The world's only! Kangfang Biotech's triple antibody approved for clinical trials, surged over 9%! Huabao Fund Hong Kong Stock Connect Innovative Drug ETF strongly rose to 4.62%, with new constituent stocks soaring collectively.

On the morning of March 10th, the Hong Kong stock market rebounded across the board, with innovative drugs leading the way. The high-elasticity Hong Kong Stock Connect Innovation Drug ETF (520880) rebounded sharply after a short-term correction yesterday, opening high and continuing to rise to 4.62%! The newly added constituent stocks performed excellently, with QiFang Medicine-B, BaiAoSaiTu-B, and KeJi Pharmaceutical-B all soaring collectively. The heavyweight stock KangFang Bio surged over 9%.

According to the CDE official website, KangFang Bio’s self-developed injectable AK150 has officially received clinical approval, indicated for advanced solid tumors. Based on public information, this is currently the only three-antibody candidate targeting LILRB1/LILRB2/CSF1R in clinical development worldwide.

Yesterday, the Huabao Fund Hong Kong Stock Connect Innovation Drug ETF (520880) benchmark index (Hang Seng Hong Kong Stock Connect Innovation Drug Selection Index) underwent a major rebalancing that took effect officially!

According to the Hang Seng Index Company announcement, this rebalancing involved “13 in, 0 out”, increasing the number of constituent stocks in the Hang Seng Hong Kong Stock Connect Innovation Drug Selection Index to 50, further expanding the innovation drug R&D family. The 13 new members come from cutting-edge fields such as AI drug development, gene editing, small molecules, and bispecific antibodies, significantly enhancing the index’s representation of innovative drug R&D.

In terms of market capitalization, among the 13 newly added stocks, 12 have a market value exceeding HKD 10 billion, including industry leaders like InSilico Smart and BaoJi Pharmaceuticals-B, with some exceeding HKD 30 billion. This brings a total market cap increase of over HKD 240 billion for the index. The latest total market value of the index constituents has risen to HKD 2.27 trillion, greatly strengthening its leading attributes.

It is worth noting that there is a major signal in the Hong Kong stock capital flow! Yesterday, southbound funds recorded a net purchase of HKD 37.213 billion, setting a new record, surpassing the single-day net purchase of HKD 35.876 billion on August 15, 2025.

Regarding the Hong Kong innovation drug sector, Dongwu Securities stated that most innovation drug companies’ stock prices have significantly retreated from their 2025 highs, with valuations and sentiment at stage lows. However, from the perspective of ongoing industry BD achievements and pipeline progress, short-term stock price fluctuations have not changed the long-term growth logic of going global for innovative drugs. The sector remains strongly optimistic about the medium- to long-term allocation value of innovation drugs.

Actively seize the opportunity for a rebound in innovative drugs, focusing on Hong Kong Stock Connect Innovation Drug ETF (520880) and its OTC connect fund (025221), fully allocating to innovative drug R&D companies. The top ten heavyweight stocks account for over 70%, with prominent leading attributes.

Data sources: China Securities Index Co., Ltd., Shanghai and Shenzhen-Hong Kong Stock Exchanges, etc. Institutional opinion source: Dongwu Securities, March 8, “Pharmaceutical & Biotech Industry Weekly: Two Sessions List Innovation Drugs as a New Pillar Industry, BD Going Global Accelerates Again in 2026.”

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Risk warning: The index components listed are for display only. Stock descriptions are not investment advice and do not represent holdings or trading trends of any fund managed by the manager. The risk level of the Hong Kong Stock Connect Innovation Drug ETF, Hong Kong Stock Connect Healthcare ETF (Huabao), and Healthcare ETF Link Funds assessed by the fund manager is R4—medium-high risk, suitable for active investors (C4) and above. The risk level of Healthcare ETFs and Pharma ETFs is R3—medium risk, suitable for balanced investors (C3) and above. Any information presented herein (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of statements) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any opinions, analyses, or forecasts in this document do not constitute investment advice and do not hold the fund manager responsible for any direct or indirect losses resulting from the use of this content. Performance of other funds managed by the fund manager does not guarantee fund performance, past performance does not indicate future results, and investing in funds involves risks.