From October 20-22, along the banks of Shanghai's Huangpu River, the 2026 Sustainable Global Leaders Conference returns once again. Nobel Prize and Turing Award winners will take the stage to discuss the future and trends of technology, and the internet-famous professor who "rescues" people from anxiety and the era of involution—Macfarlane and Xiang Biao—will engage in a live dialogue!
Limited seats available, first come first served. Let us embark together on this journey toward sustainability! [Click to Register] On October 16, A-shares surged then pulled back, with dividend assets making another move in late trading as the Shanghai Composite Index edged up 0.24% to close at 3,716.28 points. Tech stocks failed to recover, with the Shenzhen Component Index and ChiNext Index both posting a fifth consecutive decline. Total market turnover reached 1.57 trillion yuan, a slight contraction on a sequential basis. The military industry sector staged a strong rebound, leading gains across the entire market! The underlying index of Military ETF Huabao (512810) touched an intraday high of 4.35%. General aviation surged even more sharply, with Chenxi Aviation, Huali Chuangtong, and Inbol 20CM limit-up, while the underlying index of General Aviation ETF Huabao (159231) briefly surged over 6% intraday before closing up 4.96%. On the news front, favorable low-altitude economy policies have been frequently introduced recently, and Tesla's "flying" car went viral during the session, driving a rapid surge in related concept attention. The real estate sector emerged as a dark horse, with leading developers showing prominent elasticity—Seazen Holdings rose over 8%, China Merchants Shekou rose over 5%, and the underlying index of Real Estate ETF Huabao (159707) probed nearly 7% intraday before closing up 3.79% on elevated volume, with capital flows returning notably. Huabao Fund's Index R&D and Investment Department believes this is not merely a sentiment rebound but rather the result of overlapping changes in three areas: policy, sales, and industry landscape. Simply put: policies are intensifying, sales are bottoming out, and capital is concentrating toward industry leaders. Pharmaceutical assets showed unusual movement, with the full A+H innovative drug chain advancing in the morning session. The underlying indices of Hong Kong Stock Connect Innovative Drug ETF Huabao (520880) and Hong Kong Stock Connect Healthcare ETF Huabao (159137) respectively probed 4.7% and 3.9% higher, before WuXi AppTec's sudden plunge in the afternoon weighed on sector sentiment, rapidly narrowing gains. This week, the Shanghai Composite Index, ChiNext Index, STAR Composite Index, and STAR 50 fell 2.56%, 8.9%, 8.26%, and 6.77% respectively, all declining for four consecutive weeks. However, trading volume showed a recovery trend, with single-week turnover of 7.88 trillion yuan, the highest in nearly four weeks. Looking ahead, multiple institutions believe that this round of A-share adjustment is more of a phased pullback under valuation digestion combined with liquidity constraints, rather than a trend reversal. As trading volume gradually returns, the probability of the market shifting toward range-bound recovery may rise.
ETF Full Knowledge Hot Spot Review Below we focus on the trading and fundamental conditions of several thematic sectors including general aviation, real estate, and Hong Kong pharmaceutical stocks.
1. Musk's "Flying Car" Goes Viral! General Aviation Triggers Wave of Limit-Ups, General Aviation ETF Huabao (159231) Underlying Index Surges Nearly 5% from Stage Bottom
The general aviation sector led gains strongly, with constituent stocks rallying collectively. Chenxi Aviation, Huali Chuangtong, Inbol, Wanfeng Auto (shareholder rights), CITIC Offshore Helicopter, and many others hit the limit-up. The underlying index of General Aviation ETF Huabao (159231), which provides one-click exposure to commercial aerospace + satellite navigation + low-altitude economy + large aircraft, briefly surged over 6% intraday before closing up 4.96%.
