Net purchase of innovative drug ETF (159992) by Korean investors in the past month

LightningPacketLoss · 2026-03-11T15:40:31+00:00

Korean investors have recently increased their investments in Chinese innovative drug ETFs, with a net purchase of $1,480,900, reflecting international market confidence in the prospects of China's innovative drug industry. After adjustments, the innovative drug sector's cost performance has improved, and institutions are optimistic about related investment opportunities.

LightningPacketLoss

2026-03-11 15:40:31

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According to SEIBro, a subsidiary of the Korea Securities Depository & Settlement Agency, as of March 9, Korean investors have net purchased $14.809 million worth of innovative drug ETFs (code: 159992) over the past month, making it one of their key A-share (or ETF) holdings. This trend reflects international investors’ long-term confidence in China’s innovative drug industry. (Data source: SEIBro, as of March 9, 2026; China Fund News, “The Weapon Arrives: Korean Investors Can Now Buy Chinese AI Semiconductors with One Click,” March 10, 2026)

Wind data shows that as of March 9, 2026, the Price-to-Earnings ratios (TTM) for the Hong Kong Stock Connect Innovative Drug Index (987018.CNI) and the CSI Innovative Drug Index (931152.CSI) are 33.81 and 42.94, respectively. Their historical percentile over the past ten years is only 21.87% and 50.06%, indicating a relatively high safety margin in allocation. Since September last year, the A-share and Hong Kong pharmaceutical sectors have entered a phase of adjustment, with significant pullbacks from their 2025 highs. After ongoing valuation digestion, the current focus is on cost-effectiveness. This valuation-driven rebound has attracted international investors to deploy at low levels through ETF instruments.

Some institutions believe that the turnaround point for innovative drug companies is approaching, with intensive clinical data catalysts expected throughout the year. Coupled with smooth progress in overseas clinical trials for their BD pipelines, they remain optimistic about investment opportunities in the innovative drug sector. For investors who are long-term bullish on China’s innovative drug prospects, the innovative drug ETF (code: 159992) and its associated funds (Class A: 012781; Class C: 012782) are worth paying attention to.

(Wind data, China Fund News, data source: SEIBro)

(Edited by: Xu Nannan)

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