Since the start of 2025, innovative drug stocks—particularly Hong Kong-listed biotech firms—have led a market rally, propelling specialized funds to outsized gains. Huitianfu Hong Kong Advantage Selection A tops the chart with a 78.8% return, followed by Great Wall Pharmaceutical Industry Selection A, Yongying Pharmaceutical Innovation Smart Selection A, and Huaan Pharmaceutical Biologics A, all up over 60%. The sector has emerged as this year’s decisive performance differentiator for fund managers.
Fund managers cite three key drivers: (1) Global R&D Breakthroughs – Chinese firms now contribute 22% of global early-stage oncology trials (vs. 9% in 2020); (2) Policy Tailwinds – Fast-track approvals and NRDL reimbursement expansions; (3) Pipeline Monetization – Licensing deals with Big Pharma hit $12B in 2024, doubling YoY.
With 37% of the world’s PD-1/L1 trials and novel platforms like ADC and bispecific antibodies gaining traction, China now accounts for 18% of global biopharma innovation value—a figure projected to reach 25% by 2030. The next battleground lies in CNS and rare diseases, where local firms are leveraging AI-driven drug discovery.
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