Lab monkey prices are surging, igniting interest in the CXO sector! Shares of the "Monkey King" Joinn Laboratories (China) Co.,Ltd. (603127) have been skyrocketing in both the A-share and H-share markets. On July 15th, its A-shares hit the daily limit-up, while its Hong Kong-listed shares closed up 23.78%. The rally continued on the morning of the 16th, with A-shares hitting the limit-up again, marking three limit-up days in five trading sessions, and H-shares rising over 8%. Stock prices in both markets hit three-year highs.

High-CXO content ETFs are also seeing a surge in popularity. The largest healthcare ETF by scale, HuaBao Medical ETF (512170), with nearly 30% CXO exposure, and the HuBao Hong Kong Stock Connect Healthcare ETF (159137), with a high CXO exposure of 48%, both rose over 1% during the trading day.

According to reports, the market price for laboratory monkeys is currently in a general upward trend. The price for suitable 3-5 year old cynomolgus monkeys is generally in the range of over 150,000 to around 200,000 RMB per animal, while the quoted price for a single rhesus monkey is around 120,000 RMB.

Data indicates that the market's overall demand for lab monkeys may exceed 60,000 by 2026, significantly higher than the current supply. Based on the supply-demand gap, the annual supply shortfall for domestic lab monkeys is estimated to be around 10,000 animals.

Benefiting from the revaluation of biological assets driven by soaring lab monkey prices, the "Monkey King" Joinn Laboratories (China) Co.,Ltd. (603127) has forecast its first-half net profit to increase by a maximum of over 13 times, providing strong support for the pharmaceutical sector.

Market analysts suggest that the market may be trading on three main narratives: tight supply of lab monkeys, a recovery in innovative drug R&D, and the revaluation of CRO assets.

Major funds are moving in response, aggressively buying into the pharmaceutical sector recently. In the first three trading days of this week, net inflows into the pharmaceutical and biological sector from main funds reached a substantial 7.36 billion yuan, far exceeding all other industries.

Key Investment Tools for the Medical Rebound

Medical ETF (512170): The largest healthcare/pharmaceutical ETF by scale, focusing on medical devices (including brain-computer interface) + healthcare services (nearly 30% CXO exposure), while also covering AI healthcare concepts. Off-site feeder fund: 012323.

HuBao Hong Kong Stock Connect Healthcare ETF (159137): Heavily weighted in the innovative drug industry chain, with 48% CXO + 20% innovative drugs, also covering AI healthcare and scarce leaders in the medical device (including brain-computer interface) field. Its underlying assets are Hong Kong stocks, offering high volatility and T+0 settlement. Off-site feeder fund: 026922.

Data sourced from Shanghai and Shenzhen Stock Exchanges, CSI Index Company, etc.

Note: The ETF funds mentioned in this article do not charge sales service fees. Fund fee details are available in the respective fund legal documents.

Risk Warning: Index constituents shown are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund managed by the fund manager. 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, the HuBao Hong Kong Stock Connect Healthcare ETF and its feeder fund as R4 - Medium to High Risk, suitable for Aggressive (C4) and above investors. The risk rating for the Medical ETF is R3 - Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) 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 involves risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment should be approached with caution.