On the afternoon of September 8th, the Hong Kong Stock Connect healthcare sector suddenly saw a sharp uptick. CXO stocks rallied broadly, with GenScript Biotech surging over 12%, Biocytogen Pharmaceuticals (Beijing) Co., Ltd. (HKEX: 02315) climbing more than 9%, while Tigermed Consulting Co., Ltd. (HKEX: 03347) and Asymchem Laboratories (Tianjin) Co., Ltd. (HKEX: 06821) each gained over 7%. WuXi XDC (HKEX: 02268) also rose by more than 4%.
The benchmark index for the Hang Seng HK Healthcare ETF (159137), which holds a CXO composition exceeding 50%, advanced nearly 2% in afternoon trading. In company news, GenScript announced last Friday its plan to spin off its indirect non-wholly owned subsidiary, Probio, for an independent listing on the Main Board of the Stock Exchange of Hong Kong, which initially triggered panic selling. After a weekend of reflection, the market has gradually recognized that the spinoff could help alleviate the redemption pressure of Probio's preferred shares due in 2027. Since GenScript will retain its controlling stake and continue to consolidate the subsidiary's financials, the spinoff is essentially a value release rather than a dilution.
On the industrial front, the innovative drug Istevir Tablets, developed jointly by Westlake University, Westlake Laboratory, and Westlake Pharmaceutical (Hangzhou) Co., Ltd., recently received conditional approval for market launch from the National Medical Products Administration. Ipsvir is the first original drug in China to gain approval with the assistance of artificial intelligence (AI) in its development. Analysts point out that AI-driven pharmaceutical development may be approaching an inflection point in demand.
For full-chain exposure to innovative drugs, two T+0 trading vehicles are worth noting: Hang Seng HK Healthcare ETF (159137), which passively tracks the Hang Seng HK Healthcare Thematic Index, heavily weighted in the innovative drug supply chain, with 50% in CXO and 20% in innovative drugs, including a combined WuXi AppTec group weighting exceeding 38%. The off-exchange feeder fund is 026922. Additionally, Hang Seng HK Innovative Drug ETF (520880) passively tracks the Hang Seng HK Innovative Drug Select Index, with 100% allocation to innovative drug R&D companies, focusing 70% of its positions on R&D leaders. Its off-exchange feeder fund is 025221.
Data sources include public information from the Shanghai, Shenzhen, and Hong Kong stock exchanges, the China Securities Index Company, and the Hang Seng Index Company. Regarding fees, ETF funds do not charge sales service fees. Investors may incur commissions of up to 0.5% from their brokers when subscribing or redeeming fund shares, which includes fees charged by stock exchanges and registration institutions. Detailed fund rates are specified in each fund's legal documents.
Special note: Fund managers assess the risk level of Hang Seng HK Healthcare ETF, Hang Seng HK Innovative Drug ETF, and their feeder funds as R4 (medium-high risk), suitable for aggressive (C4) and above investors. Risk disclaimer: Index constituent stocks mentioned are for illustrative purposes only, and their descriptions do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund managed by the manager. As of August 31, 2026, the specific weights of the mentioned stocks in the relevant indices are shown in the accompanying charts: for the Hang Seng HK Healthcare Thematic Index, WuXi Biologics holds an 18.77% weight, Pharmaron 1.55%, and Asymchem 0.53%. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of statements) is for reference only. Investors must take full responsibility for their own investment decisions. Additionally, any views, analyses, or forecasts herein do not constitute investment advice to readers and do not bear liability for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund; past performance does not represent future results. Investing in funds carries risks.