HANSOH's ADC Licensing Deal with Roche Worth up to USD 15 Billion and a Record Share of Chinese Studies at ESMO LBA; CSOP Hang Seng Biotech ETF (03174.HK) Rises 2.09% Against the Trend on 20 October

NewTimeSpace News：Wind data show that CSOP Hang Seng Biotech ETF (03174.HK) traded at HKD 3.622 intraday on 20 October, up 2.09% as of 14:24, with the RMB counter at RMB 3.101; it opened at HKD 3.562, ranged between HKD 3.534 and HKD 3.664 and turned over about HKD 4.12 million. It closed at HKD 3.548 on 16 October; the price has pulled back from the HKD 3.996 high on 30 September and rebounded for two consecutive sessions after hitting HKD 3.524 on 15 October.

On performance, the product rose 4.79% year to date, fell 7.31% over the past six months, fell 9.33% over the past year and gained 73.69% over the past two years, while its tracking index (Hang Seng Hong Kong-Listed Biotech Index) rose 4.79% year to date, fell 7.59% over six months and fell 9.25% over one year, broadly in line with the product. Hong Kong's broader market came under pressure on 20 October, with the Hang Seng Index down 1.15% at 23,909.07, while the Hang Seng Hong Kong-Listed Biotech Index rose 1.69% against the trend for a second straight session; among constituents, HANSOH PHARMA gained 7.62%, WUXI BIO 4.56%, ASCENTAGE 3.90%, GENSCRIPT BIO 2.88% and WUXI XDC 2.82%, while INNOVENT BIO fell 0.90%.

On the news front, the positives: on 19 October HANSOH PHARMA reached an agreement with Roche on multiple ADC programmes, under which Hansoh will receive a USD 400 million upfront payment, a USD 110 million one-year payment and up to USD 15 billion in milestone payments, one of the largest total package deals for Chinese ADC out-licensing. On the same day, JITAI Pharmaceuticals struck a deal with Eli Lilly on tissue-specific LNP delivery technology, with an upfront payment of more than USD 10 million and USD 1.1 billion in milestones. The 2026 ESMO Congress runs in Madrid from 23 to 27 October, with 29 Chinese innovative drug studies selected as late-breaking abstracts, about one-third of the total and a record high, of which five will feature in Presidential Sessions. On fundamentals, leading innovative drug companies delivered strong first-half results: WUXI APPTEC's second-quarter revenue exceeded RMB 16.4 billion, with both quarterly revenue and profit hitting records and full-year guidance raised; BEONE MEDICINES' first-half net profit attributable to shareholders reached RMB 3.271 billion, up 627.1%; and INNOVENT BIO's first-half product revenue grew more than 55%. HTSC noted a triple resonance of normalised BD activity, the ESMO data season and an inflection in CXO orders, while ZHONGTAI SECURITIES said medical-sector turnaround signals are active equity funds' healthcare holdings have fallen to the lowest since 2015. On the downside: the sector has corrected through October, with the Hang Seng Hong Kong-Listed Biotech Index falling 3.13% on 14 October and 1.00% on 15 October and 5.23% over the past week; long-end US Treasury yields remain high, weighing on Hong Kong valuations, and the Hang Seng Index fell another 1.15% on 20 October; the timing of licensing revenue recognition and key clinical data remain uncertain; the index is still down 9.25% over one year and 26.68% over five years, implying significant long-cycle volatility; and 18A pre-profit biotech companies still face commercialisation and financing risks.

Managed by CSOP Asset Management Limited, established and listed in Hong Kong on 20 July 2021 with a total expense ratio of 0.99%, the product is denominated and traded in HKD and uses a physical representative sampling strategy, investing up to 100% of net asset value in representative securities highly correlated with the index (whose constituents may differ from those of the index) to closely track index performance. It tracks the Hang Seng Hong Kong-Listed Biotech Index: compiled by Hang Seng Indexes Company, the index reflects the overall performance of the 30 largest biotech companies listed in Hong Kong that are Stock Connect-eligible, including pre-profit companies listed under Chapter 18A of the HKEX Listing Rules, and covers innovative drugs, biotechnology and CXO segments, with the top ten accounting for 72.32% — a high concentration. The product suits investors bullish on the globalisation of Chinese innovative drugs and BD out-licensing who can tolerate the high volatility of the biotech sector. Risk warning: for reference only; this is not investment advice; past performance does not guarantee future results; invest with caution. (Data source: ROYALFLUSH INFO iFinD, as of 20 October 2026)