The pharmaceutical sector showed unexpected movement in the afternoon of October 19, with the CSI Medical Index briefly surging over 2%. The Medical ETF Huabao (512170), which closely tracks this index, recovered its half-year line.
CXO leaders led the gains, with Pharmaron Beijing Co., Ltd. (ASX: 300759) rising more than 8% and Asymchem Laboratories climbing over 4%. Medical device stocks were also active, with Snibe rising nearly 6%.
The pharmaceutical manufacturing sector also started up in the afternoon, with traditional Chinese medicine stocks showing strong momentum as Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited (ASX: 600329) hit the daily limit. Innovative drug concepts rose collectively, with Kelun Pharmaceutical gaining over 5% and Zelgen Biopharmaceuticals-U rising more than 4%. The Pharmaceutical ETF Huabao (562050) underlying index touched a high of over 1.4%.
On the news front, on October 16, the Ministry of Commerce and the Ministry of Science and Technology publicly solicited opinions on revising the Catalog of Technologies Prohibited or Restricted from Export in China. Among the proposed additions are five items in biomedicine, covering cell and gene therapy (CGT), small nucleic acids (siRNA), and pathogenic microorganisms. Analysts noted that this draft is narrower in scope compared to the earlier version, innovative drug licensing for overseas markets is not restricted, and there is no impact on CXO company operations. The outlook remains positive for the global influence of China's innovative drugs and industrial chain, with industry sentiment maintaining an upward trajectory.
From an investment strategy perspective, Zheshang Securities believes that at the current juncture, on the equity side, structural rebalancing is recommended across five major directions: pharmaceuticals and biologics, utilities, real estate, building materials, and banking. Pharmaceuticals and biologics, under the long-term logic of population aging and industrial upgrading, have valuations and chip structures that are already attractive.
Related investment tools of interest: Medical ETF Huabao (512170): a flagship pharmaceutical and medical ETF with a scale of 25.624 billion yuan as of the second-quarter report. It focuses on medical devices plus medical services (with CXO content exceeding 30%) and also covers AI healthcare. Off-exchange feeder fund: 012323. Pharmaceutical ETF Huabao (562050): the only ETF in the entire market tracking the pharmaceutical index, with an exclusive allocation of approximately 70% innovative drugs plus 20% traditional Chinese medicine, combining the high growth of innovative drugs with the high dividends of traditional Chinese medicine. Off-exchange feeder fund: 024986.
Data source: Shanghai-Hong Kong-Shenzhen exchanges, China Securities Index Company, Hang Seng Index Company, and other public information. Weight data as of September 30, 2026. Institutional view: Zheshang Securities, October 11, 2026, "October Global Asset Allocation Monthly Report: Major Asset Classes Facing a Switching Window." Fund fee rates: ETFs do not charge sales service fees. When investors subscribe to or redeem fund shares, the subscription and redemption agent broker may charge a commission of no more than 0.5%, which includes fees collected by the stock exchange and registration institution. Fund fee rates are detailed in each fund's legal documents.
Special reminder: The risk rating assessed by the fund manager for the Medical ETF Huabao feeder fund is R4-medium-high risk, suitable for aggressive (C4) and above investors. The risk ratings for the Pharmaceutical ETF Huabao and its feeder fund, as well as the Medical ETF Huabao, are R3-medium risk, suitable for balanced (C3) and above investors.
Risk disclosure: The index constituent stocks mentioned in this article are for demonstration purposes only. Individual stock descriptions do not constitute investment advice in any form and do not represent the holdings or trading activities of any fund managed by 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 must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor do they assume any responsibility for direct or indirect losses caused by the use of the content herein. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
Comments