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

According to SEIBro, a subsidiary of the Korea Securities Depository & Settlement Agency, as of March 9, Korean investors have net purchased $1.4809 million worth of innovative drug ETFs (code: 159992) over the past month, making it one of their key holdings related to A-shares (or ETFs). Behind this trend is international investors’ recognition of the long-term potential of China’s innovative drug industry. (Data source: SEIBro, as of March 9, 2026; China Fund News “The Weapon is Here: Korean Investors One-Click to Buy Chinese AI Semiconductors,” March 10, 2026)

Wind data shows that as of March 9, 2026, the Price-to-Earnings ratios (TTM) of 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-shares and Hong Kong pharmaceutical sectors have entered a phase of adjustment, with significant pullbacks from their 2025 highs. After continuous valuation digestion, current valuation attractiveness is prominent. This higher cost-performance ratio driven by valuation correction 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 of overseas clinical trials for their BD pipelines, they are 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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