On March 27, A+H-share pharmaceutical assets experienced a strong rally, leading gains across the market. Innovative drug stocks led the charge, with the Huabao Hong Kong Stock Connect Innovative Drug Selection ETF (520880), which focuses exclusively on innovative drug R&D companies, surging 5.51%. The Huabao Pharmaceutical ETF (562050), heavily weighted in A-share innovative drug stocks, also rose sharply by 4.21%, with both ETFs recording their largest single-day gains in history. The healthcare sector was also active, with the Huabao Hong Kong Stock Connect Healthcare ETF (159137) and the Huabao Healthcare ETF (512170) closing up 3.36% and 2.51%, respectively.
Among the A+H pharmaceutical assets, Hong Kong Stock Connect innovative drug stocks showed the strongest performance. The Huabao Hong Kong Stock Connect Innovative Drug Selection ETF (520880) demonstrated high volatility, with an intraday swing of nearly 7% and a peak gain of 5.72% during the session, forming a strong bullish candlestick pattern that engulfed the previous day's decline. Trading was particularly active, with a single-day turnover of 740 million yuan, an 80% increase from the previous day, marking the highest level in nearly four and a half months.
The Huabao Hong Kong Stock Connect Innovative Drug Selection ETF (520880) tracks 50 Hong Kong-listed companies engaged in innovative drug research and development. The median gain for its constituent stocks was close to 5%, with six stocks rising over 10%. Leading heavyweight CSPC PHARMA (01093) surged 13.85%, while 3SBio saw a 10.41% increase. Newly added constituents such as Insilico Medicine and Limin Biopharma-B, which were included in the ETF this month, also rallied over 10%.
Key catalysts driving this market movement include the following factors: 1. Significant share purchases by a major shareholder of a leading innovative drug company. On March 26, CSPC PHARMA's (01093) controlling shareholder, Cai Dongchen, substantially increased his holdings by 49.4 million shares, involving approximately 413 million Hong Kong dollars. The scale of this purchase is particularly notable, demonstrating management's strong confidence in the company's long-term value. 2. A profit turnaround for several innovative drug companies. To date, 30 constituent stocks of the Huabao Hong Kong Stock Connect Innovative Drug Selection ETF (520880) have released their 2025 annual reports. Among them, 17 innovative drug R&D companies reported profits, with 16 showing double-digit year-on-year net profit growth. Six companies, including Innovent Biologics, reported growth rates exceeding 100%, with the highest increase surpassing 1,100%.
3. Strong expectations for upcoming significant industry events. The AACR Annual Meeting is scheduled to take place from April 17 to 22, 2026, in San Diego, USA. According to incomplete statistics, 104 Chinese pharmaceutical companies will present over 250 innovative drugs at the conference, indicating a substantial increase in the overall presence of Chinese innovative drug firms on the global stage. In the secondary market, the Hong Kong Stock Connect innovative drug sector has been adjusting for two consecutive quarters, making the window for strategic accumulation increasingly clear. For targeted exposure, investors can consider the Huabao Hong Kong Stock Connect Innovative Drug Selection ETF (520880), which is composed entirely of innovative drug R&D companies. Its top ten holdings account for over 70% of the portfolio, highlighting its concentrated exposure to industry leaders. The underlying assets are Hong Kong-listed stocks, offering high volatility characteristics and the advantage of T+0 trading.
Data sources: China Securities Index Co., Ltd., Shanghai, Shenzhen, and Hong Kong Stock Exchanges, etc. Note: ETF funds do not charge sales service fees. When subscribing for or redeeming fund units, subscription/redemption agent brokers may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. For detailed fund fee structures, please refer to the respective fund's legal documents. Risk提示: The index constituents mentioned are for illustrative purposes only. Descriptions of individual stocks are not intended as any form of investment advice and do not represent the holdings or trading activities of any fund managed by the fund manager. The fund manager assesses the risk rating of the Huabao Hong Kong Stock Connect Innovative Drug Selection ETF and its feeder fund, as well as the Huabao Hong Kong Stock Connect Healthcare ETF and its feeder fund, as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. The risk rating for the Healthcare ETF, Pharmaceutical ETF, and their feeder funds is assessed as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this text (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind for the reader, and no responsibility is accepted for any direct or indirect losses resulting from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of a fund is not indicative of its future performance. Fund investment carries risks.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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