On July 31, A-share medical stocks opened lower but climbed higher, with the largest medical ETF in the market, Huabao Medical ETF (512170), reaching a high of 1.54% and breaking through the 250-day moving average for the third consecutive trading day. Component stocks showed mixed performance, with AI healthcare concepts leading the gains. Dian Diagnostics, Jiuan Medical, and Yirui Technology all surged over 7%. CXO leaders collectively rebounded, with Kailaiying rising over 6% and Boteng Shares gaining over 5%, while heavyweight WuXi AppTec climbed nearly 3%. Medical device stocks pulled back, with Mindray Medical and United Imaging Medical falling over 1%.

Hong Kong stock connect medical ETFs also strengthened, with the T+0-tradable Huabao HK Medical ETF (159137) rising over 1.5%. Component stocks such as Jingtai Holdings, Zhaoyan New Drug, and MicroPort Scientific-B gained over 4%, leading the rally. Northeast Securities believes that the current domestic and international biopharmaceutical investment and financing environment is steadily recovering, with a significant increase in domestic innovative drug financing. Policy support is diversely aiding the innovative drug industry, and the CXO sector may be entering a new upward cycle. The firm holds a firm bullish view on medium-to-long-term investment opportunities in CXO.

Regarding AI healthcare, Northeast Securities notes that the sector has entered a new phase of commercialization, revenue growth, and efficiency improvement. Commercialization across various tracks is clearly stratified, with industry inflection points potentially approaching. According to Shuoyuan Consulting's "2026 China AI+Healthcare Application Development Report," the Chinese AI+healthcare market is expected to surpass 150 billion yuan by 2026, with a compound annual growth rate exceeding 30%.

From an investment timing perspective, current A-share and Hong Kong stock medical prices and valuations remain at historically low levels, highlighting investment value. Recommended tools for investment include two key instruments: Medical ETF (512170): the largest medical and pharmaceutical ETF in the market, focusing on medical devices (including brain-computer interfaces) and medical services (with CXO content near 30%), also covering AI healthcare concepts. The over-the-counter feeder fund is 012323. Huabao HK Medical ETF (159137): heavily weighted in the innovative drug chain, with 48% CXO and 20% innovative drugs, also covering AI healthcare, medical devices (including brain-computer interfaces), and other scarce leaders in the field. The underlying assets are Hong Kong stocks, offering high elasticity and T+0 trading. The over-the-counter feeder fund is 026922.

Data is sourced from the Shanghai and Shenzhen Stock Exchanges, the CSI Index Company, etc., with weight data as of June 30, 2026. Institutional views: Northeast Securities' July 27, 2026 report "Northeast Medical & Health Weekly: Continue to be Bullish on Innovative Drugs and Devices as Medium-to-Long-Term Themes, AI Healthcare Has Entered the Value Realization Window." Tianfeng Medical Yang Song team's July 28, 2026 report "Current Position Suggests Focusing on Four Directions: Brain-Computer Interfaces, AI Healthcare, Medical Technology, Innovation Outbound, and Prosperity." Note: The ETFs mentioned in the article do not charge sales service fees. Fund fee rates are detailed in respective fund legal documents.

Risk disclaimer: The index component stocks shown are for display purposes only, and individual stock descriptions do not constitute any form of investment advice, nor do they represent the holdings or trading trends of any fund managed by the fund manager. The composition of the target index's component stocks is adjusted according to the index compilation rules. The Huabao Hong Kong Stock Connect Medical ETF and Huabao Medical ETF Feeder Fund are rated as R4-medium-to-high risk, suitable for aggressive (C4) and above investors. The Huabao Medical ETF is rated as R3-medium risk, suitable for balanced (C3) and above investors. Any information appearing 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 independent investment decisions. Additionally, any views, analyses, or forecasts in this article do not constitute investment advice to readers, nor are they responsible for any direct or indirect losses arising from the use of this content. Fund investment carries risks, and past performance of a fund does not guarantee future results. The performance of other funds managed by the fund manager does not constitute a guarantee of a fund's performance; fund investment should be cautious. MACD golden cross signals have formed, and these stocks are showing strong upward trends!