According to a research report from CMB International, the MSCI China Healthcare Index has risen 0.6% since the beginning of 2026, outperforming the MSCI China Index by 3.5 percentage points. The healthcare sector has recently experienced a significant correction, particularly in the innovative drug segment. However, following the recent government work report's designation of biopharmaceuticals as an emerging pillar industry, risk appetite in the sector has shown moderate recovery. The institution believes this elevation in policy positioning signifies the healthcare industry's transition from a "strategic emerging industry" to an "emerging pillar industry," indicating that policy benefits will continue to be released across the entire value chain. Concurrently, breakthroughs in AI-driven drug development technology and the surge in overseas business development by Chinese innovative drug companies are creating dual positive momentum. CMB International anticipates an acceleration in the sector's fundamental improvement. The report recommends buying Innovent Bio (01801), 3SBIO (01530), Jacobio-B (01167), Gushengtang (02273), and Wuxi XDC (02268), with target prices of HK$110.62, HK$37.43, HK$10.34, HK$44.95, and HK$88, respectively.