China's 15th Five-Year Plan and Clinical Wins Fuel Surge in Innovative Drug Stocks
China's innovative drug stocks surged in September 2026, driven by the release of the 15th Five-Year Plan for the pharmaceutical industry, which targets over 20% annual growth for the sector by 2030. The rally was further boosted by positive Phase III clinical data from Chinese firms at the World Lung Cancer Conference, record out-licensing deals exceeding $120 billion, and regulatory pledges to support innovation and overseas expansion. Hong Kong-listed biotech ETFs rose over 5% on September 21.
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China's Innovative Drug Rally: Three-Month Surge Driven by Policy and Fundamentals
This article from Tencent Finance analyzes the strong performance of China's innovative drug (创新药) sector in the third quarter of 2026. From July to September, A-share and Hong Kong-listed innovative drug stocks rose over 25% and 30% respectively, driven by a solidification of policy support and fundamental improvements. The market is structured into three tiers: first, ADC and bispecific/multispecific antibodies, where Chinese firms have become global leaders; second, GLP-1 metabolic disease treatments, offering high certainty and steady growth; and third, frontier areas like siRNA, cell therapy, and nuclear drugs, which carry high risk and high reward. The article notes that the rally has enabled capital operations, with companies like Sino Biopharmaceutical engaging in acquisitions and many firms securing overseas licensing deals. It attributes the outlook to specific conditions, including policy reforms like the 2026 National Essential Drug List and patent-period exemptions from volume-based procurement, as well as strong earnings from key players like BeiGene and Hengrui Medicine.
China's 15th Five-Year Plan Boosts Innovative Drug Sector; Hong Kong Biotech ETF Gains Attention
On September 18, ten Chinese ministries including the Ministry of Industry and Information Technology jointly released the '15th Five-Year Plan for Pharmaceutical Industry Development,' positioning biomedicine as a 'strategic emerging industry' and 'new pillar industry.' The plan sets 10 targets, with six directly focused on innovation, including raising average R&D investment intensity of listed pharmaceutical companies to over 10% annually and increasing first-in-class (FIC) drugs to over 25% of the global share by 2030. It also aims for industry revenue to exceed 3.5 trillion yuan. The plan emphasizes supporting CRO/CDMO services, dual antibodies, ADC, cell and gene therapy, and mRNA drugs, and calls for a full-cycle drug pricing mechanism and expanded commercial health insurance. The article notes that China's innovative drug pipeline has reached 4,751 candidates (33.7% of global total), and outbound licensing deals hit a record $956.87 billion in 2025. The article promotes the Invesco Hong Kong-listed innovative drug ETF (513780), which tracks the CSI Hong Kong Stock Connect Innovative Drug Index, highlighting its high purity in biotech and chemical drug sectors and exposure to key Hong Kong-listed biotech firms like WuXi Biologics and BeiGene. The analysis concludes that the sector is transitioning from a 'investment phase' to a 'self-sustaining profitability phase.'
Read sourceChina's 15th Five-Year Plan Boosts Innovative Drug Exports, AI Pharma Commercialization Accelerates
On September 23, the Hong Kong Stock Connect Healthcare Theme Index rose 0.99%, driven by gains in stocks like Genscript Biotech and WuXi Biologics. China's National Medical Products Administration announced that during the 15th Five-Year Plan period (2026-2030), it will advance drug trial data protection and market exclusivity periods for pediatric and rare disease drugs, while supporting innovative drug companies in going global. The Ministry of Industry and Information Technology and nine other departments released the pharmaceutical industry's 15th Five-Year Plan, targeting an average annual growth rate of over 20% for the innovative drug industry by 2030, deepening AI empowerment in the pharmaceutical sector, and encouraging Chinese pharmaceutical companies to expand overseas. In a related development, Eli Lilly's TuneLab partnered with Genscript Biotech on September 21 for protein expression and purification training data, while Insilico Medicine reported a 287% year-on-year revenue increase in its 2026 interim report, with over 90% of revenue from AI-driven platform licensing. Huayuan Securities noted that the innovative drug industry is improving across multiple dimensions, with CRO demand gradually recovering. The Hang Seng Stock Connect Healthcare ETF (520850) tracks the CSI Hong Kong Stock Connect Healthcare Theme Index.
