The healthcare sector, having been oversold, launched another offensive on July 14th, leading the market in early trading and maintaining its gains into the afternoon.
The medical sector strengthened throughout the day, with the largest ETF in the market by scale, the Huabao Medical ETF (512170), touching a high of 2.89% late in the session and closing up 2.57% on heavy volume, with turnover reaching 8.2 billion yuan. Over 200 million yuan flowed into the fund via net subscriptions on the previous day amid the dip.
Among its constituent stocks, Joincare Pharmaceutical Group Industry Co., Ltd. hit the daily limit-up. Leading contract research, development, and manufacturing organizations (CRDMOs) collectively advanced, with giant WuXi AppTec Co., Ltd. surging 6%. Pharmaron Beijing Co., Ltd., which forecasted up to 10% growth in first-half net profit, saw its stock price skyrocket 8.36%.
The pharmaceutical sub-sector gained momentum in the afternoon, with innovative drugs once again taking the lead. Dizal Pharmaceutical surged in a straight line after the midday break to hit a 20% limit-up. Heavyweight stock Kelun Pharmaceutical Co., Ltd. jumped 8.26%. The only exchange-traded fund tracking the pharmaceutical index, the Huabao Pharmaceutical ETF (562050), rose 1.96% for its fourth consecutive gain, decisively breaking through its 200-day moving average.
During the midday break, Dizal Pharmaceutical announced it had entered into a licensing agreement with AstraZeneca for Sunvozertinib®. The deal involves an upfront payment of $600 million and potential milestone payments of up to $900 million. At the latest exchange rate, the upfront payment is approximately 4.069 billion yuan, setting a new record for the highest upfront payment for a domestically developed small-molecule targeted drug going overseas.
Heavyweight policies have been frequently introduced in the healthcare sector recently, strongly boosting market sentiment.
On July 13th, the State Council officially issued the "National Health '15th Five-Year' Plan," which for the first time explicitly proposed "supporting the development and application of innovative drugs and medical devices across the entire chain." It clearly outlined key technology攻坚 directions such as cell and gene therapy (CGT), novel antibodies, high-end imaging equipment, and artificial intelligence (AI)-empowered medicine, accompanied by measures to optimize the review and approval system and improve the medical insurance payment guarantee mechanism.
On July 9th, the "National Essential Drug List (2026 Edition)" was officially released after an eight-year interval. The new list expanded the total number of varieties to 794, with 16 innovative drugs included for the first time on a large scale, accounting for over 5% of the list. Guojin Securities stated that driven by policy support for application and clinical刚性 demand, it is optimistic about the volume growth potential of the newly included innovative drugs in this list.
Zhang Fang, portfolio manager of the Huabao Medical ETF (512170) and the Huabao Pharmaceutical ETF (562050), indicated that after years of adjustment, the healthcare sector's current valuation is at a historical bottom. The policy environment has shifted from suppression to support, and the fundamentals of some healthcare sub-sectors are showing signs of improving景气度, making them worthy of close attention going forward.
To capture opportunities in the healthcare rebound, consider these two key investment instruments:
The Huabao Medical ETF (512170) and its corresponding feeder fund (012323): The largest healthcare/medical ETF in the market by scale, with the latest assets under management exceeding 25.8 billion yuan. It focuses on medical services (including CRDMOs) and medical devices (including brain-computer interfaces), while also covering the AI-medicine theme.
The Huabao Pharmaceutical ETF (562050) and its corresponding feeder fund (024986): The only ETF in the market tracking the pharmaceutical index, featuring an exclusive allocation of "75% innovative drugs + 25% traditional Chinese medicine," combining the high growth of innovative drugs with the high dividends of traditional Chinese medicine.
Data is sourced from the Shanghai and Shenzhen Stock Exchanges, China Securities Index Co., Ltd., etc. Institutional views are sourced from: Guojin Securities, July 10, 2026, "Healthcare Industry Review: New National Essential Drug List Released, Focus on Volume Growth Potential of Newly Added Products."
Note: The ETFs mentioned in this article do not charge a sales service fee. Fund fee details are available in the respective fund legal documents.
Risk Warning: The index constituent stocks mentioned are for展示 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 constituent stocks is adjusted according to the index's compilation rules. The annual historical returns/annualized volatility of the CSI Medical Index from 2021 to 2025 were: -14.71%/34.42%, -25.10%/29.45%, -24.25%/18.63%, -17.16%/36.02%, 3.08%/19.73%, respectively. The annual historical returns/annualized volatility of the CSI Pharmaceutical Index from 2021 to 2025 were: -9.10%/23.43%, -21.09%/25.92%, -3.70%/18.25%, -6.53%/29.46%, 9.38%/16.12%, respectively. The composition of index constituent stocks is adjusted according to the index's compilation rules; past performance is not indicative of future results. The risk等级 of the Medical ETF Feeder Fund, as assessed by the fund manager, is R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. The risk等级 of the Medical ETF and Pharmaceutical ETF is 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, any form of表述, etc.) is for reference only. Investors must be responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, nor shall they bear any responsibility for any direct or indirect losses arising from the use of the content herein. Fund investment involves risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be approached with caution.
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