On Wednesday morning (September 24), AH pharmaceutical sectors showed divergent performance.
A-share pharmaceutical sector recovered, with innovative drugs and traditional Chinese medicine rising together. Domestic insulin leader Gan & Lee Pharmaceuticals surged to the daily limit, Sinlion Pharmaceutical jumped over 7%, Darrentang increased more than 3%, and the only on-market Drug ETF (562050) climbed over 1%.
On the news front, Gan & Lee Pharmaceuticals disclosed a major collaboration today, signing a supply agreement worth no less than 3 billion yuan with a Brazilian company, setting a new record for the company's largest single overseas cooperation scale. According to the announcement, the core of this collaboration involves transferring insulin glargine production technology to the partner while simultaneously providing long-term supply of active pharmaceutical ingredients and injection solutions.
A-share medical sector stabilized synchronously, with the largest Medical ETF (512170) briefly exploring 1% gains at the opening. Among constituent stocks, CXO concept stock Tigermed rebounded over 4%, and medical consumables stock Peijia Medical rose more than 3%. Notably, during yesterday's deep sector adjustment, 512170 received over 85 million yuan in capital inflows in a single day.
In Hong Kong stocks, innovative drugs showed mixed performance. Leading stocks BeiGene and Innovent Biologics turned positive with gains exceeding 1%, while Immunotech-B continued to fall over 5%, and Viva Biotech and Canwell Pharma-B declined more than 1%. The Hong Kong Stock Connect Innovative Drug ETF (520880), which allocates 100% to innovative drug R&D companies, rallied to turn positive during trading, maintaining premium trading on-market.
Hong Kong Stock Connect Innovative Drug ETF (520880) fund manager Feng Chengcheng interpreted that short-term CXO sector sentiment is rising, and innovative drugs' flexibility has further improved under emotional adjustments. We continue to focus bullishly on innovative drugs plus the innovative drug industry chain. Short-term adjustments in core innovative drug assets do not change their intrinsic value and excellent medium-to-long-term growth prospects. If a turning point in pharmaceutical investment and financing emerges in Q4 this year, it may usher in China-US industry resonance. Currently, feedback from upstream pharmaceutical industry investment and financing shows relatively sufficient confidence in the sector.
Strategically, Feng Chengcheng noted that in terms of market cap dimensions, mid-term market rotation may gradually shift toward large-cap white horse companies. Small-cap companies that cannot deliver performance or business development may lose capital attention. Attention should also be paid to internal sector balance - for lagging segments like medical devices and medical services, balanced allocation with innovative drugs can be considered.
Reminder: Recent market volatility may be significant, and short-term gains and losses do not indicate future performance. Investors must invest rationally based on their financial situation and risk tolerance, paying high attention to position and risk management.
Note: According to Shanghai and Shenzhen exchange data, as of September 22, 2025, Medical ETF has a scale of 26.5 billion yuan, the largest among all pharmaceutical ETFs in the market (1/50). Drug ETF is the first and currently the only ETF tracking the CSI Pharmaceutical Index in the market.
Risk Warning: Hong Kong Stock Connect Innovative Drug ETF passively tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index. The index base date is December 31, 2020, with publication date of July 17, 2023. Since the publication of the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, complete annual returns have been: 2021: -22.72%; 2022: -16.48%; 2023: -19.76%; 2024: -14.16%. Index constituent composition is adjusted timely according to index compilation rules, and backtested historical performance does not predict future index performance. Index constituent stocks mentioned are for display purposes only. Individual stock descriptions do not constitute investment advice in any form, nor represent holding information or trading directions of any fund under management. The fund manager assesses Hong Kong Stock Connect Innovative Drug ETF and Medical ETF feeder funds as R4-medium-high risk, suitable for aggressive (C4) and above investors. Medical ETF and Drug ETF are assessed as R3-medium risk, suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any autonomous investment decisions. Furthermore, any views, analyses, and predictions in this article do not constitute investment advice to readers in any form, nor bear any responsibility for direct or indirect losses caused by using the content of this article. Performance of other funds managed by the fund manager does not guarantee fund performance. Past fund performance does not represent future performance. Fund investment involves risks and should be approached with caution.
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