China's three major A-share indices moved within a narrow range today (September 30). By the close, the Shanghai Composite rose 0.31% to 3,842.19 points, while the Shenzhen Component fell 0.11% and the ChiNext Index dropped 0.23%. Combined turnover across the Shanghai, Shenzhen, and Beijing markets reached 1.45 trillion yuan, a modest increase of 28.5 billion yuan from the prior day.
On the board, A-share and Hong Kong pharmaceutical stocks surged together, with the underlying indices of the popular on-market healthcare ETF (512170) and pharma ETF (562050) jumping 2.82% and 2.68% respectively. Property policies were released intensively, drawing significantly greater capital attention, and the underlying index of the property ETF (159707), which focuses on central and state-owned enterprises and high-quality developers, climbed as much as 4.06%. Baijiu stocks launched a fierce afternoon rally, and the underlying sub-index of the food and beverage ETF (515710) briefly rose over 2% during the session. In Hong Kong, pharmaceutical stocks attacked with high elasticity, and the underlying indices of the Hong Kong Stock Connect innovative drug ETF (520880) and Hong Kong Stock Connect medical ETF (159137) both posted intraday gains of over 4%.
Looking ahead, Founder Securities stated that the A-share market's recovery rally is expected to gradually begin, and the cost-effectiveness of actively positioning now continues to improve. However, the recovery may face twists and turns, with an upward oscillation remaining the main theme. In terms of operations, three areas of opportunity are worth watching: first, the AI industry trend and prosperity remain solid, and after crowding levels recede, allocation value rises significantly; second, watch for bargain-hunting opportunities in HALO assets, and after oil prices pull back, focus on non-ferrous metals plus chemicals related to core resources; third, pay attention to non-bank financials with a good match between performance and valuation. Wanlian Securities recommends focusing on: (1) the AI and computing power infrastructure industry chain, where policy support and recovering earnings underpin the continued prosperity of the AI industry; (2) the high-dividend and upstream resource sectors, where profits are expected to continue recovering.
In the ETF Hotspot Review, we focus on the trading and fundamental conditions of thematic ETFs in sectors including A+H pharmaceuticals, property, and food and beverage.
Pharmaceuticals Lead All Day! Giants Intensify AI Drug Development Push, Doubling Bull Stock Hits New High Again! Hong Kong Stock Connect Medical ETF (159137) Reaches Stage High, Underlying Index Probes 4%
On the final day of September, A-share and Hong Kong pharmaceutical stocks surged together to close the month. A-share biopharmaceuticals led all industries, with the underlying indices of the popular on-market healthcare ETF (512170) and pharma ETF (562050) jumping 2.82% and 2.68% respectively. Hong Kong pharmaceutical stocks attacked with high elasticity, and the underlying indices of the Hong Kong Stock Connect innovative drug ETF (520880) and Hong Kong Stock Connect medical ETF (159137) both posted intraday gains of over 4%, with both closing up nearly 3.8%, of which the exchange closing price of 159137 hit a six-month high!
On the board, AI drug development returned to the main line, with pure-play targets and upstream CXO names in the industry chain leading gains strongly! Joinn Laboratories rose 15.62%, Biocytogen-B gained over 8%, and GenScript Biotech closed up 8.36%, once again hitting a record high, with its share price doubling year-to-date!
On the news front, on September 28, multinational pharmaceutical company Roche announced it had begun building its own AI laboratory and would pursue "AI self-sufficiency" in R&D. Over the past three quarters, AI contributed to 40% of Roche's pipeline decisions. On September 23, Anthropic disclosed that Claude autonomously discovered a previously uncharacterized ART enzyme system. Earlier, on September 16, Novo Nordisk partnered with Anthropic to advance ClaudeScience for drug R&D. Shanxi Securities stated that the high importance attached to AI by AI model companies and numerous MNCs fully demonstrates that AI drug development is one of the important directions for future AI applications. In the short term, a large number of drug molecules designed through AI models are expected to convert into new orders for upstream service companies; in the medium to long term, AI drug development is expected to greatly improve the efficiency and quality of drug R&D.
