Multiple policy news is good! Hang Seng Innovative Drugs ETF (520500) both hit new highs in size and share

Recently, my country’s policies in the field of innovative drugs have been frequently positive. From the emergence of new drug research and development results to the improvement of review and approval efficiency, multiple positive factors have jointly pushed the industry into a new stage of high-quality development. In this context, the Hang Seng Innovative Drugs ETF (520500), as the only ETF in the market currently tracking the Hang Seng Innovative Drugs Index, has demonstrated strong financial appeal and market performance. Its scale and share have both reached a record high since its establishment in 2024/12/16 and has become an important tool for investors to deploy the innovative drugs sector.
Exchange data shows that as of September 12, 2025, the scale of the Hang Seng Innovative Drugs ETF (520500) reached 1.578 billion yuan, with a share of 771 million shares. Since August, the growth rate has reached 46% and 49% respectively, both reaching record highs. The average daily turnover of the ETF since September has reached 1.254 billion yuan, showing good liquidity and reflecting the continued optimism of funds in the innovative drugs sector. (Source of share and scale data: Exchange, the scale and share at the beginning of August were 1.081 billion yuan and 546 million copies respectively; other data source: Wind)
The policy level has recently released positive results. On September 11, 2025, the press conference of the State Council Information Office disclosed that during the “14th Five-Year Plan” period, the number of new drugs under development in my country accounted for more than 20% of the world, ranking second in the world. Suglimab, ensartinib, etc. Domestic innovative drugs have been successively approved for marketing.Data from the State Food and Drug Administration shows that during the “14th Five-Year Plan” period, a total of 210 innovative drugs and 269innovative medicaldevices were approved. In the first half of 2025, the total amount of external authorization of innovative drugs reached nearly US$66 billion, indicating that the global market has recognized innovative drugs in China. The degree of recognition continues to increase.
On September 12, the executive meeting of the State Council reviewed and approved the “Regulations on the Management of Clinical Research and Clinical Transformation Application of New Biomedical Technologies (Draft)”, emphasizing promoting the innovative development of biomedical technology and accelerating research and development and transformation of results. On the same day, the State Food and Drug Administration issued an announcement to optimize the review and approval of clinical trials of innovative drugs, marking that IND approval has officially entered the “30-day” era of efficiency, greatly improving the efficiency and predictability of clinical research and development.
The Hang Seng Innovative Drugs Index tracked by the Hang Seng Innovative Drugs ETF (520500) revised its compilation plan on August 11, 2025, excluding CXO industry companies, focusing more on the middle and upstream areas of the innovative drug industry chain such as biology, chemical pharmaceuticals and bulk drugs, highlighting the dual main lines of “innovation” and “pharmacy”. The ETF invests in Hong Kong stock innovative drug companies with strong R & D strength and high growth potential through the QDII mechanism. It is an effective tool that is expected to help seize Hong Kong stock innovative drug investment opportunities.
Everbright Securitiespointed out that the country’s work arrangements to support the development of the entire chain of innovative drugs are being implemented one by one. Through a combination of multiple levels such as research and development, access and payment, and clinical application, a closed-loop system for the high-quality development of innovative drugs has been built, which is expected to promote China has leapfrogged towards an “innovative drug power” and is optimistic about leading innovative drug companies, characteristic biotech and CXO industrial chains in sub-fields. (Source of research report: Everbright Securities-IND approval for innovative drugs has been shortened to 30 days, optimistic about the domesticinnovation industry chain-2025/9/14)
The innovative drugs sector, whose fundamentals are gradually warming up, may still deserve attention. In addition, against the background of rising expectations of the Federal Reserve’s interest rate cuts, the offshore Hong Kong stock market is expected to benefit more. The Hang Seng Innovative Drugs ETF (520500), which has both Hong Kong stock beta and innovative drug alpha resonance, is becoming more attractive. The Hang Seng Innovative Drugs ETF (520500) is large in scale, has excellent liquidity, and supports on-site T+0. It is expected to serve as an effective tool to help investors seize innovative drug opportunities in Hong Kong stocks.
Policy sources: 2025/9/12, State Food and Drug Administration-“Announcement on Optimizing Matters Related to the Review and Approval of Clinical Trials of Innovative Drugs”; 2025/9/12, State Council Executive Meeting-“Clinical Research and Clinical Transformation Application Management Regulations (Draft)”.
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