On the afternoon of October 9, A-shares staged a strong rally, and the pharmaceutical sector reversed course along with the broader market, with the Pharma ETF Huabao (562050) and the Medical ETF Huabao (512170) both turning positive.
A large number of individual stocks flipped into the green, with Meinian Onehealth Healthcare Holdings Co.,Ltd. (ASX: 002044) surging over 6% to lead the medical sector, while Intco Medical, Winning Health and several other stocks gained more than 4%.
The pharmaceutical sub-sector showed even stronger rebound momentum, with more than 40 stocks advancing. Sinocelltech rose over 5%, and Zhejiang Huahai Pharmaceutical Co.,Ltd. (ASX: 600521) climbed more than 4%, marking its fifth consecutive day of gains.
On the evening of October 7, Zhejiang Huahai Pharmaceutical Co.,Ltd. (ASX: 600521) released the first third-quarter earnings forecast among A-share pharmaceutical companies: for the first three quarters, the company's net profit attributable to shareholders is expected to range between 1.028 billion yuan and 1.103 billion yuan, representing a year-on-year increase of approximately 170% to 190%.
From an industry perspective, policy and industrial catalysts have jointly supported the pharmaceutical market since September. On September 18, the "15th Five-Year Plan for Pharmaceutical Industry Development" was released, proposing multiple quantitative targets, including: by 2030, the innovative drug industry should achieve an average annual growth rate of over 20%, with first-in-class (FIC) drugs accounting for more than 25% of the global total; and the cumulative number of innovative medical devices approved for market should exceed 200.
On the industrial front, following the World Conference on Lung Cancer (WCLC), the latest breakthrough abstracts from the European Society for Medical Oncology (ESMO) congress further reinforced internationalization expectations for domestic ADC and bispecific antibody drugs. Meanwhile, outbound business development (BD) momentum for Chinese innovative drugs remains strong, and major AIDD (AI-assisted drug discovery) events are landing密集ly.
Zhang Fang, fund manager of the Pharma ETF Huabao (562050) and the Medical ETF Huabao (512170), previously noted that the main investment theme in pharmaceuticals may be shifting from the earlier "undervaluation repair" phase toward an "innovation realization" driven phase, while the AIDD industrial chain offers new structural opportunities. Taken together, the medium-term allocation value of pharmaceuticals remains intact, current valuation percentiles are not high, policies support innovation, and some sub-sectors continue to show strong fundamentals, warranting continued attention going forward.
Related investment tools to watch: Pharma ETF Huabao (562050): the only ETF in the entire market tracking a pharmaceutical index, with an exclusive allocation of "70% innovative drugs + 20% traditional Chinese medicine," combining the high growth of innovative drugs with the high dividends of traditional Chinese medicine. Off-exchange feeder fund: 024986. Medical ETF Huabao (512170): a flagship pharmaceutical and medical ETF, with a scale of 25.624 billion yuan as of its second-quarter report. It focuses on medical devices plus medical services (with over 30% exposure to CXO) and also covers AI healthcare. Off-exchange feeder fund: 012323.
[Data Source] Public information from the Shanghai-Hong Kong-Shenzhen exchanges, China Securities Index Company, Hang Seng Index Company, etc. Weight data as of September 30, 2026.
[Fund Fee Rates] ETFs do not charge sales service fees. When investors subscribe or redeem fund shares, the subscription and redemption agency broker may charge a commission of no more than 0.5%, which includes fees charged by the stock exchange, registration institution, etc. For fund fee rates, please refer to the legal documents of each fund.
[Special Notice] The risk level of the Medical ETF Huabao and its feeder fund as assessed by the fund manager is R4-medium-high risk, suitable for investors with an aggressive profile (C4) or above. The risk level of the Pharma ETF Huabao and its feeder fund, as well as the Medical ETF Huabao, is R3-medium risk, suitable for investors with a balanced profile (C3) or above.
[Risk Warning] The index constituent stocks mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. The constituent stocks of the underlying index are adjusted in due course according to the index compilation rules. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for their own investment decisions. In addition, any views, analyses, and forecasts in this article do not constitute investment advice of any kind to readers, nor shall they bear any responsibility for direct or indirect losses arising from the use of the content herein. Fund investment involves risks. Past performance of a fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Investment in funds should be made with caution. MACD golden cross signals have formed, and these stocks are performing well!
Comments