On December 17, A-shares and Hong Kong stocks staged a coordinated afternoon rebound, with the Shanghai Composite rising 1.19% and the Hang Seng Index gaining 0.92%. A+H healthcare assets followed the market recovery, as the largest medical ETF (512170) and the sole pharmaceutical ETF (562050) both surged over 1%, while Hong Kong Connect innovative pharma ETFs (520880) also closed in positive territory.
【A-share Pharma Broadly Rises: Meinian Health Hits Limit-Up, Medical ETF Forms Bullish Engulfing】 The A-share healthcare sector rallied in the afternoon, with private hospitals, CXOs, and AI-medicine themes leading the charge. Meinian Health surged by the daily limit, while Zhaoyan New Drug and Winning Health gained over 7%.
The largest medical ETF (512170) initially touched a 5-month low but ultimately rose 1.48%, with intraday volatility exceeding 2% and turnover hitting 421 million yuan. Notably, over 100 million yuan flowed into the ETF during the previous two days of declines.
Technical indicators flashed a potential trend reversal signal—today's bullish engulfing candlestick pattern at recent lows suggests dominant short-term bullish momentum.
【Pharma ETF (562050) Joins Rally with 1.19% Gain】 The pharmaceutical sector simultaneously rebounded, with the Pharma ETF (562050) jumping 1.19%. Contributions came from innovative drug and traditional Chinese medicine (TCM) stocks, including Darentang and Chuanning Biotechnology (both up over 2%), while heavyweight Hengrui Pharmaceuticals rose 1.94%.
As the only ETF tracking the CSI Pharmaceutical Index, Pharma ETF (562050) allocates ~25% to stable high-dividend TCM stocks, which help mitigate the volatility of innovative pharma holdings.
【HK Connect Innovative Pharma ETF (520880) Sees Strong Inflows】 The long-dormant HK Connect innovative pharma sector finally rebounded, with ETF 520880 closing higher. Component stocks were mixed: Everest Medicines surged 6.79%, Fosun Pharma fell 2.37%, while key holdings like Akeso and BeiGene posted modest gains.
Notably, the sector's valuation may have bottomed, attracting sustained inflows. As of December 16, 520880 recorded seven consecutive days of net subscriptions, with fund units hitting a record 4.172 billion.
【Analysts: AH Healthcare Assets Enter Favorable Allocation Window】 After a three-month correction since September, A+H healthcare sectors—particularly innovative pharma—have seen risk fully priced in, while medical valuations compressed further. Analysts suggest this may present a strategic entry point.
Key sector developments: 1) Innovative Pharma: Global expansion advances. Hengrui's partner Kailera registered three Phase 3 trials for GLP-1/GIP agonists; Harbour BioMed secured a $90M upfront deal with Bristol-Myers Squibb; Yipinhong's gout drug fetched $950M in overseas M&A. 2) CXOs: Clear recovery signs. Quarterly financing data, orders, and earnings show sequential improvement, with domestic CROs experiencing volume-price growth. Firms like JOINN Lab and Zhaoyan anticipate accelerated Q4 order growth. 3) MedTech: Acotec signed a partnership with Boston Scientific. Global pharma giants are increasing focus on Chinese innovative devices, with sector valuations resembling pre-rally 2022 HK innovative pharma levels. This segment also benefits directly from healthcare IT/AI adoption.
520880's fund manager Feng Chencheng maintains balanced sector allocation, noting 2026 innovative pharma trends remain intact post-correction, while suggesting gradual exposure to recovering TCM and medtech segments.
Risk Disclosure: Market volatility remains elevated. Investors should align decisions with personal risk tolerance. All mentioned ETFs track respective indices (CSI Medical since 2004.12.31, CSI Pharma since 2011.12.30, Hang Seng HK Connect Innovative Pharma Select since 2020.12.31). Component stock mentions aren't investment advice or portfolio position disclosures. Fund risk ratings vary from R3 (moderate) to R4 (high). Past performance doesn't guarantee future results.
Comments