The first stock index futures for Hong Kong's pharmaceutical sector—the Hang Seng Biotechnology Index Futures—officially commenced trading today. The launch of these index futures not only adds a new trading product but also, by enhancing market liquidity, pricing efficiency, and risk management capabilities, collectively propels Hong Kong's biotechnology sector into a new phase of greater maturity, stability, and international influence.

Since the beginning of this year, the innovative drug sector in the Hong Kong stock market has performed strongly, with several indices seeing year-to-date gains exceeding 100% at one point. Against the backdrop of globally accommodative liquidity, the highly flexible biotechnology sector continues to attract capital attention and has now entered a phase of value reassessment.

Additionally, the state has issued an implementation plan providing comprehensive support for the development of innovative drugs, and the "going global" progress of innovative drugs has been remarkable, with BD transaction volumes surpassing $100 billion for the first time. The financial data of listed companies has generally improved, with an increasing number of firms turning losses into profits. The industry is entering a new stage driven by the dual engines of "cash flow recovery + liquidity improvement."

According to an announcement from the National Healthcare Security Administration, the new version of the National Reimbursement Drug List (NRDL) and the first version of the Commercial Health Insurance Innovative Drug List are scheduled to be released simultaneously online and offline in Guangzhou on the first weekend of December, with formal implementation starting January 1 next year. From the perspective of pharmaceutical companies, most innovative drugs included in the NRDL and commercial health insurance are in the early stages of volume expansion. As policy dividends are released, these drugs are expected to rapidly increase in volume. The gradual promotion of commercial health insurance is expected to diversify payment sources for innovative drug costs, fostering a virtuous cycle in the payment ecosystem for innovative drugs.

The Hang Seng Pharmaceutical ETF (159892) ranks first in scale among ETFs tracking the Hang Seng Biotechnology Index, with good liquidity. It focuses on innovative drugs, CXO, and related industries, covering numerous innovative targets (such as BeiGene, Innovent Biologics, Akeso, etc.) under the advantage of HKEX's Chapter 18A regime. Under the main themes of innovation and global expansion, it is poised to continue the trend of value reassessment.