Guotai Haitong has released a research report indicating divergent performances in the pharmaceutical sectors across the Hong Kong and A-share markets, with A-shares outperforming the broader market in March 2026. In March, the Hong Kong biotechnology sector declined by 2.9%, while the Hang Seng Index fell by 6.9% over the same period. The U.S. pharmaceutical sector underperformed the market in March, with the S&P Healthcare Select Sector dropping 8.3%, compared to a 5.1% decline in the S&P 500 index. The firm continues to recommend innovative drugs, medical devices, and related industrial chains.
Key viewpoints from Guotai Haitong are as follows: The firm maintains its recommendation for innovative drugs, medical devices, and their supply chains. It has reaffirmed "Overweight" ratings on the following A-share targets: Hengrui Pharmaceuticals, InventisBio, WuXi AppTec, Asymchem Laboratories, Tigermed Consulting, Huapont Medtech, Topchoice Medical, ACROBiosystems, Salubris, and Haisco Pharmaceutical Group. These stocks have been included in Guotai Haitong's April 2026 monthly pharmaceutical portfolio. "Overweight" ratings are also maintained for the following H-share targets: Hansoh Pharmaceutical, 3SBio, CSPC Pharmaceutical Group, WuXi AppTec, BeiGene, Kelun-Biotech, Akeso, Sofront Medical, and RemeGen.
In March 2026, the A-share pharmaceutical sector outperformed the broader market. The Shanghai Composite Index fell by 6.5% during the month, while the SW Pharmaceuticals Index declined by 3.7%, ranking seventh among all primary Shenwan industry sectors. The best-performing sub-sectors within biomedicine were chemical drugs (-1.2%), pharmaceutical raw materials (-2.2%), and traditional Chinese medicine (-3.3%). The top three gainers among individual stocks were Menova Pharmaceutical (+82.8%), ST Jingfeng (+72.1%), and Andon Health (+65.8%). As of the end of March 2026, the premium valuation of the pharmaceutical sector relative to the overall A-share market remains at a normal level, with a current relative premium rate of 64.79%.
The Hong Kong pharmaceutical sector underperformed the market in March 2026. The Hang Seng Healthcare Index dropped 5.2%, and the Hong Kong biotechnology sector fell 2.9%, while the Hang Seng Index declined by 6.9% over the same period. The top three gainers among individual stocks were Antengene Corporation (+44%), Clover Biopharmaceuticals (+37%), and CStone Pharmaceuticals (+30%).
The U.S. pharmaceutical sector underperformed the market in March 2026. The S&P Healthcare Select Sector declined by 8.3%, compared to a 5.1% drop in the S&P 500 index. The top three gainers among S&P 500 healthcare constituents were Pfizer (+2%), Hologic (+0%), and Regeneron Pharmaceuticals (-1%). The largest decliners were Centene (-27%), Boston Scientific (-18%), and Baxter International (-18%).
Risk warnings include intensified medical insurance cost control risks, potential delays in policy implementation, valuation fluctuations, and market volatility risks.
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