Recently, a number of prominent public funds, such as E Fund, China Asset Management, Fullgoal Fund, and China Universal Asset Management, have substantially increased their stakes in innovative drug companies listed on the Hong Kong stock exchange. Specifically, the shareholding proportions of four stocks—Biocytogen-B, 3SBio, CSPC Pharmaceutical Group, and Kelun-Biotech—have either reached or surpassed the statutory threshold of 5% that designates substantial shareholding.

In tandem with this trend, the Hang Seng Innovative Drug Index has experienced a cumulative rebound of over 20% since the end of June. Industry experts suggest that, propelled by a confluence of factors including policy incentives, the extensive international expansion of China's innovative drug business development (BD) landscape, a turning point in the profitability of leading pharmaceutical firms, and favorable sector valuations, the innovative drug sector in Hong Kong stocks is potentially entering a strategic allocation window.