Wanlian Securities released a research report stating that as of Q1 2026, the structure of public fund holdings in the healthcare sector continues to concentrate towards the innovation chain, including innovative drugs and CXO (Contract Research, Development, and Manufacturing Organizations). The report suggests a key focus on biotech companies with potential for FIC (First-in-Class) or BIC (Best-in-Class) drugs, as well as large pharmaceutical firms that have successfully transformed. Additionally, attention is recommended for CXO companies with ample order backlogs and capacity layouts in emerging fields such as peptide synthesis and CGT (Cell and Gene Therapy). Wanlian Securities' main views are as follows:
As of Q1 2026, the scale of healthcare-themed funds increased by 5.99 billion yuan quarter-over-quarter. The percentage of the pharmaceutical and biological sector's total market value among all heavily held industries increased by 0.90 percentage points quarter-over-quarter. The total market value of heavy holdings in biological products and medical services increased significantly. The structure of public fund holdings in healthcare continues to concentrate towards the innovation chain, including innovative drugs and CXO.
The scale of healthcare-themed funds increased by 5.99 billion yuan quarter-over-quarter. As of Q1 2026, the net asset value of Tonghuashun healthcare industry-themed funds was 207.202 billion yuan, an increase of 5.99 billion yuan compared to Q4 2025. Among these, the net asset value of Tonghuashun healthcare ETFs accounted for 56.41% of the net asset value of healthcare industry-themed funds, an increase of 5.13 percentage points compared to Q4 2025.
The percentage of the pharmaceutical and biological sector's total market value among all heavily held industries increased by 0.90 percentage points quarter-over-quarter. As of Q1 2026, among all public funds, the total market value of heavy holdings in the Shenwan pharmaceutical and biological sector was 329.79 billion yuan, an increase of 14.576 billion yuan compared to Q4 2025. The total market value of heavy holdings in the pharmaceutical and biological sector accounted for 8.85% of the total market value of heavy holdings across all industries, an increase of 0.90 percentage points compared to Q4 2025.
The total market value of heavy holdings in biological products and medical services increased significantly quarter-over-quarter. As of Q1 2026, among all public funds, the total market value of heavy holdings in Shenwan secondary sectors was as follows: chemical pharmaceuticals at 119.400 billion yuan, biological products at 75.881 billion yuan, medical services at 70.978 billion yuan, medical devices at 46.042 billion yuan, pharmaceutical commerce at 7.673 billion yuan, and traditional Chinese medicine II at 9.815 billion yuan. Among these, the total market value of heavy holdings in medical services, biological products, and traditional Chinese medicine II increased by 14.637 billion yuan, 8.205 billion yuan, and 273 million yuan respectively compared to Q4 2025. The total market value of heavy holdings in chemical pharmaceuticals, medical devices, and pharmaceutical commerce decreased by 4.700 billion yuan, 3.219 billion yuan, and 620 million yuan respectively compared to Q4 2025.
Among the top five heavily held stocks by total market value in the secondary sub-sectors of pharmaceuticals and biology, innovative drug companies and CXO firms saw increased holdings. As of Q1 2026, among all funds, the top five heavily held stocks by total market value in the Shenwan secondary sector of chemical pharmaceuticals were: Hengrui Pharmaceuticals (A-shares + H-shares), BeiGene (A-shares + H-shares), CSPC Pharmaceutical Group, Shenzhen Salubris Pharmaceuticals, and Baili Pharmaceutical. The top five heavily held stocks by total market value in the biological products sector were: Innovent Biologics, Akeso, Kelun-Biotech Biopharmaceutical, RemeGen (A-shares + H-shares), and 3SBio. The top five heavily held stocks by total market value in the medical services sector were: WuXi AppTec (A-shares + H-shares), Tigermed Consulting (A-shares + H-shares), Pharmaron (A-shares + H-shares), Asymchem Laboratories (A-shares + H-shares), and Aier Eye Hospital Group. Among these, innovative drug companies such as CSPC Pharmaceutical Group, Shenzhen Salubris Pharmaceuticals, Baili Pharmaceutical, Akeso, and RemeGen saw significant increases in holdings, as did CXO firms such as WuXi AppTec, Tigermed Consulting, Pharmaron, and Asymchem Laboratories.
Risk factors include geopolitical risks, R&D failure risks, and the lag in the disclosure of public fund quarterly reports.
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