On March 17, Hong Kong stocks experienced a volatile trading session with early gains fading, and the healthcare sector was no exception. The Huabao Hong Kong Stock Connect Healthcare ETF (159137), representing core healthcare assets in Hong Kong, initially rose by 3.38% during morning trading but closed with a modest gain of 0.44%, marking consecutive positive sessions. The index was supported by strong performances from CXO and internet healthcare heavyweight stocks. Among them, GenScript Biotech advanced 3.74%, while WuXi AppTec-related stocks all closed higher. JD Health and AliHealth also ended in positive territory, with Ping An Good Doctor rising 2.77%.
Analysts pointed out that the healthcare sector currently offers multiple investment opportunities. The CXO industry continues to benefit from recovering overseas orders and domestic capacity optimization, leading to improved sentiment and attractive valuation upside. The medical device segment is gaining traction due to supportive domestic equipment upgrade policies and overseas market expansion, with emerging fields like brain-computer interfaces and AI imaging providing additional catalysts. Meanwhile, internet healthcare platforms are enhancing operational efficiency and clarifying profit growth trajectories amid ongoing healthcare payment reforms.
In the innovative drug space, performance was mixed. The Hong Kong Stock Connect Innovative Drug ETF (520880), which focuses entirely on innovative drug developers, saw an early surge of nearly 3% but ultimately closed flat. Trading remained highly active, with turnover reaching 515 million yuan. Leading innovative drug stocks showed divergent trends. Sansheng Pharmaceutical led gains throughout the session, climbing over 8% at its peak after its ActRIIA/ActRIIB bispecific antibody SSS67 received FDA approval for clinical trials. In contrast, BeiGene and Sino Biopharmaceutical closed lower.
From an industry perspective, domestic innovative drugs recently presented strong clinical data at academic conferences. Huayuan Pharmaceutical's research team highlighted that IO2.0 (next-generation immuno-oncology therapies) will see further data validation by 2026, reinforcing investment opportunities in this evolving field. The team remains optimistic about the innovative drug sector and advises investors to focus on opportunities during market lows.
In terms of investment timing, Hong Kong healthcare stocks have been adjusting since September last year and are currently trading near阶段性 lows, making leading stocks particularly attractive. Investors looking to position for a rebound in Hong Kong healthcare may consider two key T+0 instruments: For broad healthcare exposure, the Huabao Hong Kong Stock Connect Healthcare ETF (159137) allocates approximately 70% of its portfolio to CXO and AI healthcare, while also covering innovative drugs and medical devices (including brain-computer interfaces). Its top ten holdings include稀缺 internet healthcare leaders like JD Health and AliHealth. For targeted innovative drug exposure, the Hong Kong Stock Connect Innovative Drug ETF (520880) focuses entirely on innovative drug developers, with its top ten holdings accounting for over 70% of the portfolio, highlighting its concentration in industry leaders.
Data sources: China Securities Index Co., Ltd., Shanghai, Shenzhen, and Hong Kong stock exchanges. Institutional views sourced from Huayuan Pharmaceutical's March 16, 2026 report titled "IO2.0 to See Multiple Catalysts; Maintaining Optimism on Sector Logic and Bottom-Fishing Opportunities." Note: ETF funds do not charge sales service fees. When subscribing or redeeming fund shares, brokerage agents may charge a commission of up to 0.5%, which includes fees collected by stock exchanges and registration institutions. Detailed fund fee structures are available in respective legal documents. Risk disclosure: Index constituents are shown for illustrative purposes only. Individual stock descriptions do not constitute investment advice of any form and do not represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk等级 of the Hong Kong Stock Connect Innovative Drug ETF and Huabao Hong Kong Stock Connect Healthcare ETF as R4—medium to high risk, suitable for aggressive (C4) and higher risk-tolerant 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 predictions herein do not constitute investment advice to readers, and no liability is accepted for direct or indirect losses resulting from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of these funds. Past performance is not indicative of future results, and fund investments carry risks.
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