According to iiMedia Research data, the global AI drug development market was valued at $790 million in 2021, climbed to $2.41 billion in 2025, and is expected to reach $2.99 billion in 2026, a nearly fourfold increase within six years. Zhongyan Puhua Industry Research Institute predicts that by 2035, the global AI drug development market is expected to exceed $46 billion.
With AI drug development riding the wave, how can investors follow the trend? Two T+0 trading tools are worth watching: Hong Kong Stock Connect Medical ETF (159137), whose underlying index has nearly 70% AI drug development exposure and over 50% CXO exposure, with an off-exchange feeder fund: 026922. Hong Kong Stock Connect Innovative Drug ETF (520880), whose underlying index allocates 100% to innovative drug R&D companies, with 70% of positions betting on innovative drug R&D leaders, with an off-exchange feeder fund: 025221.
Note on "AI drug development exposure" and "CXO exposure": The Hong Kong Stock Connect Medical Theme Index tracked by the Hong Kong Stock Connect Medical ETF covers 17 AI drug development-related constituent stocks (including pure AI drug development platforms, AI plus CRO, and innovative drug companies deploying AI drug development), with a combined weight of 69.52%, of which CXO companies account for 55%.
Major Mortgage Interest Subsidy Lands, Three Key Features Boost Sector Sentiment! Property ETF (159707) Trading Volume Surges 100%! Tracked Index Probes 4%
Driven by the intensive release of property policies, sector sentiment recovered and capital attention rose significantly. The property ETF (159707), which focuses on central and state-owned enterprises and high-quality developers, recorded full-day turnover of 439 million yuan, surging 100% from the prior day, with trading running hot! Its tracked index climbed as much as 4.06% and closed up 2.68%, securing a three-day winning streak!
Among constituent stocks, Lujiazui hit the daily limit, Binjiang Group rose over 7%, Vanke A and Shanghai Lingang gained over 4%, while Greenland Holdings and Quzhou Development followed higher.
In recent times, property policies have been released intensively: the Ministry of Housing and Urban-Rural Development's "15th Five-Year Plan" released positive signals, new housing provident fund regulations took effect, the State Council Standing Committee laid out plans to stabilize the housing market, the mortgage interest subsidy landed, and multiple localities followed up with new local property policies. In particular, the mortgage interest subsidy policy that landed on September 29 drew widespread market attention. According to institutional interpretations, the policy has the following features: 1. After the subsidy, the mortgage burden may be notably lower than rent, with monthly payments on a 1 million yuan loan reduced by about 830 yuan, and monthly payments more likely than down payments or total prices to become the dividing line for home purchases, directly benefiting working-class families; 2. The subsidy is funded by fiscal spending and does not harm banks' net interest margins, avoiding the problem that mortgage rate cuts can easily damage bank interest margins; 3. The triple conditions of "first home, under 120 square meters, under 1.5 million yuan" precisely target third- and fourth-tier cities and outer suburbs of second-tier cities, pointing to the parts of this round's inventory that are hardest to digest.
Has the turning point arrived, or is it expectation guidance? CITIC Securities pointed out that when housing prices reach a reasonable level, the effect of demand-side stimulus will be relatively significant. The reform of existing-home sales has greatly reduced delivery risk and limited future supply growth, while demand stimulus also makes monthly payments potentially significantly lower than rent, thereby pushing the real estate market from quantitative change to qualitative change and ending a housing price decline cycle of more than six years. CITIC Securities summarized the policy thread as "from 828 to 929, from supply-side reform to demand stimulus," and noted that rigid demand benefits directly while upgrade demand benefits indirectly. In the fourth quarter, China's property sales may see a recovery.
Looking ahead, CITIC Securities highlighted policy space. According to the State Council Standing Committee's statement, there is policy room in areas including lowering housing provident fund loan rates, allowing mortgage interest to offset personal income tax, further reducing transaction taxes and fees, and acquiring existing commercial housing and existing land with greater intensity.
