Mainland Chinese institutional fund managers have recently increased their stakes in Hong Kong-listed biotechnology stocks, driven by attractive valuations and a surge in cross-border licensing deals in the sector.

China’s largest mutual fund manager, E Fund Management, acquired an additional 91,500 shares in Beijing-based gene-editing firm Biocytogen Pharmaceuticals on July 2, 2026, raising its stake to 7 percent at an average price of HK$46.90 per share, according to the Hong Kong stock exchange website. Similarly, Fullgoal Fund Management increased its stake in Biocytogen from 6.7 percent to 7 percent by purchasing shares at an average price of HK$48.2 on July 7, 2026.

Biocytogen’s stock price has surged approximately 44 percent over the past month. The Hang Seng Innovative Drug Index, which tracks innovative pharmaceutical and biotechnology companies such as Innovent Biologics and Akeso, has risen about 12.62 percent during the same period.

Linda Shu, head of China healthcare research at HSBC, noted in a July 10, 2026, report that Hong Kong-listed pharmaceutical stocks are trading at valuations considered relatively cheap by historical standards. She added that multiple catalysts, including a growing number of out-licensing deals, are expected to drive the sector in the second half of the year.

The mainland-Hong Kong Stock Connect program facilitates these investments by allowing onshore investors to trade shares listed on the Hong Kong bourse and offshore investors to access mainland exchanges.

Sources