On March 18, Hong Kong Stock Connect innovative drug stocks continued to show active performance. Leading companies such as Akeso, Innovent Biologics, and BeiGene saw collective gains, while Sino Biopharmaceutical, CSPC Pharmaceutical Group, and 3SBio rose more than 2%.

The Hong Kong Stock Connect Innovative Drug ETF (520880), which holds significant positions in innovative drug leaders, fluctuated in positive territory throughout the day, rising over 1% and reclaiming the 20-day moving average. Trading volume exceeded 400 million yuan.

On the news front, the 2026 CMAC Innovative Drug Medicine Conference and Exhibition grandly opened at the Suzhou International Expo Center from March 18 to 20.

The Shanxi Securities pharmaceutical team believes that China's innovative drug sector is currently transitioning from a rally driven by the overseas expansion of major products to a dual-core model. This model combines the commercialization realization of Biotech's major products with the deep integration of Biopharma's R&D platforms and multinational corporations. Business development and collaborative commercialization of Biotech's major products remain the core pathway for Chinese pharmaceutical companies to grow into multinational pharmaceutical enterprises. The deep integration model of Biopharma's R&D platforms serves as a moat for China's innovative drug technology to maintain global leadership.

Looking ahead, the institution pointed out that the subsequent release of clinical data for Akeso's PD-1/VEGF bispecific antibody AK112 in 2026 will continue to catalyze market sentiment. The industry may already be at a bottom, with data from ASCO and innovative drug results in the third quarter continuing to be released. Geopolitical disturbances and liquidity factors have limited impact, and this year is expected to witness a sector-wide rally in innovative drugs, with opportunities in bispecific antibodies, ADCs, small molecules, and platform technologies.

In terms of timing for allocation, Hong Kong-listed pharmaceutical stocks have been adjusting since last September and have now reached a relatively low level, making leading stocks more cost-effective. To capture the rebound opportunity in Hong Kong pharmaceuticals at low levels, consider two key T+0 instruments:

For investing in innovative drugs, consider the Hong Kong Stock Connect Innovative Drug ETF (520880), which fully allocates to innovative drug R&D companies, with the top ten holdings accounting for over 70% of the portfolio, highlighting its focus on industry leaders.

For healthcare investments, consider the Huabao Hong Kong Stock Connect Healthcare ETF (159137), with approximately 70% of its allocation in CXO and AI healthcare, while also covering innovative drugs and medical devices (including brain-computer interfaces). Its top ten holdings include JD Health and AliHealth, among other scarce internet healthcare leaders.

Data source: China Securities Index Company, Shanghai, Shenzhen, and Hong Kong stock exchanges, etc. Institutional views source: Shanxi Securities Pharmaceutical Team, March 17, 2026, "Shanxi Securities Pharmaceutical: Innovative Drug View Update—Dual-Core Drive Bottoming Out and Rising, Sector Rally Expected."

Note: ETF funds do not charge sales service fees. When investors subscribe or redeem fund shares, subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Fund fee rates are detailed in each fund's legal documents.

Risk提示: The index constituents mentioned are for display only. Descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the management company. The risk rating assessed by the fund manager for the Hong Kong Stock Connect Innovative Drug ETF and the Huabao Hong Kong Stock Connect Healthcare ETF is R4—moderately high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any form to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund does not indicate its future performance. Fund investment carries risks.

A MACD golden cross signal has formed, and these stocks are performing well with notable gains.