The healthcare industry continues its strong performance recently, giving rise to several high-flying stocks.
This week, the A-share market maintained high volatility. After hitting a decade-high, the Shanghai Composite Index retreated to consolidate, briefly surpassing then losing the 4,000-point level. The Shenzhen Component Index, ChiNext Index, STAR 50, and Beijing Exchange 50 all recorded minor declines. Daily trading volumes fluctuated around 2 trillion yuan, with weekly turnover totaling 10.22 trillion yuan.
**Margin Trading Sees 634 Billion Yuan Net Purchases YTD** Margin traders sustained their buying spree, adding over 12.6 billion yuan net this week. Year-to-date net purchases reached 634 billion yuan, just 40 billion shy of the record annual net buying volume set in 2014. The power equipment sector attracted over 5.3 billion yuan in net purchases, while nonferrous metals and basic chemicals each drew more than 3 billion yuan. Electronics and pharmaceuticals/biotech sectors saw over 1 billion yuan net inflows. Conversely, the computer sector faced 2.8 billion yuan in net sell-offs, automobiles saw 1.7 billion yuan outflows, and non-bank financials/defense industries also recorded net selling exceeding 100 million yuan.
Wind data shows pharmaceuticals/biotech led this week’s main fund inflows with 30.5 billion yuan, followed by basic chemicals (24.3 billion yuan). Food/beverages, real estate, power equipment, and retail sectors each attracted over 10 billion yuan, while nonferrous metals, machinery, agriculture, and textiles garnered 6+ billion yuan inflows. Meanwhile, electronics suffered 16.1 billion yuan in outflows, computers lost 8.9 billion yuan, and defense/communications shed 4.4 billion/2.6 billion yuan respectively.
**Banking Sector Repeatedly Hits Record Highs** Banking stocks have surged consecutively, with the sector index frequently setting new records. Annually, bank shares have risen for three straight years, cumulatively gaining 94%—far outpacing the Shanghai Composite’s 29% return and exceeding the Beijing Exchange 50 (60%), ChiNext (33%), and STAR 50 (42%) indices.
Agricultural Bank of China accelerated its rally, marking four consecutive years of gains with progressively higher returns: 8.82% (2022), 42.79% (2023), 60.88% (2024), and 66.67% YTD—totaling a 317% surge. ICBC, CCB, and Bank of China also soared 141%, 122%, and 175% respectively during this period.
Galaxy Securities notes that policy-driven credit structure optimization and interest margin protection, coupled with capital market recovery expanding fee-based income opportunities, alongside long-term transformation under the "15th Five-Year Plan," highlight banking sector potential. Sustained mid-term dividends and incremental capital inflows further underscore its value.
**Healthcare Sector Spawns Market Stars** The healthcare industry’s strength persists, with pharmaceutical commerce and biotech vaccine sub-indices rising for six straight days, private hospitals gaining for five, and immunotherapy/innovative drugs/weight-loss treatments maintaining weekly uptrends.
Notable performers include Cowealth Medical China Co.,Ltd. (603122), which skyrocketed 265% with 12 limit-ups in 14 sessions; Hpgc Renmintongtai Pharmaceutical Corporation (600829) locking five consecutive boards; Jindike hitting three boards in five days; while Panlong Pharma and Zhong Sheng Pharma each secured two boards in three days, and Teyi Pharma two in four.
To address aging demographics, China has rolled out policies like the "Healthy China 2030" blueprint. The China Health Management Association projects the industry’s scale to reach 174 trillion yuan by 2025 and 291 trillion by 2030.
CITIC Securities asserts healthcare’s earnings/valuation recovery is certain but increasingly bifurcated, favoring innovation-driven, globally competitive, and outpatient-focused models.
Looking ahead, Bohai Securities expects structural opportunities to dominate as policies emphasize market resilience and balanced investment/financing functions. TMT (AI+/domestic substitution/computing networks) and year-end fund rebalancing toward coal/banking sectors present potential.
Pacific Securities identifies support levels at 3,070 (ChiNext) and 3,920 (Shanghai Composite), maintaining bullishness if holds. Tech stocks may diverge—narrative-driven names could correct sharply, while earnings-backed segments like memory chips retain upside.
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