Hong Kong healthcare stocks rise against market trend; Hang Seng Healthcare ETF turnover exceeds 200 million yuan

September 23, 2025 — In early trading on September 23, Hong Kong's three major stock indices experienced a collective pullback. However, driven by multiple positive catalysts, the healthcare sector bucked the trend and posted gains.

The Hang Seng Healthcare ETF (159892) saw active trading, with trading volume exceeding RMB 200 million as of 9:50 AM, ranking first among its peers. Within the ETF's holdings, stocks showed mixed performance: 3SBio, XtalPi Holdings, and BeiGene led the gains, while DeShi, Zai Lab, and WuXi XDC declined.

Key Trends in the Innovative Drug Sector

According to Huaxin Securities, the following trends are emerging in the innovative drug space:

1. AI Accelerating Drug R&D: Multinational corporations (MNCs) are shifting from collaborating on AI-driven drug discovery to reshaping the entire drug development infrastructure, driving increased demand for wet-lab experimental validation.

1. Breakthroughs in Cancer Vaccines: Moderna and Merck's mRNA cancer vaccine has shown positive results in adjuvant therapy for melanoma. However, clinical data support for mRNA technology in cancer prevention and treatment still needs further strengthening.

1. Diverging Growth Among Innovative Drug Companies: Domestic innovative drug firms are experiencing clear divergence in growth rates. Companies such as Hutchison China MediTech and Innovent Biologics continue to post high growth with strong momentum in overseas expansion.

1. Rising CDMO Orders: Contract Development and Manufacturing Organization (CDMO) companies are seeing sustained order growth, benefiting from the global ramp-up of blockbuster drugs such as Tirzepatide and Foundayo.

1. TYK2 Target Potential: The market potential of the TYK2 target is gradually being unlocked. Chinese companies are actively positioning themselves in this area, with expectations for more autoimmune disease drugs to enter global markets.

About the Hang Seng Healthcare ETF (159892)

The ETF tracks the Hang Seng Bio-Tech Index, which includes companies listed under Chapter 18A of the Hong Kong Stock Exchange Listing Rules. This regulatory innovation has opened financing channels for biotech companies that are not yet profitable but possess high R&D potential. As a result, the index is well-positioned to capture the most innovative and high-growth frontier companies in China's biomedical sector.

In addition to innovative drug companies, the index also covers CXO leaders, offering a more comprehensive reflection of the innovative drug industry chain. CXO companies have demonstrated stable earnings growth, strong order backlogs, and considerable resilience during market adjustment cycles.

Data source: Wind, as of September 23, 2025. Past index performance does not guarantee future fund performance. Investment in funds carries risks; investors should exercise caution. The stocks mentioned are for industry event analysis only and do not constitute any stock recommendation or investment advice. ETFs are exchange-traded index funds; secondary market prices may involve premium/discount and liquidity risks. Fund performance may have tracking errors relative to the underlying index. Past performance does not represent future returns.

(The institutional views in this article are from licensed securities firms and do not constitute investment advice. They do not represent the views of the platform. Investors should make independent judgments and decisions.)