On April 9th, the innovative drug sector showed an upward trend against the market correction, with the Innovative Drug ETF (517110) and the Hang Seng Biotechnology ETF (520930) rising over 1% during the session, and the Sci-Tech Innovation Drug ETF (589720) increasing nearly 1%.
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Under the dual influence of improved macro liquidity expectations and endogenous growth momentum within the industry, the sector is entering a new round of valuation recovery. The upcoming period from late April to June will see two major academic conferences, AACR (American Association for Cancer Research) and ASCO (American Society of Clinical Oncology), which are expected to inject strong &#34;data catalysts&#34; into the market.
[Short-term Catalyst: Global Academic Stage Focused on Chinese Innovation]
In addition to the impressive BD (out-licensing) data and the turnaround of leading companies in the first quarter, the most direct catalyst is the imminent intensive data disclosure period.
Hundreds of companies to showcase, record number of results: The 2026 AACR Annual Meeting will be held from April 17th to 22nd in San Diego, USA. According to statistics, more than 100 Chinese pharmaceutical companies will present nearly 400 research results this year, covering all current hot technology areas including ADC (antibody-drug conjugates), bispecific antibodies, and small nucleic acids.
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Significant data to look forward to: From the disclosed abstract titles, several leading companies such as HengRui Medicine, Kelun-Biotech, Innovent Biologics, and CanSino Biologics will reveal multiple key clinical data on major indications like NSCLC (non-small cell lung cancer) and breast cancer. The market generally expects that excellent clinical results are likely to directly translate into valuation increases for the relevant companies.
From &#34;monoclonal antibodies&#34; to &#34;multispecific antibodies&#34; iteration: Following PD-1, Chinese companies have taken a global leading position in next-generation IO (immuno-oncology) therapies such as PD-1/VEGF bispecific antibodies and trispecific antibodies. At this conference, several companies will announce the latest data on their bispecific/trispecific combinations, further validating the &#34;Immuno-Oncology 2.0 Era&#34; of Chinese strength.
[Industry Trend: BD Boom Continues, Innovation Ecosystem Circulating]
If academic conferences are the &#34;face,&#34; then the continuous improvement of the industrial fundamentals is the &#34;substance.&#34; Since the beginning of 2026, the momentum of Chinese innovative drugs going global has not diminished, providing solid fundamental support for the sector.
BD upfront payments become a new engine for R&amp;D: Data shows that in the first three months of this year, the total value of out-licensing transactions for Chinese innovative drugs has exceeded USD 60 billion, approaching half of the total for the entire year of 2025. BD upfront payments, as &#34;visible and tangible&#34; cash flow, have become the main source of R&amp;D funding for many biotech companies, effectively alleviating financing pressure
Primary investment and financing bottoming out and rebounding: With the reshaping of valuations in the secondary market for innovative drugs, the exit channels in the primary market are gradually opening up. In February 2026, the investment and financing amount in China's biopharmaceutical sector increased by over 280% year-on-year, and a positive interaction between the primary and secondary markets is forming, signaling the start of a cyclical recovery in the industry.
Turning losses into profits, cash flow continuously optimizing: From the disclosed annual reports, several leading companies have achieved full-year profitability for the first time, and many biotech companies have exceeded expectations in the commercialization of their core products. Companies are transitioning from &#34;burning cash&#34; in research and development to a positive development stage of &#34;self-sustaining&#34; growth.
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Source: Guotou Securities Research Institute
[Macroeconomic Environment: Expectations of a liquidity turning point, enhancing the value of core asset allocation]
In addition to the logic of the industry itself, macro liquidity is also a key variable affecting the performance of the innovative drug sector.
The &#34;seesaw&#34; effect of U.S. Treasury yields and innovative drugs: Reviewing history, U.S. Treasury yields have shown a significant negative correlation with the performance of the innovative drug sector. As typical long-duration assets, the valuations of innovative drug companies are extremely sensitive to discount rates. If U.S. Treasury yields enter a downward channel, it will significantly enhance the attractiveness of core assets represented by innovative drugs.
Risk fully priced, capital switching: After previous adjustments, the market has adequately priced in macro risks such as geopolitical conflicts. Currently, the valuations of the innovative drug sector in the STAR Market and Hong Kong stock market remain at historically low levels, with a clean chip structure. Against the backdrop of differentiated expectations in hot sectors, the innovative drug sector, which has performance certainty and valuation cost-effectiveness, is expected to become a key allocation direction for capital rebalancing.
[Investment Guide: Focus on the STAR Innovative Drug ETF (589720), seizing high-elasticity growth opportunities]
Under the current triple resonance of &#34;event catalysts + industry prosperity + macro improvement,&#34; using index tools to layout the sector is an effective strategy to diversify individual stock risks and capture beta trends.
STAR Innovative Drug ETF (589720) tracks the Shanghai Stock Exchange STAR Market Innovative Drug Index, and its constituent stocks gather 30 high-growth biotech companies from the STAR Market. These companies typically have stronger R&amp;D attributes and valuation elasticity, and their 20% price fluctuation limit also endows the ETF with stronger price discovery capabilities.
Focusing on cutting-edge technologies, comprehensive coverage: This ETF deeply covers cutting-edge tracks such as ADC, bispecific antibodies, and small nucleic acids. Compared to Hong Kong stocks or the main board, innovative drug companies in the STAR Market possess more &#34;hard technology&#34; attributes, and during the upcoming AACR/ASCO data catalyst period, their stock prices may react more sensitively to positive information.
For investors, rather than gambling among numerous individual stocks, it is better to leverage the STAR Innovative Drug ETF (589720) to easily layout the core assets of China's innovative drug industry and share in the era's dividends as the industry transitions from &#34;catching up&#34; to &#34;leading.&#34;
Daily Economic News

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AACR and ASCO, two top academic conferences, are about to be held. The innovative drug sector is rising against the market correction, with the innovative drug ETF up over 1%. Improvement in macro liquidity and endogenous growth momentum within the industry are driving the valuation recovery of the sector. It is expected that more than 100 Chinese pharmaceutical companies will disclose nearly 400 research results at the AACR annual meeting, covering several popular technology areas. The market generally expects that excellent clinical results will enhance the valuations of related companies

With the AACR+ASCO dual conference approaching, the innovative drug sector has surged against the market trend