On the afternoon of April 2, A-shares accelerated their decline, with the Shanghai Composite Index falling over 1%. The pharmaceutical sector bucked the trend, demonstrating notable resilience. The sole ETF tracking the overall performance of the pharmaceutical sector, Huabao Pharmaceutical ETF (562050), rose more than 1% intraday, reclaiming its 120-day moving average against the broader market downturn.
Among its constituents, innovative drug leader Sunshine Guojian Pharmaceutical (Shanghai) Co., Ltd. surged over 14% following its earnings report, hitting a new all-time high. Bright Gene Biomedical advanced more than 7%, while traditional Chinese medicine stocks such as Yunnan Baiyao and Jichuan Pharmaceutical rose approximately 2% against the market trend. On the downside, Chuanning Biological, Conhong Pharmaceutical, and Dizal Pharmaceutical led the declines.
On the news front, Sunshine Guojian Pharmaceutical disclosed its 2025 annual report, revealing revenue of 4.2 billion yuan, a 252.63% year-over-year increase. Net profit attributable to shareholders reached 2.9 billion yuan, up 311.5% year-over-year, and adjusted net profit was 2.77 billion yuan, soaring 1025% compared to the previous year.
Overall, among the 28 constituent companies of Huabao Pharmaceutical ETF (562050) that have reported full-year 2025 results, 23 were profitable, and 16 saw positive net profit growth. Sunshine Guojian Pharmaceutical and RemeGen currently lead in profit growth rates, with increases of 311% and 148%, respectively.
For a one-stop investment in both innovative drugs and traditional Chinese medicine, consider the exclusive on-market Huabao Pharmaceutical ETF (562050) and its off-market feeder fund (024986). The ETF aggregates 50 leading pharmaceutical companies from the A-share market, heavily weighted towards innovative drugs while allocating approximately 25% to traditional Chinese medicine stocks. The traditional Chinese medicine segment offers relatively high dividend yields and stable performance, which can partially hedge against the high volatility of innovative drugs, thereby reducing the overall index volatility and drawdown.
Data is sourced from the Shanghai and Shenzhen Stock Exchanges and the China Securities Index Company.
Note: The mentioned ETF does not charge a sales service fee. Fund fee details are available in the respective legal documents.
Risk Disclosure: The Pharmaceutical ETF and its feeder fund passively track the CSI Pharmaceutical Index, which has a base date of December 30, 2011, and was published on July 15, 2013. The index constituents are adjusted according to its methodology, and its past performance does not indicate future results. The mention of index constituents is for illustrative purposes only and does not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager assesses the risk level of the Pharmaceutical ETF and its feeder fund as R3-Medium Risk, suitable for balanced (C3) and above investors. Suitability assessments should be confirmed with the selling institution. Any information presented is for reference only, and investors are responsible for their own investment decisions. The views, analyses, and forecasts herein do not constitute investment advice, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not assure the performance of this fund. Invest with caution.
A MACD golden cross signal has formed, indicating positive momentum for several stocks.
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