The underlying index of the Stock Connect (for Hong Kong) Innovative Medicine ETF E Fund (159316) has surged over 37% in the past year.

The Hong Kong Stock Exchange will continue to be closed on April 7 due to the Easter holiday. As of April 2, the Hang Seng Stock Connect Innovative Medicine Index has risen 37.23% over the past year.

The E Fund Hang Seng Stock Connect Innovative Medicine ETF (159316) tracks the Hang Seng Stock Connect Innovative Medicine Index and has continued to see significant capital inflows. As of the previous trading day, the fund recorded a net inflow of 150 million yuan over the past three months, 2.05 billion yuan over the past six months, and 4.592 billion yuan over the past year. Its average daily turnover over the past month was 687 million yuan, ranking first among similar products, indicating active trading and strong liquidity in the secondary market.

On the news front, the 2026 National Reimbursement Drug List officially took effect on April 1, adding 114 new drugs (including 50 Class 1 innovative drugs and 36 anti-tumor drugs), bringing the total number of anti-cancer drugs to over 230. At the same time, outpatient cancer treatment reimbursement ratios have been significantly increased, with employee medical insurance covering at least 90% and resident medical insurance covering at least 80%. Deductibles have been eliminated in most regions, and a dual-channel reimbursement system has been established, greatly alleviating the pain points of innovative drugs regarding "difficult hospital access, difficult reimbursement, and difficult payment," which is expected to directly boost sales of related companies' products in the short term.

Guojin Securities stated that it looks forward to the significant research results from major Chinese innovative pharmaceutical companies presented at key academic conferences from April to June this year. With multiple positive factors converging, the innovative medicine sector is entering a golden period for strategic allocation, driven by the overlapping cycles of performance, valuation, and events. It is recommended to focus on leading companies, Biotech companies turning profitable, and catalysts from events like ASCO, to capture the medium-to-long-term growth opportunities in innovative medicine.

The E Fund Hang Seng Stock Connect Innovative Medicine ETF (159316) is currently the only ETF product in the market tracking the Hang Seng Innovative Medicine Index, offering high elasticity and scarcity, and helping investors better seize the investment opportunities in this round of Hong Kong-listed innovative medicine stocks.