Hang Seng Biotech Index gains 17.4% in 9M, outperforms broader market

However, biotech stocks recorded higher volatility of 39.9%.

The Hang Seng Biotech Index (HSBIO) gained 17.4% in the first nine months as the broader Hang Seng Composite Index declined 7.1%. 

Hang Seng Indexes Company said this represented an outperformance of 24.5 percentage points, although biotech stocks recorded higher volatility of 39.9%, compared with 23.9% for the broader market.

The biotech index tracks 30 of the largest Hong Kong-listed biotechnology companies eligible for trading through the Stock Connect scheme.

Pharmaceutical companies accounted for the largest share of the index at 36.4%, followed by pharmaceutical and biotechnology contract services at 31.2%, and biotechnology firms at 26.4%.

“The sentiment towards pharmaceutical companies is often driven by news related to drug development,” Hang Seng Indexes added.

The 10 largest constituents represented 72.3% of the index's total weighting, led by WuXi Biologics at 10.7%, BeOne Medicines at 10%, and Innovent Biologics at 9.2%.

The report also cited growing trading activity in biotech index futures, which Hong Kong Exchanges and Clearing launched in November 2025.

Average daily contract volume was around 200 in December 2025 but has since frequently reached 300 to 400 contracts.

However, trading activity remained relatively limited compared with established Hong Kong index futures.

The ratio of futures trading value to average market capitalisation stood at 0.04 for HSBIO in the first nine months of 2026, well below the 2025 ratios of 2.5 for Hang Seng Index futures and 1.2 for both the Hang Seng China Enterprises and Hang Seng TECH indexes.