With the official release of the preliminary review results for the national medical insurance reimbursement list, the dual-track negotiation process involving both "medical insurance + commercial insurance" has officially entered the implementation phase. The innovative drug industry is now entering a period of concentrated policy dividend release. The coordinated advancement of three key institutional reforms—changes to medical insurance access mechanisms, the integration of commercial insurance, and the optimization of centralized procurement rules—has effectively boosted trading activity within the sector. Bolstered by these developments, the trading momentum for the HUATAI BAIRUI HANG SENG INNOVATION DRUG TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (QDII) (520500), currently the only ETF tracking the Hang Seng Innovation Drug Index in the market, has also risen. As of the close of the morning session today, its half-day turnover had already exceeded 1.08 billion yuan, reaching 64% of yesterday's full-day turnover, demonstrating relatively prominent liquidity advantages.

From an industry perspective, positive signals continue to emerge, with the commercialization of new drugs and overseas technology licensing business accelerating simultaneously. Several self-developed innovative drugs have recently completed market approval processes. In May, the industry completed two overseas Business Development (BD) collaborations each valued at over ten billion US dollars, indicating growing international recognition of China's new drug R&D capabilities. According to statistics, as of the end of May this year, the total value of out-licensing deals by domestic pharmaceutical companies' pipelines reached $89.4 billion, already accounting for 66% of the total for the entire previous year, suggesting the annual transaction volume is poised to reach a new high.

Looking at the R&D front, the innovative drug sector also exhibits robust development momentum. In 2025, the total number of drug clinical trial registrations in China reached 5,215, surpassing 5,000 for the first time, doubling from 2020. Among these, new drug clinical trials accounted for 2,997, or 57.5%, representing an 18% year-on-year increase. In the first five months of 2026, Investigational New Drug (IND) applications for Class 1 innovative drugs surged by 30% year-on-year. The clinical data from domestic new drugs disclosed at international academic conferences has reached world-class standards, suggesting the industry may be transitioning from an accumulation phase to a concentrated harvest stage.

Guojin Securities noted that as the global competitiveness of domestic innovative drug companies' clinical pipelines continues to improve, and with medical insurance policies and commercial insurance increasingly favoring innovative drugs, several innovative drug companies are expected to enter a sustained period of performance realization. Against the backdrop of strengthening global demand for innovative drug assets, the current Chinese innovative drug sector faces a divergence between improving fundamentals and declining valuations, potentially offering high-elasticity investment value at a low level.

It is reported that the HUATAI BAIRUI HANG SENG INNOVATION DRUG TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (QDII) (520500) closely tracks the Hang Seng Innovation Drug Index, which invests in 40 leading Hong Kong-listed innovative drug companies via the QDII mechanism. The index primarily focuses on mid-to-upstream innovative drug fields such as biopharmaceuticals, chemical pharmaceuticals, and active pharmaceutical ingredients (APIs), assembling a group of R&D-driven companies with strong development capabilities and potential. This ETF features a relatively large scale, superior liquidity, and supports intraday T+0 trading. Against the backdrop of BD deal realization, profit inflection points, and policy support, it could serve as a convenient tool for accessing opportunities in the Hong Kong-listed innovative drug sector.

The fund manager of the HUATAI BAIRUI HANG SENG INNOVATION DRUG TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (QDII) (520500), Huatai-PineBridge Fund Management Co., Ltd., is one of China's first ETF managers, with over 19 years of experience in index investment. It has developed index tools for investors such as the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360), known for their transparency, convenient trading, and low fees. As of the end of March 2026, the company's ETFs had cumulatively generated profits exceeding 223.4 billion yuan for holders over the preceding two years, making it one of only three public fund management companies in the A-share market to achieve cumulative profits over two hundred billion yuan during the same period.