading innovative drug companies exceeding expectations has become a core driving factor. Innovent Biologics released its 2025 performance report on March 26, achieving total revenue of 13.042 billion yuan, a year-on-year increase of 38.4%, and for the first time achieving annual profitability, with 18 listed products, of which 12 have been included in the national medical insurance catalog. On March 25, Heng Rui Medicine released its 2025 financial report, with both revenue and net profit reaching new highs during the reporting period, achieving annual operating revenue of 31.629 billion yuan, a year-on-year increase of 13.02%; net profit attributable to the parent company was 7.711 billion yuan, a year-on-year increase of 21.69%. In addition, several innovative drug companies, represented by Ascletis Pharma, Legend Biotech, and China National Pharmaceutical Group, have turned losses into profits, marking the industry’s entry into a profit realization period.

From a policy perspective, the 2026 government work report first listed biopharmaceuticals as an emerging pillar industry. Guosheng Securities believes that for the pharmaceutical sector, this indicates that the policy positioning for biopharmaceuticals is upgrading from “nurturing emerging tracks” to “an important pillar direction for economic growth and industrial upgrading,” with innovative drugs being the most core high-value-added segment of the biopharmaceutical industry, benefiting particularly clearly.

It is reported that the Hong Kong Innovative Drug ETF Guangfa (513120; Class A/C 019670/019671) is highly focused on quality biotechnology companies in the Hong Kong market, covering leading companies in sub-sectors such as innovative drugs, gene therapy, and cutting-edge biotechnology, with the combined weight of the biopharmaceutical and chemical pharmaceutical industries exceeding 85%, showing a high concentration in innovative drugs. The constituent stocks include core Hong Kong 18A biotechnology companies such as Sino Biopharmaceutical, CanSino Biologics, Innovent Biologics, and 3SBio. (Wang Hejing)

[Source: China Securities Journal · China Securities Network]