Hong Kong Stock Connect Innovative Drug ETF Penghua(159286) attempts to achieve a three-day rally, with the total BD transaction volume for innovative drugs in the first quarter surpassing $60 billion.

On the news front, the latest data released by the National Medical Products Administration shows that in the first three months of this year, China’s innovative drug out-licensing (BD) deals totaled more than $60 billion, already approaching half of the full-year 2025 total of $135.7 billion. As of March 27, 10 innovative drugs had been approved in 2026, with domestic innovative drugs accounting for 8 of them.

Everbright Securities noted that, with changes in domestic and overseas macroeconomic and policy conditions, the investment logic in the pharmaceutical sector has increasingly focused on the essence of clinical value. Because the innovative drug industry chain has the ability to address core clinical needs of both patients and providers, it is receiving higher premiums. With the long-term care insurance system officially rolled out, and industry bottlenecks being alleviated from the payment side, it will further strengthen the foundation for innovative drugs to achieve greater accessibility and sustainable volume growth in the real world.

As of March 31, 2026, 09:30, the CSI Hong Kong Stock Connect Innovative Drug Index (987018) rose 0.84%. Among constituent stocks, Ying’en Bio-B rose 2.85%, BeiGene rose 2.34%, Hansoh Pharmaceutical rose 2.21%, CanSino Biologics rose 2.03%, Tigermed-A rose 1.72%. The Hong Kong Stock Connect Innovative Drug ETF (Penghua) (159286) rose 0.37%, and is attempting a third consecutive up day. The latest price is reported at 0.81 yuan.

The Hong Kong Stock Connect Innovative Drug ETF (Penghua) closely tracks the CSI Hong Kong Stock Connect Innovative Drug Index. The CSI Hong Kong Stock Connect Innovative Drug Index aims to reflect the operating characteristics of listed companies in the innovative drug sector within the scope of the Hong Kong Stock Connect.

Data shows that as of February 27, 2026, the top ten weighted stocks of the CSI Hong Kong Stock Connect Innovative Drug Index (987018) were Shijiazhuang Pharmaceutical Group, Innovent Biologics, BeiGene, China Biopharmaceutical, Kangfang Bio, Hansoh Pharmaceutical, Sine Pharmaceutical, Colobio Biotech-B, Kangzhe Pharmaceutical, and United Laboratories. The top ten weighted stocks together accounted for 73.53%.