On August 13, the A-share and Hong Kong healthcare sectors staged a rapid rebound, with CXO (Contract Research Organization) leaders continuing to demonstrate strength. WuXi Apptec (02359.HK) and Wuxi Apptec Co.,Ltd. (603259.SH) both rose over 1% in their respective markets, while Concho Resources-related stocks, including Kanglong Huacheng, saw gains of over 4% in both A-shares and H-shares. In the A-share market, Shanghai Haoyuan Chemexpress Co.,Ltd. (688131.SH) surged more than 7%.

Exchange-traded funds (ETFs) with high CXO exposure also strengthened in line with the market. The Hong Kong Stock Connect Healthcare ETF (159137), which has a CXO content exceeding 50%, rose over 1%. Meanwhile, the largest healthcare ETF by market scale in China, the Medical ETF (512170), with a CXO content of over 30%, gained more than 2% during intraday trading, aiming for a fifth consecutive day of gains, with trading volume exceeding 4.5 billion yuan.

On the news front, on August 12, Shanghai Haoyuan Chemexpress Co.,Ltd. announced that its wholly-owned subsidiary, Yaoyuan Bio-Technology (Qidong) Co., Ltd., passed the U.S. Food and Drug Administration (FDA) inspection for the first time. This is expected to help the company expand into the U.S. market and have a positive impact on its operating performance and international competitiveness.

From an industry perspective, the CXO sector remains in high demand. Leading companies such as WuXi Apptec and Kanglong Huacheng continue to see positive order expectations, supported by a marginal recovery in the financing environment for overseas biotech firms. Additionally, ongoing biotechnology and drug (BD) transactions in China's innovative drug sector are driving the recovery of research and development outsourcing demand. Furthermore, companies like Genscript are making technological breakthroughs in AI-driven drug development, further strengthening the long-term trend of AI integration in life sciences.

Notably, public mutual funds are seeking new structural opportunities, with the healthcare and biotech sector becoming a key focus. From August 3 to 9, mutual fund institutions conducted 104 research visits to the healthcare and biotech industry, surpassing the attention previously given to the electronics sector. Industry insiders suggest that sub-sectors such as innovative drugs and CXO, benefiting from improving industry trends, higher earnings expectations, and room for valuation recovery, are gradually attracting capital inflows.

Follow the healthcare rebound with two key tools:

The Hong Kong Stock Connect Healthcare ETF (159137) has a CXO content of 51.88%, with the WuXi system accounting for over 38% of its weight. It also has exposure to AI healthcare concepts. The underlying assets are Hong Kong-listed stocks, offering high elasticity and T+0 trading. The off-exchange linked fund is 026922.

The Medical ETF (512170) is the largest healthcare and medical ETF by market scale, with a CXO content of 32.82%, including a 13.42% weight for Wuxi Apptec Co.,Ltd. (603259.SH). It also has exposure to AI healthcare concepts. The off-exchange linked fund is 012323.

Data sourced from the Shanghai and Shenzhen Stock Exchanges, CSI Index Company, and others. Institutional viewpoint: CITIC Securities, August 2026, "AI Drug Development and Medical Commercialization Acceleration."

Note: The ETFs mentioned in this article do not charge sales service fees. Fund fee rates are detailed in the respective fund legal documents.

Risk warning: The constituent stocks of the indices mentioned are for display purposes only. Descriptions of individual stocks do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund managed by the fund manager. The composition of the index's constituent stocks is adjusted according to the index's compilation rules. The fund manager assesses the risk level of the Hong Kong Stock Connect Healthcare ETF, Medical ETF linked funds, and Hong Kong Stock Connect Innovative Drug ETF as R4 (medium-high risk), suitable for aggressive (C4) and above investors. The risk level of the Medical ETF is R3 (medium risk), suitable for balanced (C3) and above investors. Any information provided 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 must be responsible for their own investment decisions. Additionally, any views, analyses, or forecasts in this article do not constitute investment advice to readers, and the author assumes no responsibility for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not guarantee future results. The performance of other funds managed by the same fund manager does not constitute a guarantee of the fund's performance. Fund investment should be approached with caution. MACD golden cross signals have formed, and these stocks are showing strong momentum!