Figure 1: Top 10 Single-Day Gainers Among Constituent Stocks of General Aviation ETF Huabao (159231) Underlying Index
Figure 2: Six-Month Trend of General Aviation ETF Huabao (159231) Underlying Index
Today's sector rally may be driven by the resonance of the following multiple catalysts: (1) Policy and top-level planning tailwinds. ① Hong Kong's major low-altitude economy plan: The Hong Kong Working Group on Developing Low-Altitude Economy is fully committed to formulating the "Action Plan for Developing Low-Altitude Economy," covering regulatory frameworks, standard setting, and infrastructure, with drafting expected to be completed within the year. ② Breakthrough in international standards for low-altitude economy: The "Drone Perception and Obstacle Avoidance System" jointly led by China fills a gap in international standards in this field. ③ Continuation of central top-level positioning: The October 9 "Opinions on Developing New Quality Productive Forces" explicitly stated "promoting the healthy and orderly development of low-altitude economy and commercial aerospace under the premise of ensuring safety." (2) Industry progress and commercial catalysts. ① Successful launch of the second batch of Qianfan Constellation networking satellites: On October 15, the Long March 6A rocket successfully placed the second batch of Qianfan Constellation networking satellites into their designated orbits using a one-rocket-eighteen-satellite approach, bringing the total number of satellites in orbit to 36. ② Successful launch of Zhuque-2 with "one rocket, ten satellites": On October 14, Blue Arrow Aerospace's improved Zhuque-2 Y4 rocket placed 10 satellites including Guoxing Aerospace's Star Era satellites into their designated orbits. ③ Musk's "flying car" topic heats up: Tesla's next-generation Roadster was unveiled on the morning of October 16 at SpaceX's test base, as the first mass-production passenger vehicle capable of autonomous takeoff and attitude control, driving increased attention to the flying car and innovative mobility concepts. (3) Zhuhai Airshow event catalyst. The 16th China International Aviation and Aerospace Exhibition is approaching, where the Air Force will highlight iterative upgrade achievements of main combat equipment, with multiple types of main combat equipment making their debut and an increased proportion of new-quality combat forces participating. The Air Force booth will feature a "Digital Intelligence" section for the first time. Great Wall Securities noted that the industry's commercialization process is continuously accelerating, with related satellite communication application scenarios gradually being implemented. Against the backdrop of increasing commercial aerospace satellite launch frequency and maturing rocket reuse technology, the commercial aerospace rocket and satellite-related industry chain and component suppliers are viewed favorably. Longhua Securities noted that recently, progress in satellite internet and commercial aerospace has been密集, and the global space race is expected to accelerate, potentially driving increased demand across related industry chains. Wings of a Great Power, Grand Prospects Unfold! General Aviation ETF Huabao (159231) and its feeder funds (Class A: 024766; Class C: 024767) underlying index comprehensively covers 50 aerospace constituent stocks, spanning hot sectors including low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. Among these, low-altitude economy concept exposure exceeds 90%, commercial aerospace exposure exceeds 60%, and satellite navigation concept exceeds 45%, making it a powerful one-click tool for gaining exposure to China's aerospace industry chain.
2. Explosive Move! Real Estate ETF Huabao (159707) Underlying Index Closes Up 3.79%! Policies Land Intensively, Huabao Fund: Leading Central and State-Owned Enterprises May Become Core Beneficiaries
The real estate sector was active against the broader market trend, with leading developers showing prominent elasticity. Seazen Holdings rose over 8%, China Merchants Shekou rose over 5%, and Binjiang Group and Poly Developments rose over 4%. Among popular ETFs, Real Estate ETF Huabao (159707) suddenly saw elevated on-exchange volume, with its underlying index probing nearly 7% intraday before rebounding to close up 3.79%, showing notable capital return. Why the sudden activity? Huabao Fund's Index R&D and Investment Department believes this is not merely a sentiment rebound but rather the result of overlapping changes in three areas: policy, sales, and industry landscape. Simply put: policies are intensifying, sales are bottoming out, and capital is concentrating toward industry leaders. 