In terms of valuation, leading property companies represented by central and state-owned enterprises and high-quality developers are still at low valuations. As of September 29, the latest PB valuation of the CSI 800 Real Estate Index was only 0.59 times, lower than more than 95% of the time range over the past 10 years, showing obvious low-valuation characteristics and potentially large room for repair.
To position in central and state-owned enterprises and high-quality developers, it is recommended to focus on the property ETF (159707). Information shows that the property ETF (159707) tracks the CSI 800 Real Estate Index, gathering the market's top high-quality developers with high exposure to central and state-owned enterprises! Against the backdrop of industry consolidation, leading property companies may have greater elasticity!
Mid-Autumn Premium Baijiu Holds Firm! Food and Beverage Sector Attacks in Afternoon, Food and Beverage ETF (515710) Underlying Index Rises Over 2% Intraday! Has a Low-Level Reversal Signal Appeared?
The food and beverage sector attacked in the afternoon, with baijiu and other liquor stocks among the top gainers. By the close, both Guyuelongshan and Jinhui Liquor hit the daily limit, Gujing Distillery rose over 5%, and Luzhou Laojiao, Shanxi Fenjiu, and Jinshiyuan also ranked among the top gainers. The underlying sub-index of the food and beverage ETF (515710) briefly rose over 2% intraday and finally closed up 1.84%.
Note: As of September 29, 2026, in the sub-index, Guyuelongshan, Jinhui Liquor, Gujing Distillery, Luzhou Laojiao, Shanxi Fenjiu, and Jinshiyuan accounted for weights of 0.49%, 0.33%, 1.42%, 5.36%, 5.39%, and 2% respectively.
On the news front, data showed that the Mid-Autumn baijiu market displayed clear structural divergence, with premium baijiu's counter-cyclical attributes standing out while the sub-premium segment came under overall pressure. Feitian Moutai, as the industry bellwether, saw strong gift demand, with terminal transaction prices maintained above 1,800 yuan; the company continued to release supply through iMoutai and restricted purchases at self-operated stores to curb speculation, showing notable price resilience. Wuliangye and Guojiao 1573 prices stabilized slightly, but sales momentum lagged Moutai; most sub-premium and regional famous liquor companies faced declining corporate welfare and banquet demand, distributors reduced advance stocking, product prices approached floor levels, and the industry entered a stage of shrinking competition.
Some analysts noted that subsequent focus should be on National Day demand release, post-holiday inventory, and the intensity of supply contraction by liquor companies. Next year's Spring Festival will be a more important node for verifying demand recovery and the effectiveness of industry consolidation.
From a valuation perspective, the food and beverage sector remains at low valuations. Data showed that as of yesterday's close (September 29), the price-to-earnings ratio of the underlying sub-index of the food and beverage ETF (515710) was 19.89 times, at a low level of the 6.65th percentile over the past 10 years (data source: Wind), highlighting medium- to long-term allocation cost-effectiveness.
Looking ahead, Sinolink Securities stated that the market remains relatively cautious about baijiu fundamentals, and short-term market style is rotating at high frequency. It believes that baijiu companies with alpha endowments currently offer good trading error tolerance: on one hand, when market risk appetite fluctuates, the appeal of dividend assets relatively increases; on the other hand, valuation repair options are added under pro-cyclical beta.
CSC Financial stated that the baijiu industry is in a bottoming stage, liquor companies are generally shifting to consumer-facing operations, and some regional liquor companies are expected to achieve positive performance growth in the second quarter. The dividend yields of leading liquor companies are attractive, and improvement in Moutai wholesale prices is expected to drive valuation repair. It recommends focusing on some baijiu leaders and some regional liquor companies with solid fundamentals and high dividends.
