Healthcare stocks in both A-shares and Hong Kong markets continued their strong rally on August 10, with a focus on the innovative drug contract manufacturing sector. A series of ETFs, including Huabao Hong Kong Stock Connect Medical ETF (159137), Huabao Hong Kong Stock Connect Innovative Drug ETF (520880), Huabao Medical ETF (512170), and Huabao Pharmaceutical ETF (562050), all posted notable gains. The rally was particularly robust in the Hong Kong-listed innovative drug supply chain, where the CXO sector continued its aggressive climb.

Leading the charge, XtalPi Holdings surged 10%, while Genscript Biotech rose over 7%. The heavyweight WuXi family of companies—consisting of WuXi AppTec, WuXi Biologics, and WuXi XDC—collectively gained over 4%. Among them, WuXi AppTec hit a new all-time high, extending its recent record-breaking streak.

On the news front, WuXi AppTec received a significant boost. According to an August 9 announcement, a US court ruled on the company's motion for a preliminary injunction, shielding it from adverse effects related to the 1260H designation during the challenge period. The Huabao Hong Kong Stock Connect Medical ETF (159137), which has nearly half its holdings in CXO stocks, rose another 5% in intraday trading after a 5.5% surge the previous day, reaching a three-month high. Based on the latest PCF list, the ETF's weight in the WuXi family exceeds 38%.

The innovative drug sector also advanced. The Huabao Hong Kong Stock Connect Innovative Drug ETF (520880), which focuses 100% on innovative drug R&D companies, rose over 3% in intraday trading, breaking through the half-year moving average resistance level with a turnover exceeding 2.7 billion yuan. Key stocks such as CSPC Pharmaceutical Group and Akeso gained over 4%, while BeiGene, Innovent Biologics, and Sino Biopharmaceutical collectively rose over 2%.

Interim earnings reports have injected strong momentum into the Hong Kong-listed healthcare sector. The CXO leader's net profit surge verified high industry prosperity, while innovative drug leaders' robust earnings growth confirmed commercial success. In the CXO space, WuXi AppTec exceeded expectations, with its first-half net profit attributable to shareholders surpassing 10 billion yuan for the first time, reaching 11.08 billion yuan, a year-on-year increase of 29.43%. The company also raised its full-year 2026 revenue guidance, with a total maximum revenue range of 60.5 billion yuan, up from the previous 53 billion yuan. On August 6, WuXi Biologics announced the acquisition of Yian Jishou CDMO assets to expand capacity.

In the innovative drug sector, BeiGene continued to demonstrate commercial success, achieving a first-half net profit attributable to shareholders of 3.271 billion yuan, a year-on-year increase of 627.1%. The company also raised its full-year revenue forecast to a range of 44.9 billion to 46.2 billion yuan. Zai Lab reported commercial profitability in its interim results, with second-quarter net product revenue reaching $105.8 million, an 11% quarter-on-quarter increase.

A research report from China Merchants Securities indicated that it continues to be optimistic about the innovative drug industry trend. The sector has transitioned from a previous oversold rebound to a rally driven by fundamentals and industry trends, with the impact of market style and capital rotation gradually diminishing. With the arrival of the interim reporting season and expectations for innovative drug pipeline catalysts, the outlook for the healthcare sector remains positive.

For a full-chain layout in innovative drugs, ETFs offer a more efficient approach. For innovative drug investment, consider the Huabao Hong Kong Stock Connect Innovative Drug ETF (520880), which is T+0 tradable, holds no CXO stocks, and has 100% of its assets in innovative drug R&D companies, with 70% allocated to leading innovative drug R&D firms. For A-share innovative drug opportunities, look at the Huabao Pharmaceutical ETF (562050), the only ETF tracking the pharmaceutical index, with over 72% exposure to innovative drugs. For CXO investment, the Huabao Hong Kong Stock Connect Medical ETF (159137) is T+0 tradable, with over 48% in CXO stocks, including a more than 35% weight in the WuXi family. For A-share CXO opportunities, consider the Huabao Medical ETF (512170), the largest medical ETF in the market, covering eight CXO leaders with a combined weight of nearly 30%.

Data sourced from the Shanghai, Shenzhen, and Hong Kong stock exchanges, CSI Index Company, and Hang Seng Index Company. Fund size and weight data as of July 31, 2026. The Huabao Medical ETF (512170) has a size of 26.045 billion yuan, making it the largest medical ETF in the market. The institutional view is from the China Merchants Securities report dated August 2, 2026, titled "Biopharmaceutical Industry Weekly Report: Interim Reporting Season, Bullish on Healthcare Future, Recommending Innovative Drugs, CXO, Upstream, and Pharmacies."

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Risk Warning: The constituent stocks of the index mentioned in this article are for display purposes only. The description of individual stocks does not constitute any form of investment advice and does not represent the holdings or trading intentions of any fund under the management company. The risk level of the Medical ETF and Pharmaceutical ETF Huabao assessed by the fund management company is R3-moderate risk, suitable for balanced (C3) and above investors. The risk level of the Hong Kong Stock Connect Medical ETF Huabao and Hong Kong Stock Connect Innovative Drug ETF Huabao is R4-moderate to high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any investment decisions they make on their own. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers in any form, nor are they responsible for any direct or indirect losses caused by the use of the content in this article. The performance of other funds managed by the fund management company does not constitute a guarantee of the fund's performance. The past performance of a fund does not represent its future performance. Fund investment carries risks.