1. Policy: Central government fiscal interest subsidies directly for the first time, sending a strong signal. Since late September, real estate policies have landed intensively. At the central government level, the State Council executive meeting explicitly committed to stabilizing the housing market; the Ministry of Finance, the central bank, and other agencies jointly issued documents, with the central government providing direct subsidies for mortgage interest for the first time—shifting the demand side from "rate cuts" to "direct fiscal subsidies." On the same day, the central bank lowered the PSL rate by 0.25 percentage points. At the local level, Beijing, Shanghai, Guangzhou, Wuhan, and Tianjin issued detailed rules for housing sales system reform, making the transition more flexible and mitigating short-term shocks; over 40 cities optimized provident fund policies, shifting from "loan-side loosening" to "usage-side support." Overall, the system favors central and state-owned enterprises and whitelist developers, further strengthening the concentration toward industry leaders. 2. Sales: Golden September stabilized, National Day warmed up, but still bottoming out. September new home transactions stabilized on a month-over-month basis but remained weak year-over-year. New home transactions in 50 cities totaled approximately 10.2 million square meters, up 2.4% month-over-month but down 20.1% year-over-year; second-hand home transactions in 20 cities totaled approximately 14.11 million square meters, up 3.1% year-over-year, with a cumulative gain of 6.5% for the first nine months. The resilience of second-hand homes is notably stronger than that of new homes. During the National Day and Mid-Autumn Festival holiday, driven by interest subsidies and increased supply, transaction volumes improved year-over-year: average daily new home transactions in 25 cities rose 33.8% year-over-year, while average daily second-hand home transaction units in 11 cities rose 42.8% year-over-year. On prices, new home prices in 100 cities rose slightly month-over-month, while second-hand home prices continued to fall, though Shanghai's second-hand home prices turned from decline to gain. Sales rankings also show that among the top ten developers, there are 5 central SOEs, 2 local SOEs, 3 mixed-ownership enterprises, and 0 private enterprises, further strengthening the concentration toward industry leaders. 3. Investment and model: Land acquisition contracting, development shifting toward "manufacturing-like" model. Under presale and closed fund supervision, developer capital recovery has slowed and capital occupation has increased, making land acquisition more cautious. In September, land acquisition amounts by top 100 developers fell 43% year-over-year, with land acquisition intensity at 45%, down 23 percentage points year-over-year. Only some leading central and state-owned enterprises are still actively acquiring land. This means the industry is shifting from "high leverage, high turnover" to competing on products, quality, and earning premiums—increasingly resembling manufacturing. Central and state-owned enterprises, leveraging advantages in capital, operations, and credit, are expected to continue gaining share. Overall, in the short term, the real estate sector is in a game period between policy intensification and sales bottoming. The recent consecutive activity reflects the resonance of policy expectations, National Day sales warming, and the leader-concentration logic. In the medium to long term, supply-side "controlling increments and destocking" and demand-side fiscal interest subsidies are forming a synergy, and the supply-demand relationship is expected to improve. After the price bottom is established in core cities, a moderate recovery may follow, with industry resources continuing to concentrate toward the top, and leading central and state-owned enterprises remaining the core beneficiaries. To gain exposure to central and state-owned enterprises and quality developers, it is recommended to focus on Real Estate ETF Huabao (159707). According to available information, Real Estate ETF Huabao (159707) tracks the CSI 800 Real Estate Index, gathering top-quality developers from the market with high central and state-owned enterprise exposure! Against the backdrop of industry consolidation, leading developers may offer greater elasticity!
3. Hong Kong Stock Connect Innovative Drugs Stabilize and Turn Upward, 520880 Underlying Index Probes 4.7%! WuXi AppTec's Sudden Late-Session Plunge—What Happened?
Hong Kong pharmaceutical stocks finally stopped falling! In the morning session, the full innovative drug chain counterattacked, with the underlying indices of Hong Kong Stock Connect Innovative Drug ETF Huabao (520880) and Hong Kong Stock Connect Healthcare ETF Huabao (159137) respectively probing 4.7% and 3.9% higher. In the afternoon, affected by the sudden plunge of WuXi AppTec-related stocks, gains narrowed, but both still closed up 1.94% and 0.19% respectively.