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China's innovative drug out-licensing deals top $120 billion; 15th Five-Year Plan released
On September 23, the CSI Innovative Drug Index rose 0.98% by 10:30, driven by gains in stocks such as Ailisi Pharmaceutical (up over 8%) and Gan & Lee Pharmaceutical (up over 3%). The article reports that China's innovative drug out-licensing deals have exceeded $120 billion year-to-date, a 36% year-on-year increase, with upfront payments surpassing $10 billion. The industry is shifting from quantity-based competition to quality-focused development, with companies voluntarily terminating non-differentiated pipeline projects. On September 18, China's Ministry of Industry and Information Technology and nine other departments released the 15th Five-Year Plan for the pharmaceutical industry, targeting an average annual growth rate of over 20% for the innovative drug sector by 2030. In 2025, over 2,900 new drug clinical trials were registered, up 18% year-on-year, with cell and gene therapy trials growing about 30% annually. Multiple multinational pharmaceutical companies are expanding R&D centers and production bases in China. The National Medical Products Administration will improve early-stage R&D communication mechanisms to accelerate clinical approvals. Analysts at Industrial Securities expressed a positive outlook for the innovative drug supply chain. The article also promotes the Innovative Drug ETF (516080), which tracks the CSI Innovative Drug Index.
Read sourceChina's 15th Five-Year Plan Targets 3.5 Trillion Yuan Pharma Revenue, AI Brain-Computer Standard Issued
China's pharmaceutical sector received multiple catalysts. The Ministry of Industry and Information Technology and nine other departments jointly released the '15th Five-Year Plan for Pharmaceutical Industry Development,' designating biomedicine as a national emerging pillar industry. The plan sets quantitative targets: revenue of industrial pharmaceutical enterprises above designated size exceeding 3.5 trillion yuan by 2030, and annual growth of the innovative drug industry exceeding 20%. Separately, the National Medical Products Administration issued the world's first AI EEG data brain-computer interface medical device standard, marking a new phase of standardized regulation for AI-medical hardware integration. On the industry front, China's innovative drug out-licensing deals have exceeded $120 billion in total value this year, up 36% year-on-year, with upfront payments exceeding $10 billion. Huayuan Securities' latest research report states that the innovative drug industry is improving across multiple dimensions, with CRO demand gradually recovering. It notes that China's dual-policy environment for innovative drug approval and payment is improving, and clinical CRO demand continues to recover, with the market expected to expand. As of 10:06 on September 23, 2026, the SSE STAR Biomedical Index rose 1.28%, with specific stocks and ETFs mentioned.
Read sourceHong Kong Innovative Drug Stocks Rise as Regulator Pledges Support and CRO Demand Recovers
On Wednesday morning, Hong Kong stocks faced pressure, but the pharmaceutical sector bucked the trend, with the Hang Seng Stock Connect Innovative Drug and Healthcare Index rising 1.16% by 10:01 AM. The National Medical Products Administration recently stated that during the '15th Five-Year Plan' period, it will advance systems such as drug trial data protection and market exclusivity periods for pediatric and rare disease drugs, while supporting innovative drug companies in going overseas. Huayuan Securities' latest research report indicates that the innovative drug industry is improving in multiple dimensions, with CRO demand gradually recovering. The report notes that China's innovative drug approval and payment policies are improving, clinical CRO demand is continuing to recover, and the market is expected to expand. The Hangzhou Stock Connect Innovative Drug and Healthcare ETF, managed by Fullgoal, tracks this index closely, excluding stocks with the lowest R&D/revenue ratios to emphasize innovation. Investors without on-exchange accounts can also consider the Fullgoal Hang Seng Stock Connect Innovative Drug and Healthcare ETF-linked fund.
Policy and Overseas Expansion Drive Pharma Rally; Southern Fund's Innovation Drug ETF Rises 4.09%
On September 21, 2026, the pharmaceutical sector surged, led by innovation drug stocks, with the CSI Innovation Drug Industry Index closing up 4.09%. The rally was directly catalyzed by the '15th Five-Year Plan for the Pharmaceutical Industry Development', jointly issued by ten government departments including the Ministry of Industry and Information Technology on September 18. The plan designates biomedicine as a national emerging pillar industry and calls for accelerating the application of artificial intelligence in drug R&D. Additionally, the National Medical Products Administration reported that China's total value of out-licensing deals for innovative drugs has exceeded $120 billion this year, a 36% year-on-year increase, with upfront payments surpassing $10 billion, validating the overseas expansion narrative. The market's tolerance for innovation drug valuations has increased amid a wave of global AI drug development partnerships. Analysts attribute the sector's strength to a triple driver of policy support, earnings improvement, and global expansion. Looking ahead, the sector is expected to maintain its strong momentum as market sentiment improves and demand for a balanced allocation between growth and defensive assets rises around the holidays.
