On February 5th, the A-share market opened lower and continued its decline, undergoing a significant correction, while the healthcare sector bucked the trend to trade higher, showcasing its resilience. Major heavyweights within the healthcare sector remained firm; WuXi AppTec rose over 1%, aesthetics leader IMEIK TECHNOLOGY surged more than 4%, Aier Eye Hospital Group gained over 2%, and the largest medical ETF by scale (512170) consolidated near the flat line, frequently trading at a premium in the secondary market. Previously, funds had been accumulating shares at lower levels for 13 consecutive days, resulting in a cumulative net subscription of 2.688 billion yuan. The pharmaceutical sector was mixed; most innovative drug concepts declined, with RemeGen falling over 3%. Traditional Chinese Medicine (TCM) leaders provided strong support, with Tasly Holding Group rising over 4% and the hundred-billion market cap firm Pien Tze Huang gaining over 3%. The market's only exclusive pharmaceutical ETF (562050) traded at a premium and closed in positive territory, having received over 24 million yuan in additional inflows over the preceding 9 days. On the news front, the National Medical Products Administration (NMPA) stated at a national conference on drug registration management and post-market supervision on February 4th, 2026, that during the "15th Five-Year Plan" period, it will vigorously support the innovative development of the biomanufacturing industry. The aim is to propel the pharmaceutical industry's transformation from "follow-on innovation" to "systematic innovation," from "scale-and-speed-driven growth" to "quality-and-efficiency-driven growth," and from "traditional business models" to "digitalized supply chains." Regarding the TCM sector, some analysts are optimistic about a policy-driven valuation recovery and earnings improvement, believing the industry is gradually stabilizing after a deep adjustment. The core logic centers on policy support, cost improvements, anticipated adjustments to the National Reimbursement Drug List (NRDL), and the value of high-dividend allocations. A research report from Zhongtai Securities strategically favors the active pharmaceutical ingredient (API) sector, suggesting that after 4-5 years of price declines and industry consolidation, the API/intermediates industry is poised for price improvements alongside rising commodity and upstream chemical prices. Most API product prices are at historically low levels, with extremely thin profit margins, making further declines unlikely and indicating a clear bottoming-out and stabilization trend. For one-click investment in healthcare leaders, consider the largest medical ETF by scale (512170) and its corresponding feeder fund (012323). It has over 50% weighting in medical devices and over 25% exposure to CXO, covering 12 stocks related to AI healthcare/brain-computer interface themes. For one-click investment in pharmaceutical leaders, consider the market's only pharmaceutical ETF (562050) and its corresponding feeder fund (024986). It allocates over 60% of its holdings to innovative drugs while also including high-dividend TCM stocks, offering potential for gains and resilience, making it a preferred choice for pharmaceutical investment. Data is sourced from the Shanghai and Shenzhen Stock Exchanges, CSI Index Company, etc. ETF constituent weightings are as of January 31, 2026. The Pharmaceutical ETF is the only ETF tracking the pharmaceutical index in the market. As of February 3, 2026, the Medical ETF had a fund size of 27.5 billion yuan, making it the largest among all healthcare/medical ETFs in the market (ranking 1/73). Note: The ETF funds mentioned do not charge sales service fees. Fund fee details are available in the respective legal fund documents. Risk Warning: The index constituents shown are for display 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 management company. The composition of the underlying index constituents is adjusted according to the index compilation rules. The fund manager assesses the risk rating of the Medical ETF feeder fund as R4 - Medium-High Risk, suitable for Aggressive (C4) and higher investors. The Medical ETF and Pharmaceutical ETF are rated R3 - Medium Risk, suitable for Balanced (C3) and higher investors. Any information appearing in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks; past performance of a fund is not indicative of its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest cautiously in funds. MACD golden cross signals have formed, and these stocks are performing well!
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