--- title: "Hong Kong stocks hit a new high in innovative drugs. In the late stage of a bull market, pay attention to the index." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/32028057.md" description: "After a period of correction, Hong Kong's innovative drug sector has once again entered a phase of continued positioning, and it is believed that Hong Kong's innovative drug sector will continue to reach new highs. At that time, some friends on XING were a bit worried, but after yesterday's rise, Hong Kong's innovative drug sector hit new highs as expected. This year, the Hong Kong innovative drug stocks that Brother Qiezheng has been following since the beginning of the year have once again reached new highs. We did warn of certain risks in the middle, but after a period of adjustment, we continued to remind everyone on XING that in the early stages, we suggested that in the Hong Kong innovative drug sector, more attention should be paid to the excess opportunities brought by active stock selection, and we also mentioned some funds..." datetime: "2025-07-21T06:43:30.000Z" locales: - [en](https://longbridge.com/en/topics/32028057.md) - [zh-CN](https://longbridge.com/zh-CN/topics/32028057.md) - [zh-HK](https://longbridge.com/zh-HK/topics/32028057.md) author: "[且涨海外投](https://longbridge.com/en/profiles/18577146.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/32028057.md) | [繁體中文](https://longbridge.com/zh-HK/topics/32028057.md) # Hong Kong stocks hit a new high in innovative drugs. In the late stage of a bull market, pay attention to the index. After a period of correction, Hong Kong's innovative drug sector has once again entered a phase of continued layout, and it is believed that Hong Kong's innovative drug sector will continue to hit new highs. At that time, some friends from XING were a bit worried, but after yesterday's rise, Hong Kong's innovative drug sector reached a new high as expected. This year, the innovative drug stocks in Hong Kong that Brother Qiezhang has been following since the beginning of the year have hit new highs again. We did warn of certain risks in the middle, but after a period of adjustment, we continued to remind everyone on XING, We previously suggested that in the Hong Kong innovative drug sector, more attention should be paid to the excess opportunities brought by active stock selection, and we also mentioned some funds. Currently, these funds do have certain excess returns compared to the index. **However, the Hong Kong innovative drug sector may have now entered the middle stage of a bull market. In the early to middle stages of a bull market, active stock selection can often bring higher excess returns, but once the market enters the middle to late stages, the index's gains often do not lag behind those of actively managed funds, and many actively managed funds may even underperform the index.** The reason for this is that in the middle to late stages of a bull market, many previously underperforming stocks often start to catch up. At this point, asset quality itself is no longer the top priority; more emphasis is placed on position sizing. **When a bull market comes, position sizing is more important than stock selection!** ## In the Hong Kong innovative drug sector, I focus on three indices. ## The first is the SZSE-HKEx Innovative Drug Index. Compared to broad-based indices like the Hang Seng Healthcare Index, this index is more focused on the innovative drug industry chain. Currently, Yinhua, ICBC, and Huatai have issued funds tracking this index. You can directly search for Hong Kong Innovative Drug ETF (159567). ## The second is the Hang Seng HKEx Innovative Drug Select Index. This index further refines the SZSE-HKEx Innovative Drug Index, with only 30 constituent stocks. Therefore, the weight of large-cap stocks is more concentrated, and stocks like BeiGene, Innovent, Kangfang, and WuXi Biologics have larger weights. You can search for HKEx Innovative Drug ETF (520880). ## The third is the Hang Seng Shanghai-Hong Kong-Shenzhen Innovative Drug Select Index. The difference between this index and the second "HKEx" index is that this one is called "Shanghai-Hong Kong-Shenzhen," meaning it includes both A-shares and Hong Kong stocks. This index is selected mainly because traditional A-share listed companies like Hengrui Medicine and WuXi AppTec (though now also listed in Hong Kong) still have high investment value. In this index, for example, the two CXO leaders, WuXi Biologics and WuXi AppTec, account for 18%, making it one of the Hong Kong innovative drug indices with relatively high CXO content, especially the WuXi group. Although the WuXi group frequently reduces holdings, in terms of business model, if China's pharmaceutical innovation capabilities and demand continue to grow, CXO, as an upstream pharmaceutical R&D outsourcing sector, will inevitably benefit. Currently, the fund tracking this index is the Innovative Drug ETF Tianhong (517380). Overall, there are many indices in the Hong Kong pharmaceutical market, and many fund companies track the same index. Searching directly by Chinese name can easily lead to mistakes, so you can search directly by code. (Not for investment purposes) $Yinhua CNI HK Connect Innovative Drugs ETF(159567.SZ) $Hwabao WP Hang Seng SCHK Innovative Drug Select ETF(520880.SH) $Tianhong Hang Seng Shanghai-Shenzhen-Hong Kong Innovative Drugs Selected 50 ETF(517380.SH) $BEONE MEDICINES(06160.HK) $INNOVENT BIO(01801.HK) $WUXI BIO(02269.HK) ### Related Stocks - [Yinhua CNI HK Connect Innovative Drugs ETF (159567.CN)](https://longbridge.com/en/quote/159567.CN.md) - [Hwabao WP Hang Seng SCHK Innovative Drug Select ETF (520880.CN)](https://longbridge.com/en/quote/520880.CN.md) - [Tianhong Hang Seng Shanghai-Shenzhen-Hong Kong Innovative Drugs Selected 50 ETF (517380.CN)](https://longbridge.com/en/quote/517380.CN.md) - [BEONE MEDICINES (06160.HK)](https://longbridge.com/en/quote/06160.HK.md) - [BeOne Medicines (688235.CN)](https://longbridge.com/en/quote/688235.CN.md) - [BeOne Medicines AG (ONC.US)](https://longbridge.com/en/quote/ONC.US.md) - [INNOVENT BIO (01801.HK)](https://longbridge.com/en/quote/01801.HK.md) - [WUXI BIO (02269.HK)](https://longbridge.com/en/quote/02269.HK.md) - [WuXi Biologics (Cayman) Inc. (WXXWY.US)](https://longbridge.com/en/quote/WXXWY.US.md)