Seize the opportunity! Hong Kong biotech stock sector revival! Hang Seng Biotechnology ETF Huatai Barry (513930) launches to help you gain one-click exposure to innovative drugs + CXO dual tracks

The Hong Kong stock market’s biopharmaceutical sector gains another investment tool. On March 18, 2026, Huatai-PineBridge Fund’s Hang Seng Biotech ETF Huatai-PineBridge (513930) was officially launched, providing investors with a convenient way to easily allocate to high-quality biotech assets in Hong Kong stocks.

It is reported that the Hang Seng Biotech ETF Huatai-PineBridge (513930) tracks the Hang Seng Biotech Index, which is the only pharmaceutical-related index in the Hong Kong stock market equipped with stock index futures. The index mainly reflects the overall performance of biotech companies listed in Hong Kong that qualify for the Stock Connect program, including companies listed under Chapter 18A of the listing rules. The index components are highly focused on the two core sectors of innovative drugs and CXO services, accounting for about 90% of the total weight, and also include frontier fields such as AI + healthcare, aiming to precisely capture the growth dividends of Hong Kong’s biotech industry.

With its unique index construction approach, the Hang Seng Biotech Index has performed outstandingly in the Hong Kong pharmaceutical sector since 2025. As of March 13, 2026, the index has achieved a cumulative increase of 62.08%, significantly outperforming the Hang Seng Healthcare (54.78%), Hong Kong Stock Connect Healthcare (19.82%), and Hang Seng Hong Kong Stock Connect Innovation Drug Index (59.18%) during the same period.

The wave of globalization continues to validate the global value of Chinese innovative drugs. In 2025, China’s license-out transactions for innovative drugs totaled $135.7 billion, with an upfront payment of $7 billion, and 158 deals in total, setting new records in all three metrics. China’s share of the global market reached 49%, surpassing the United States for the first time and ranking first worldwide. Hong Kong stocks, leveraging the Chapter 18A rules, have gathered a number of companies with both innovation strength and internationalization potential. Coupled with the ongoing global interest rate cuts and continuous optimization of the connectivity mechanisms, mainland capital is accelerating inflows, which may jointly drive a revaluation of the sector.

Policy signals are also positive. The 2026 government work report explicitly designated biopharmaceuticals as a “new pillar industry” alongside integrated circuits and aerospace. The regulatory tone has shifted from “cost control” to “encouraging quality innovation.” The medical insurance catalog continues to favor innovative drugs, and commercial insurance catalogues are gradually being implemented. The “medical insurance + commercial insurance” multi-channel payment system opens long-term growth space for the industry.

Looking ahead, Huatai-PineBridge Fund states that 2026 will be a critical year for validating the global value of Chinese innovative drugs. The investment logic will shift from “whether there is BD” to “whether the pipelines exported through BD can produce positive clinical data.” As many domestic innovative drug pipelines enter Phase III clinical trials, the subsequent data readouts will become one of the most important catalysts for the sector. Given the high investment threshold for innovative drugs, ordinary investors may prioritize related ETFs for allocation. The Hang Seng Biotech ETF Huatai-PineBridge (513930) bundles leading Hong Kong innovative drugs and CXO companies, helping to diversify individual stock risks and seize overall sector growth opportunities.

As one of the first domestic ETF managers, Huatai-PineBridge Fund has over 19 years of experience in index investing and was awarded the “Golden Bull Fund Company for Passive Investment” by China Securities Journal for the eighth time in December 2025. In the healthcare sector, Huatai-PineBridge has extensive experience and has built a “pharmaceutical index toolkit” covering key industry segments, continuously launching quality products such as the innovative drug ETF Huatai-PineBridge (517120), healthcare ETF Huatai-PineBridge (516790), Chinese medicine ETF Huatai-PineBridge (561510), and Hang Seng Innovative Drug ETF Huatai-PineBridge (520500).