Read sourceMultiple Catalysts Boost Hong Kong Biotech Stocks; Henlius Rises Over 10% Intraday
Hong Kong-listed innovative drug stocks rallied on September 21, driven by multiple catalysts. Junshi Biosciences rose 10.23%, Henlius gained 9.88%, and other biotech firms also saw significant gains. The surge followed the release of the '15th Five-Year Plan for Pharmaceutical Industry Development' by ten Chinese government departments, which sets targets including an average annual growth rate of no less than 20% for the innovative drug industry by 2030, first-in-class drugs accounting for at least 25% globally, and average R&D intensity of listed pharmaceutical companies exceeding 10%. Additionally, China's National Medical Products Administration approved the country's third brain-computer interface medical device standard, the world's first to use AI for processing EEG data. At the 2026 World Lung Cancer Conference, Chinese innovative drugs including Akeso's ivonescimab and Hansoh Pharma's HS-20093 presented positive Phase III endpoint data. Henlius led gains after its biosimilar adalimumab received marketing approval from the Pakistani drug regulator, and the company was officially included in the Stock Connect program effective September 7, 2026.
Read sourceChina's 15th Five-Year Plan Boosts Innovative Drugs; Hong Kong Biotech ETF Surges Over 5%
On September 21, Hong Kong stock markets rallied, with the CSI Hong Kong Innovative Drug Index rising over 5%. The move followed the release of the '15th Five-Year Plan for the Pharmaceutical Industry' by ten Chinese government departments, including the Ministry of Industry and Information Technology. The plan calls for accelerating the application of AI, quantum computing, and other new technologies in drug R&D, and exploring new production models such as space-based pharmaceuticals. Separately, China's National Medical Products Administration pledged continued support for innovative drugs and devices during the plan period. Multiple AI drug discovery collaborations were announced, including partnerships between Novo Nordisk and Anthropic, and between Lilly's TuneLab and金斯瑞 (GenScript) and Twist. ByteDance-incubated AI drug platform Anew Labs raised $290 million in its first external funding round. Changcheng Guorui Securities advised focusing on platform-based drug companies with differentiated clinical value and overseas commercialization potential. The article also noted that the Hong Kong Innovative Drug Index trades at a PE-TTM of about 34x, near a 5-year historical low of 29%, and that a profit inflection point may have been reached based on strong first-half 2026 revenue growth among listed biotech firms.
Read sourceHong Kong Stock Connect Innovative Drug ETF Index Surges Over 5% on Policy and Industry Catalysts
On September 21, 2026, the Guozheng Hong Kong Stock Connect Innovative Drug Index, tracked by the Hong Kong Stock Connect Innovative Drug ETF Peng Hua (159286), surged 5.23% by 10:08 AM. The rally was driven by dual catalysts: policy support and industry progress. On September 20, China's National Medical Products Administration announced plans to support large-scale,集约化, and high-end development of the pharmaceutical industry, aiming to cultivate 3-5 globally competitive biomedical innovation clusters. It also pledged to encourage foreign investment in domestic production of original drugs and high-end medical equipment, and support Chinese companies' overseas expansion. Previously, ten ministries including the Ministry of Industry and Information Technology jointly released the 15th Five-Year Plan for Pharmaceutical Industry Development, calling for accelerated布局 of cutting-edge technologies and cross-disciplinary collaboration. On the industry front, at the 2026 World Lung Cancer Conference (WCLC), Chinese innovative drugs achieved multiple breakthroughs in lung cancer treatment, with IO bispecific antibodies, ADCs, and small-molecule targeted drugs entering Phase III clinical trials and globalization stages. CITIC Securities noted that Chinese pharmaceutical companies have transitioned from follow-on innovation to original innovation and global leadership, particularly in bispecific antibodies and ADC tracks, with the development logic accelerating toward MeBetter and First-in-Class drugs. Key index constituents including Junshi Biosciences, Luye Pharma, and Akeso posted gains of 8.67%, 8.00%, and 7.90% respectively.
Read sourceChina's Innovative Drug Policies and Licensing Deals Boost Hong Kong Biotech ETF
On September 21, the Hang Seng Hong Kong Stock Connect Innovative Drug Index rose 2.83%, driven by strong performances from stocks like Insilico Medicine and Zai Lab. The surge follows a series of positive policy developments and industry data. The 2026 Zhangjiang Pharma Valley Conference concluded, revealing that from January to August, China recorded 113 biopharmaceutical out-licensing deals totaling $119.97 billion, with Shanghai accounting for 33% of the transactions. On September 20, National Medical Products Administration Deputy Director Yang Sheng announced that 59 innovative drugs have been approved in China this year, and the '15th Five-Year Plan' period will prioritize review resources for innovative drugs, implement data protection systems, and establish market exclusivity periods for children's and rare disease drugs. On September 18, the Ministry of Industry and Information Technology and nine other departments released the '15th Five-Year Plan' for the pharmaceutical industry, targeting an average annual growth rate of over 20% for the innovative drug sector. Additionally, AnewLabs, an AI drug discovery spin-off from ByteDance, raised $290 million in its first funding round. Analysts at Changcheng Guorui Securities recommend focusing on innovative drug stocks with differentiated clinical value and robust pipelines. The article promotes the Hang Seng Hong Kong Stock Connect Innovative Drug Index ETF (159316), which excludes CRO/CMO companies and focuses purely on innovative drug firms.
