Today, the revised compilation methodology of the Hang Seng Stock Connect Hong Kong Innovative Drug Index officially took effect, explicitly excluding pharmaceutical outsourcing companies (CXOs), making it one of the first 100% "pure" innovative drug indices tracked by ETFs. After this adjustment, all index constituents are innovative drug companies, more accurately reflecting industry trends.

The revision removed 5 CXO companies, which originally accounted for approximately 20% of the index weight and underperformed the overall index this year. Backtesting shows that after excluding CXOs, the index's performance improved from its launch date in 2023 through 2024 and year-to-date 2025. Since the index's launch on July 10, 2023, the revised index achieved an annualized return of over 47% and a higher Sharpe ratio.

In recent years, China's innovative drug industry has achieved remarkable results, with its pipeline reserves rising to the second-largest globally, attracting multinational pharmaceutical companies to significantly increase patent acquisitions. The enhanced international competitiveness of Chinese innovative drugs has also become a key basis for the stock market's repricing of these assets, with the Hang Seng Stock Connect Hong Kong Innovative Drug Index surging nearly 100% year-to-date. As the only product tracking this index, the Hang Seng Innovative Drug ETF (159316) helps investors precisely target cutting-edge innovative drug companies in the Hong Kong market.