E Fund Biopharmaceutical ETF (03186) saw an intraday increase exceeding 3%. As of the latest update, it is up 2.34%, trading at HK$14.87, with a turnover of HK$305,000.

Key Market Drivers

On July 9th, the National Health Commission held a press conference to officially release the "National Essential Medicines List (2026 Edition)" (referred to as the "List"), jointly issued by three government departments. The new edition includes a total of 794 drugs, comprising 476 chemical drugs and biological products, and 318 proprietary Chinese medicines. It adds 116 new drugs and removes 2 chemical drugs. The new List will take effect on September 1, 2026.

Huang Xinyu, Director of the Medical Service Management Department at the National Healthcare Security Administration, stated that the implementation of the commercial health insurance innovative drug list is progressing as expected. By the end of May this year, drugs on the list had been made available at 1,486 designated medical institutions nationwide, more than doubling since the beginning of the year. Over 100 inclusive insurance products have incorporated these innovative drugs from the commercial insurance list into their coverage. All supporting policies have been successfully implemented.

Analyst Perspective

Huafu Securities noted that with the rapid recovery in financing amounts and project numbers, domestic demand for CXO (Contract Research Organization) services has already seen explosive order growth. Among these, the recovery in pre-clinical CRO orders has been particularly significant. As previously low-priced contracts are gradually digested, the strong influx of new orders is expected to translate into a clear inflection point for both revenue and profit in the sector by 2026.