Read sourceChina's Ten Ministries Issue 15th Five-Year Plan for Pharmaceutical Industry; Hong Kong Biotech ETF Rises
On September 21, the Hong Kong Stock Connect Innovative Drug ETF tracked by Wanjia rose 4.07% by 9:45 AM, with turnover reaching 1.24 billion yuan. Individual stocks including Lepu Biopharma, InnoCare Pharma, Junshi Biosciences, Everest Medicines, RemeGen, Ascentage Pharma, and Luye Pharma all gained over 5%. The rally followed the September 18 joint issuance of the '15th Five-Year Plan for Pharmaceutical Industry Development' by ten Chinese ministries including MIIT and NDRC. The plan calls for cultivating innovative drug and device industries, increasing R&D investment in oncology and metabolic diseases, and supporting AI and computational medicine to empower drug R&D. Analysts at Industrial Securities stated that innovation and internationalization remain the core themes, with global competitiveness of domestic innovative drugs strengthening. Guojin Securities noted fundamental improvements in the innovative drug sector, with companies entering a harvest period due to clinical progress and insurance policy support, but warned of differentiation risks for early-stage biotech firms.
Read sourceHong Kong Stock Connect Innovative Drug ETF Surges 5% on Policy and Industry Catalysts
On September 20, China's National Medical Products Administration announced plans to support large-scale, intensive, and high-end development of the pharmaceutical industry, aiming to cultivate 3-5 internationally competitive biomedical innovation clusters. The regulator also pledged to expand foreign cooperation, encouraging foreign companies to bring original drugs and high-end medical equipment into domestic production, while supporting Chinese firms' overseas expansion. This follows the release of the '15th Five-Year Plan' for the pharmaceutical industry by ten ministries, which calls for accelerating frontier technology and product deployment. At the 2026 World Lung Cancer Conference (WCLC), Chinese innovative drugs achieved multiple breakthroughs in lung cancer treatment, with IO bispecific antibodies, ADCs, and small-molecule targeted drugs entering Phase III clinical trials and globalization stages. CITIC Securities noted that Chinese drugmakers have shifted from follow-on innovation to original innovation and global leadership, particularly in bispecific antibodies and ADC platforms. As of 11:08 on September 21, 2026, the Hong Kong Stock Connect Innovative Drug ETF (159286) rose 5.07%, with component stocks Junshi Biosciences up 9.42% and Kangfang Biotech up 8.40%. The ETF tracks the Guozheng Hong Kong Stock Connect Innovative Drug Index, whose top ten constituents include Innovent Biologics, BeiGene, CSPC Pharmaceutical Group, and others, accounting for 75.67% of the index weight as of August 31, 2026.
Read sourceMultiple Catalysts Boost Hong Kong Biotech Stocks; Henlius Rises Over 10% Intraday
Hong Kong-listed innovative drug stocks surged on September 21, driven by multiple catalysts. Junshi Biosciences rose 10.23%, Henlius gained 9.88%, InnoCare Pharma added 8.09%, Akeso Inc. rose 7.62%, and RemeGen Co. increased 6.69%. The rally was fueled by the release of the 'Fifteenth Five-Year Plan' for the pharmaceutical industry by ten Chinese government departments, including the Ministry of Industry and Information Technology and the National Medical Products Administration. The plan targets an average annual growth rate of no less than 20% for the innovative drug industry by 2030, with first-in-class drugs accounting for at least 25% of the global share, and an average R&D investment intensity of over 10% for listed pharmaceutical companies. Additionally, the National Medical Products Administration approved China's third brain-computer interface medical device standard, accelerating clinical translation. Key data from the 2026 World Conference on Lung Cancer (WCLC) also boosted sentiment, with Akeso's ivonescimab and Hansoh Pharma's HS-20093 reporting positive Phase III results. Henlius led gains after announcing its biosimilar adalimumab (Han Dayuan) received marketing approval in Pakistan and its inclusion in the Hong Kong Stock Connect program, effective September 7, 2026.
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