HKEX Insight

Hong Kong-listed biotech companies span areas including immuno‑oncology, AI‑enabled drug discovery, next‑generation vaccines and surgical robotics.

As of end-February 2026, more than 260 biotech and healthcare companies are listed on HKEX, with a combined market capitalisation of over HK$5 trillion, according to HKEX data.

Biotech ETFs offer broad coverage of the major biotech constituents listed in Hong Kong, plus a way to gain diversified exposure to companies influenced by policy developments and demographic trends. For asset allocators, ETFs can also be used as reference tools or benchmarks for active strategies.

Total assets under management (AUM) for Hong Kong-listed biotech ETFs stood at HK$1.5 billion in March 2021 and HK$13.8 billion at the end of January 2026, according to HKEX figures, reflecting changes in product availability and market conditions over the period.

The number of biotech‑linked derivative warrants grew from 132 in January 2025 to around 500 at the end of January 2026, with average daily turnover reaching HK$252 million as of the same time period. This market provides instruments that can be used to express views or manage exposure to selected biotech names or the HSBIO index, using pre-defined payoff structures.

HSBIO has historically exhibited higher volatility than broader indices such as HSI and HSCEI. Launched in November 2025, Hang Seng Biotech Index Futures adds a listed derivatives component to HKEX’s biotech‑related product offering.

The futures contract allows hedging of biotech equity or ETF exposure without resorting to less‑correlated proxies and implementation of overlay strategies to support exposure management in response to market conditions.

As at end-January 2026, average daily volume reached 428 contracts, with a record single‑day volume of 1,013 contracts on 28 January, amid participation by institutional investors and active traders in Hong Kong and the Chinese Mainland.

Beyond risk management, the introduction of futures adds another component to HKEX’s biotech product ecosystem. Together with cash equities, ETFs and structured products, Hang Seng Biotech Index Futures contributes to price discovery across the sector.

Futures activity also reinforces trading in the underlying market and enables cross‑product strategies from arbitrage to relative‑value and portfolio hedging.