On February 11, the Hong Kong healthcare sector displayed mixed performance. Innovative drug stocks saw broad-based pullbacks, with the HK Stock Connect Innovative Drug ETF (520880), which maintains 100% purity in innovative drug exposure, edging down 0.19% to end a three-day winning streak. In contrast, the medical theme segment continued its upward trajectory, as the Huabao HK Stock Connect Medical ETF (159137) advanced for the fourth consecutive session, climbing above its 20-day moving average.

Constituents of the Huabao HK Stock Connect Medical ETF (159137) were split between gains and declines. "Domestic invisible orthodontics leader" Angelalign Technology led the gains throughout the session, surging up to 8% at one point during early trading to hit a new high in over a year! Partial activity was seen in the innovative drug industrial chain, with heavyweight stock Wuxi Biologics rising 3.45%. AI healthcare heavyweight leader JD Health and brain-computer interface concept stock Neural Technologies-B both gained over 1%.

Reviewing recent trends in the Hong Kong healthcare sector, a significant recovery trend is evident. Considering the substantial adjustments over the past nearly two quarters, the current position offers attractive allocation value. Southwest Securities suggested continuously monitoring low-position innovative drugs, brain-computer interfaces, and AI healthcare. *Kaiyuan Securities also noted that the valuation appeal of leading Hong Kong-listed healthcare companies has become pronounced recently, recommending heightened focus at this time.*

Furthermore, the latest research report from CICC pointed out that Hong Kong stocks have a "tradition" of sudden surges during holidays, with the Hang Seng Index averaging a 2% gain during the Spring Festival period since 2021. The unique structural scarcity and attractiveness of the Hong Kong market are even more critical; if catalyzed at the industrial level, Hong Kong stocks might have opportunities to outperform A-shares.

It is worth mentioning that the Hong Kong medical theme sector hosts numerous targets relatively scarce in the A-share market. Taking the HK Stock Connect Medical Theme Index, tracked by the Huabao HK Stock Connect Medical ETF (159137), as an example, 41 out of its 50 constituents are exclusive "Hong Kong-only, A-share absent" distinctive targets. These include scarce AI healthcare leaders such as JD Health, AliHealth, and Ping An Good Doctor, as well as rare brain-computer interface leaders like Neural Technologies-B and MicroPort NeuroTech.

Accumulating core healthcare assets at low levels can be done more efficiently via ETFs, offering high flexibility and T+0 settlement.

For investing in healthcare, consider the Huabao HK Stock Connect Medical ETF (159137), which anchors medical innovation and encompasses hot themes like AI healthcare, brain-computer interfaces, and online pharmacies, while also covering leaders across the entire innovative drug industrial chain.

For investing in innovative drugs, identify the HK Stock Connect Innovative Drug ETF (520880) and its off-site feeder fund (025221), which provides 100% exposure to innovative drug R&D companies. The top ten holdings account for over 73% of the portfolio, highlighting its strong leader concentration.

Data source: China Securities Index Co., Ltd., Shanghai, Shenzhen, and Hong Kong Exchanges, etc. Institutional views sourced from: Southwest Securities report dated February 7, 2026, "Healthcare Industry Weekly: Continue Monitoring Low-Position Innovative Drugs, Brain-Computer Interfaces, AI Healthcare"; Kaiyuan Securities report dated February 8, 2026, "Accelerated Overseas Expansion Coupled with Commercialization Realization, Innovative Drug Industry Continues Upward Trend"; CICC report dated February 11, 2026, "Overseas China Stock Strategy Report: Has the Pullback Run Its Course?".

Note: ETF funds do not charge sales service fees. When investors subscribe for or redeem fund shares, subscription/redemption agent brokerages may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges, registration institutions, etc. The Huabao Hang Seng HK Stock Connect Innovative Drug Selection ETF Feeder Fund C Share Class does not charge a subscription fee; the redemption fee is 1.50% within 7 days, and 0.00% for 7 days (inclusive) or more; the sales service fee is 0.20% per annum.

Risk提示: The HK Stock Connect Innovative Drug ETF and its feeder fund passively track the Hang Seng HK Stock Connect Innovative Drug Selection Index. The base date for this index is December 31, 2020, and its release date is July 17, 2023. The Huabao HK Stock Connect Medical ETF (159137) passively tracks the CSI HK Stock Connect Medical Theme Index. The base date for this index is December 31, 2018, and its release date is July 21, 2022. Individual stocks mentioned herein are listed solely for the objective illustration of index constituents and do not constitute recommendations for any specific stock, nor do they represent the investment direction of the fund manager. Any information appearing in this document (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or predictions herein do not constitute investment advice of any form to the reader, and the company assumes no liability for any direct or indirect losses arising from the use of this content. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other fund legal documents to understand the fund's risk-return characteristics and select products that match their own risk tolerance. The past performance of a fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Based on the fund manager's assessment, the risk rating of the ETFs mentioned herein is R4 - Medium-High Risk, suitable for Aggressive (C4) and above investors. Suitability matching opinions are subject to the sales institution. Sales institutions (including the fund manager's direct sales channels and other sales institutions) assess the risk of the above funds according to relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from various sales institutions may not necessarily be consistent, and the risk rating evaluation results for fund products issued by fund sales institutions shall not be lower than the risk rating evaluation results made by the fund manager. The description of fund risk-return characteristics in the fund contract and the fund's risk rating may differ due to different consideration factors. Investors should understand the risk-return profile of the fund and make prudent choices based on their investment objectives, horizon, experience, and risk tolerance, bearing the associated risks independently. The China Securities Regulatory Commission's registration of the above funds does not indicate a substantive judgment or guarantee of their investment value, market prospects, or returns. Fund investment involves risks.

A MACD golden cross signal has formed, and these stocks are performing well!