On September 1st, medical stocks in both A-shares and Hong Kong markets bucked the market's downbeat trend, with related products such as Medical ETF Huabao (512170) and HK Stock Connect Medical ETF Huabao (159137) seeing renewed interest. Within the A-share medical segment, performance was mixed, but the medical devices sector showed relative strength, led by Intco Medical which gained 4%, while Mindray Medical rose 2.26% and United Imaging climbed 1.15%. The Medical ETF Huabao (512170) managed to close in positive territory. For the Hong Kong-listed medical sector, there were more decliners than gainers overall, but heavyweight leaders like the WuXi family and GenScript Biotech rallied in tandem, lifting the underlying index of HK Stock Connect Medical ETF Huabao (159137) by 0.73%, ending a four-day losing streak.

Interim earnings reports remain a critical driver for market movements. In the medical devices field, Intco Medical reported double-digit growth in both revenue and net profit for the first half of the year. Mindray Medical's profit decline narrowed significantly to just 5.4%, while United Imaging saw revenue expand by 17% year-on-year. According to a research note from CSC Financial, the medical device industry is now at an earnings recovery inflection point, with net profit attributable to shareholders recording its first positive growth in four years during the second quarter of 2026, signaling a broad stabilization and rebound for the sector.

Turning to Hong Kong-listed CXO companies, all three WuXi giants — WuXi AppTec, WuXi Biologics, and WuXi XDC — reported double-digit revenue growth in the first half. Notably, WuXi AppTec's semi-annual profit surpassed the 10 billion yuan mark for the first time ever. GenScript Biotech saw its baseline revenue increase by 27.3% year-on-year, while adjusted net profit surged 203.3% to $62.52 million. Of particular note, the application of AI for Science (AI4S) in the pharmaceutical sector is poised to transform into a logic for full-chain order growth within the CXO industry, potentially driving a broader re-rating of the sector. China Post Securities pointed out that AI4S is currently at an early stage just before a breakthrough in drug discovery, and is likely to become the next major strategic arena.

For investors looking to ride the medical sector recovery, two key tools stand out. The HK Stock Connect Medical ETF Huabao (159137) offers a CXO concentration exceeding 50% in its underlying index, the highest in the market, with WuXi-related companies comprising over 38%. It also covers niche leaders in innovative drugs, medical devices, internet healthcare, and AI-driven pharmaceuticals. Providing exposure to Hong Kong-listed underlying assets, it offers high volatility and T+0 trading capabilities, with an off-exchange feeder fund available under code 026922. Meanwhile, the Medical ETF Huabao (512170) is a flagship ETF among medical and healthcare funds, with a scale of 25.624 billion yuan as of the second quarter and average daily turnover of 670 million yuan since the start of the year. It focuses on medical devices and medical services, with a CXO content exceeding 30%, while also covering brain-computer interfaces and AI healthcare. Its off-exchange feeder fund is available under code 012323.

Data sources include the Shanghai and Shenzhen Stock Exchanges and the CSI Index Company. Institutional views are referenced from CSC Financial's August 30, 2026 report titled "Medical Device Industry 2026 Mid-Year Summary: Quarterly Earnings Improve Significantly, Focus on Long-Term Opportunities," and China Post Securities' August 27, 2026 report titled "AI4S (Part II): On the Eve of a Breakthrough in Drug Discovery - A New Paradigm Takes Shape, Molecular Validation Demand Rises." None of the ETFs mentioned in this article charge sales service fees; please refer to each fund's legal documents for fee details. As a special note, the risk level for the HK Stock Connect Medical ETF Huabao and its feeder funds is rated R4 (medium-high risk), suitable for aggressive investors (C4) and above, while the Medical ETF Huabao carries a risk rating of R3 (medium risk), suitable for balanced investors (C3) and above.

Risk disclosure: The annual historical returns/annualized volatility for the CSI Medical Index for 2021-2025 were: -14.71%/34.42%, -25.10%/29.45%, -24.25%/18.63%, -17.16%/36.02%, and 3.08%/19.73%, respectively. For the CSI HK Stock Connect Medical Theme Index, the corresponding figures were: -28.26%/38.74%, -15.99%/46.88%, -32.92%/32.96%, -25.08%/44.18%, and 48.20%/32.72%, respectively. Index constituents are adjusted according to index compilation rules over time, and historical backtested performance does not indicate future index returns. The constituent stocks mentioned in this article are for illustrative purposes only and should not be construed as investment advice, nor do they represent the holdings or trading activities of any fund under the management company. All information presented herein—including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any other forms 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, and the authors assume no responsibility for any direct or indirect losses arising from the use of this content. Fund investing carries risks; past performance of a fund does not guarantee future results, and performance of other funds managed by the same management company does not constitute a guarantee of a fund's performance. Please invest cautiously.