Figure: Six-Month Trend of Hong Kong Stock Connect Innovative Drug ETF Huabao (520880)
In terms of individual stock performance, on the innovative drug side, Inhibrx Biosciences-B was strong throughout the day, leading with a 10.89% gain. Heavyweight BeiGene closed up 4.36%, Kelun-Biotech and Insilico Medicine rose over 3%, and Keymed Biosciences-B rose 7.62%. The 2026 European Society for Medical Oncology (ESMO) Annual Meeting will be held from October 23-27, with conference catalyst expectations heating up. On the CXO side, WuXi AppTec's A-shares plunged sharply in late trading, hitting the limit-down before closing down 6.66% on heavy volume. Its H-shares dropped nearly 8% before recovering, ultimately closing down 2.19%. Hong Kong-listed WuXi Biologics and WuXi XDC followed with surge-then-pullback and bottoming-then-recovery patterns. What happened? In the afternoon, reports emerged that "the Biotechnology Innovation Organization (BIO) suddenly shifted its stance, publicly supporting the BIOSECURE Act and removing WuXi AppTec's membership," rapidly triggering panic-driven stock plunges. Subsequent verification from multiple sources indicated that this news was most likely a re-publication of old news from March 2024, and Hong Kong-listed WuXi-related stocks staged a V-shaped recovery in late trading. Why is capital so sensitive? Since early September, accompanied by multiple positive factors including the lifting of BD restrictions, AI pharmaceutical catalysts, and a recovery in global innovative drug investment and financing, CXO has undergone a round of recovery. The sector as a whole has accumulated relatively substantial profit-taking positions. With recent declines in market risk appetite, concentrated profit-taking can easily trigger sentiment-driven sell-offs. From a broader sector perspective, Hong Kong pharmaceutical stocks took the lead in initiating recovery today, and sustainability is worth anticipating. Overnight, U.S. biopharmaceutical giants AbbVie and Eli Lilly saw their stock prices once again approach historic highs. Foreign media noted that the high volatility of AI may be prompting capital to re-examine the allocation value of large pharmaceutical stocks. The core appeal of such companies lies in stable, predictable earnings growth—continuous investment in R&D pipelines and extending the patent life cycle of core drugs provide a risk-return profile entirely different from tech stocks. As AI recedes, will pharma take the baton? To capture high-elasticity opportunities in Hong Kong pharmaceutical stocks, focus on two T+0 trading tools: Hong Kong Stock Connect Innovative Drug ETF Huabao (520880): its underlying index has 100% allocation to innovative drug R&D companies, with 70% of positions betting on innovative drug R&D leaders. Off-exchange feeder fund: 025221. Hong Kong Stock Connect Healthcare ETF Huabao (159137): its underlying index has over 73% AI pharmaceutical exposure and nearly 60% CXO exposure. Off-exchange feeder fund: 026922.
[Data Sources] Shanghai-Hong Kong-Shenzhen exchanges, China Securities Index Company, Hang Seng Index Company, and other public information. Weight data as of September 30, 2026. [Notes on "AI Pharmaceutical Exposure" and "CXO Exposure"] The Hong Kong Stock Connect Healthcare Theme Index tracked by Hong Kong Stock Connect Healthcare ETF Huabao covers 17 AI pharmaceutical-related constituent stocks (including pure AI pharmaceutical platforms, AI+CRO, and innovative drug companies deploying AI pharmaceuticals), with a combined weight of 73.04%, of which CXO companies account for 59%. [Institutional Views] One: Great Wall Securities, October 12, 2026, "Humanoid Robot Competition Transformation, Commercial Aerospace On-Orbit Verification"; Longhua Securities, October 12, 2026, "Global Space Race Expected to Accelerate, Focus on Commercial Aerospace Industry Chain Opportunities." [Fund Fee Rates] ETF funds do not charge sales service fees. When investors subscribe or redeem fund shares, subscribing/redemption agent brokers may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges and registration institutions. For fund fee rates, please refer to each fund's legal documents. [Special Notice] According to the fund manager's assessment, the risk levels of Hong Kong stock ETFs are all R4-Medium-High Risk, suitable for aggressive (C4) and above investors. The risk levels of other funds mentioned in this article are all R3-Medium Risk, suitable for balanced (C3) and above investors. Please refer to the sales institution for suitability matching opinions. [Risk Disclosure] Individual stocks mentioned in this article are merely objective listings of index constituent stocks and do not constitute any individual stock recommendation, nor do they represent the fund manager or fund investment direction. 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 must be responsible for their own independent investment decisions. Additionally, any views, analyses, and predictions in this article do not constitute any form of investment advice to readers, and the company assumes no direct or indirect liability for losses arising from the use of this article's content. Investors should carefully read fund legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary" to understand the risk-return characteristics of the fund and choose products suitable for their own risk tolerance. Past performance of funds does not predict future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Sales institutions (including the fund manager's direct sales institution and other sales institutions) conduct risk evaluations of the above funds in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions among different sales institutions are not necessarily consistent, and the fund product risk rating evaluation results issued by fund sales institutions must not be lower than the risk rating evaluation results made by the fund manager. Differences exist between the fund contract's description of fund risk-return characteristics and fund risk ratings due to different factors considered. Investors should understand the risk-return situation of funds and carefully select fund products in light of their own investment objectives, time horizon, investment experience, and risk tolerance, and bear risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it makes any substantive judgment or guarantee regarding the investment value, market prospects, or returns of the above funds. Fund investment involves risks and should be approached with caution.
Comments