Healthcare Sector surged on August 13, leading the afternoon session across the entire market. Despite a late-session selloff in A-shares, the healthcare sector held firm in positive territory, demonstrating resilience. By the close, the Healthcare and Biotech industry posted a 1.13% gain, with net capital inflows reaching 116.33 billion yuan, capturing the top spot in both categories among the 31 Shenwan primary industries. The largest medical ETF by market size, HuaBao Medical ETF (512170), hit an intraday high of 2.86% and saw its market price reach a six-month peak, closing up 1.43% for a five-day winning streak. The ETF experienced a 4% daily price swing, with trading volume expanding to 8.98 billion yuan. Key contributors were Medical Equipment and CRO (Contract Research Organization) components. MGI Tech, in collaboration with RainSure to launch a single-cell full-process automation solution, surged 9.97% to lead the sector. The CRO segment continued its strong performance, with WuXi AppTec rising 2.07% further, boasting over 100 billion yuan in trading volume for eight consecutive days. Pharmaron and Tigermed both gained over 3%, while Zhejiang Jiuzhou Pharmaceutical climbed 8.5%. As the market recovery strengthens, institutional attention on healthcare and medical sectors has rapidly increased. Last week (August 3-9), public fund institutions conducted 104 research visits to the healthcare and biotech industry, ranking first across all industries, surpassing the previously popular electronics sector.

Assessing the sustainability of this rebound, aggregated institutional views suggest that the emotional bottom for the CRO industry may have already been established. A potential earnings inflection point is emerging, paving the way for a valuation recovery phase. Caithong Securities notes that the underlying logic for this CRO revival is a two-way resonance in R&D demand both domestically and internationally. Overseas pharmaceutical companies are seeing a recovery in R&D budgets, while domestic firms are executing new drug out-licensing deals, gradually restoring investment financing. This is driving a rebound in biotech R&D demand. Furthermore, the accelerating role of AI in the industry is becoming apparent, with the AI drug discovery chain beginning to enter a positive feedback loop. The model of AI-driven drug design, moving from accelerated design to wet-lab validation and then feeding experimental data back into AI models, is taking initial shape. A commercial closed-loop is likely to form, benefiting upstream suppliers in areas like protein synthesis, protein reagent provision, and preclinical CRO services first, with potential impacts on earnings.

CROs are leading the healthcare counterattack. To easily follow the trend, consider two key tools: HuaBao Medical ETF (512170), the largest medical and healthcare-themed ETF by market size, focusing on medical devices and medical services, with a secondary focus on AI healthcare. It currently holds 32.82% in CROs, with WuXi AppTec (A-shares) comprising 13.42%. The over-the-counter feeder fund code is 012323. HuaBao Hong Kong Stock Connect Medical ETF (159137) is heavily weighted in the innovative drug supply chain, with a CRO exposure exceeding 50%. Of this, the WuXi group accounts for over 38%. The fund also covers JD Health, providing exposure to internet healthcare and scarce leaders in the AI drug development space. The underlying assets are Hong Kong-listed shares, offering high elasticity and a T+0 trading mechanism. The OTC feeder fund code is 026922.

Data sourced from the Shanghai and Shenzhen stock exchanges, the CSI Index Company, etc. Institutional views are from Caithong Securities (2026-08-11) report: "Healthcare Biotech Weekly 32W2026: Strong Demand for New Molecules, CRO Sentiment Warming." Note: The ETFs mentioned in this article do not charge sales service fees. Fund fee rates are detailed in each fund's legal documents. Risk Warning: The constituent stocks in the index 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 intentions of any fund under the management company. The composition of the underlying index constituents is adjusted according to the index compilation rules. The risk rating for HuaBao Hong Kong Stock Connect Medical ETF and its feeder fund, as well as HuaBao Hong Kong Stock Connect Innovative Drug ETF, is assessed as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. The risk rating for HuaBao Medical ETF (512170) is R3 (Medium Risk), suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, or any form of expression) is for reference only. Investors must take full responsibility for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers, nor shall we be liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not represent 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.