On June 12th, healthcare-themed sectors in both the A-share and H-share markets rallied in tandem.
In the A-share market, medical equipment and medical services stocks rebounded across the board. MGI Tech Co., Ltd led the gains, surging nearly 14%, while Weigao Group secured its second consecutive daily limit-up. KingMed Diagnostics and Bloomage Biotech rose over 7%. The largest medical ETF by scale in the market, the Hwabao WP Healthcare ETF (512170), saw intraday gains exceeding 2% and is poised for its third consecutive positive close. Trading was active, with real-time turnover surpassing 4 billion yuan.
It is crucial to note that the healthcare sector has been predominantly in a correction phase recently. The ETF (512170) previously experienced eight consecutive days of declines, with its price repeatedly hitting 20-month lows. The inflection point for this phase remains unclear, and investors must be vigilant about risks and avoid reckless "bottom-fishing."
The rebound in the Hong Kong Stock Connect healthcare sector was more pronounced. The Hwabao WP Hong Kong Stock Connect Healthcare ETF (159137) surged up to 3% intraday and is currently up over 2.55%, reclaiming its 5-day moving average. Constituent stocks in the innovative drug industry chain contributed significantly to the gains. Kelun-Biotech led with a rise of over 7%, Akeso Inc gained over 5%, while both WuXi Biologics and WuXi AppTec advanced over 2%.
Notably, the semi-annual rebalancing of the underlying index for the Hwabao WP Hong Kong Stock Connect Healthcare ETF (159137), the Hong Kong Stock Connect Healthcare Theme Index, will take effect on the next trading day, June 15th.
Four constituent stocks are slated for removal: Kelun-Biotech, Akeso Inc, Duality Biologics-B, and Zai Lab.
Nine constituent stocks are slated for inclusion: Jiangsu Hengrui Pharmaceuticals, China Medical System, Simcere Pharmaceutical Group, Grand Pharmaceutical Group, BioMap-B, Federal Pharmaceutical, Hutchmed, Ascentage Pharma, and Xuanzhu Biopharm-B.
From a market capitalization perspective, this rebalancing is expected to bring over 300 billion Hong Kong dollars in incremental market value to the index, further enhancing its concentration on leading companies. Concept-wise, the new additions are predominantly leading innovative drug companies. The index's structural layout encompassing "CXO + Innovative Drugs + AI Healthcare + Medical Equipment" will be further strengthened, positioning it to become the most comprehensive and representative index covering the Hong Kong Stock Connect healthcare field.
Huayuan Securities noted that the pharmaceutical industry is driven by innovation, with the biotech and high-end medical equipment sectors warranting attention. Continued increases in corporate R&D investment, coupled with strong market demand for innovative drugs and advanced medical devices, contribute to the industry's overall steady growth trend, underpinning its long-term investment value.
For positioning in core healthcare assets during the low-point recovery phase, consider these two key investment tools:
The Healthcare ETF (512170) and its feeder fund (012323): The largest medical/pharmaceutical ETF by scale in the market, focusing on A-share medical equipment (including brain-computer interfaces) and medical services (including CXO), while also covering the AI healthcare theme.
The Hwabao WP Hong Kong Stock Connect Healthcare ETF (159137) and its feeder fund (026922): With a CXO concentration exceeding 40%, it comprehensively covers popular themes like innovative drugs, AI healthcare, and medical equipment (including brain-computer interfaces). Its underlying assets are Hong Kong stocks, offering high elasticity, and the ETF supports T+0 trading.
Data is sourced from the Shanghai, Shenzhen, and Hong Kong stock exchanges, CSI Index Company, etc. *Note: Regarding the largest medical ETF by scale, Hwabao WP Healthcare ETF (512170): As of May 31, 2026, its scale was 258.74 billion yuan, ranking first among all medical/pharmaceutical ETFs in the market.
Note: The ETF funds mentioned in this article do not charge sales service fees. Please refer to each fund's legal documents for specific fee structures.
Risk Disclosure: The index constituents mentioned are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the asset manager. The composition of the underlying index's constituents is adjusted according to its compilation rules. The fund manager assesses the risk rating of the feeder funds for the Healthcare ETF and the Hwabao WP Hong Kong Stock Connect Healthcare ETF as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. The risk rating for the Healthcare ETF is 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,评论, forecasts, charts, indicators, theories, or any form of表述) is for reference only. Investors are responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not indicate its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution in funds.
Comments