Kelun Biotech announced a surprise turnaround in its latest interim report, posting a net profit of 388 million yuan after a loss‑making first half. The news helped lift the Fullgoal HK Stock Connect Innovative Drug ETF (code 159570), which is fully invested in China’s fast‑growing biotech sector. The ETF’s assets under management surged past 25.1 billion yuan, and trading volume briefly topped the 1 billion‑yuan mark, signaling strong investor interest. Within the ETF’s basket, peers such as BeiGene, Hengrui Medicine and CSPC Pharmaceutical also posted gains, while a few names like RemeGen and Akeso slipped. Meanwhile, China’s health authorities released a new list of 158 common diseases eligible for standardized insurance payments, covering conditions from pneumonia to coronary heart disease. On the drug‑development front, Baili Tianheng’s bispecific ADC izalibrentinib met its primary endpoint in a Phase III trial for EGFR‑mutated non‑small cell lung cancer, hinting at a potential new blockbuster. Other Chinese innovators are pushing advanced therapies—bispecifics, ADCs, KRAS and BTK inhibitors—into late‑stage global trials and striking licensing deals with majors such as AbbVie and AstraZeneca. Analysts see two investment themes emerging: companies with proven commercial traction and those that have recently shifted from loss to profit while securing valuable cross‑border partnerships. As always, investors are reminded that biotech ETFs carry high risk and should fit a moderate‑to‑aggressive risk profile.
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