To configure core assets in the food and beverage sector in one click, focus on the food and beverage ETF (515710). According to China Securities Index Co. statistics, the food and beverage ETF (515710) tracks the CSI Sub-industry Food and Beverage Industry Theme Index, with baijiu leaders accounting for nearly 50% of holdings. Off-exchange investors can also use the food and beverage ETF feeder funds (Class A 012548, Class C 012549) to position in core assets of the food and beverage sector.
Data source: Shanghai and Shenzhen stock exchanges, etc., as of September 30, 2026. Note: When investors subscribe to or redeem fund shares, subscription and redemption agency brokers may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges and registration institutions. Fund fee rates are detailed in the fund legal documents.
Institutional views reference sources: Founder Securities special strategy report dated September 28, 2026, "Overseas Rate Hikes Land, Repair Window Gradually Opens — 2026 Fourth Quarter Asset Allocation Report"; Wanlian Securities strategy tracking report dated September 28, 2026, "Heads of State Talks Chart a New Chapter in China-US Relations"; Shanxi Securities September 30, 2026, "Pharmaceutical Industry Dynamic Update - Biopharmaceuticals: AI Technology Expected to Drive Rapid Development of the Pharmaceutical Industry, Focus on the AI Drug Development Sector"; CITIC Securities report released September 29, "Policies Reduce Residents' Home-Buying Burden, Expected to Push the Real Estate Market from Quantitative Change to Qualitative Change"; Sinolink Securities September 26 food and beverage industry research "Baijiu Mid-Autumn Feedback Stable, Recommend Sector Allocation at Low Expectations"; CSC Financial September 27 securities research report "As the Mid-Autumn and National Day Peak Season Approaches, Focus on Oversold Stocks and Third-Quarter Earnings Outperformers."
Risk warning: The Hong Kong Stock Connect Innovative Drug ETF passively tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, whose base date is December 31, 2020, and publication date is July 17, 2023; the Hong Kong Stock Connect Medical ETF passively tracks the Guozheng Energy Storage Battery Index, whose base date is December 31, 2018, and publication date is July 21, 2022; the pharma ETF passively tracks the CSI Pharmaceutical Index, whose base date is December 30, 2011, and publication date is July 15, 2013; the healthcare ETF passively tracks the CSI Medical Index, whose base date is December 31, 2004, and publication date is October 31, 2014; the food and beverage ETF passively tracks the CSI Sub-industry Food and Beverage Industry Theme Index, whose base date is December 31, 2004, and publication date is April 11, 2012; the property ETF passively tracks the CSI 800 Real Estate Index, whose base date is December 31, 2004, and publication date is December 21, 2012. The composition of index constituent stocks is adjusted from time to time according to the index compilation rules, and its back-tested historical performance does not predict the future performance of the index. Individual stocks mentioned in the article are only objective examples of index constituent stocks and are not recommendations for any individual stock, 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 any investment decisions they make independently. In addition, any views, analysis, and forecasts in this article do not constitute investment advice of any kind to readers, and the company assumes no responsibility for direct or indirect losses caused by the use of this 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 a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. According to the fund manager's assessment, the risk levels of the food and beverage ETF and its feeder funds, the pharma ETF and its feeder funds, the healthcare ETF, and the property ETF are R3-medium risk, suitable for balanced (C3) and above investors; the risk levels of the Hong Kong Stock Connect Medical ETF and its feeder funds, the Hong Kong Stock Connect Innovative Drug ETF and its feeder funds, and the healthcare ETF feeder fund are R4-medium-high risk, suitable for aggressive (C4) and above investors. The suitability matching opinion should be based on the sales institution. 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. The suitability opinions of various sales institutions are not necessarily consistent, and the risk rating evaluation results of fund products issued by fund sales institutions shall not be lower than the risk rating evaluation results made by the fund manager. There are differences between the fund's risk-return characteristics in the fund contract and the fund risk rating due to different factors considered. Investors should understand the risk-return situation of the fund, carefully select fund products in light of their own investment objectives, 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 on the investment value, market prospects, and returns of the funds. Fund investment requires caution.
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