On the final trading day of September, A-share and Hong Kong pharma stocks surged together to close out the period! A-share pharma and biotech led all sectors, with the underlying indices of the popular on-market healthcare fund Healthcare ETF Huabao (512170) and Pharma ETF Huabao (562050) jumping 2.82% and 2.68% respectively. Hong Kong pharma staged a high-beta advance, with the underlying indices of Hong Kong Stock Connect Innovative Drug ETF Huabao (520880) and Hong Kong Stock Connect Healthcare ETF Huabao (159137) both gaining more than 4% at their intraday peaks and each closing up nearly 3.8%, with 159137 setting a six-month high in exchange closing price! Chart: Hong Kong Stock Connect Healthcare ETF Huabao (159137) performance over the past six months.

On the trading front, AI drug discovery returned to the main theme, with pure-play names and upstream CXO players in the supply chain leading the rally! Joinn Laboratories rose 15.62%, Biocytogen-B gained more than 8%, and GenScript Biotech closed up 8.36% to set another all-time high, with its share price having doubled year-to-date!

On the news front, on September 28, multinational pharmaceutical company Roche announced it had begun building its own AI laboratory and would pursue "AI self-sufficiency" in research and development. Over the past three quarters, 40% of Roche's pipeline decisions have been AI-assisted. On September 23, Anthropic disclosed that Claude autonomously discovered a previously uncharacterized ART enzyme system. Earlier, on September 16, Novo Nordisk partnered with Anthropic to advance ClaudeScience for drug development. Shanxi Securities said that the high importance placed on AI by AI model companies and numerous MNCs fully demonstrates that AI drug discovery is one of the important directions for future AI applications. In the short term, a large number of drug molecules designed through AI models are expected to translate into new orders for upstream service companies; in the medium to long term, AI drug discovery is expected to greatly improve the efficiency and quality of drug research and development.

According to iiMedia Research data, the global AI drug discovery market grew from $790 million in 2021 to $2.41 billion in 2025, and is projected to reach $2.99 billion in 2026, nearly quadrupling within six years. Zhongyan Puhua Industry Research Institute forecasts that the global AI drug discovery market is expected to exceed $46 billion by 2035.

With AI drug discovery riding the wave, how can investors follow the trend? Two T+0 trading tools are worth watching: Hong Kong Stock Connect Healthcare ETF Huabao (159137): its underlying index has nearly 70% AI drug discovery exposure and over 50% CXO exposure. Off-exchange feeder fund: 026922. Hong Kong Stock Connect Innovative Drug ETF Huabao (520880): its underlying index has 100% allocation to innovative drug R&D companies, with 70% of its position betting on innovative drug R&D leaders. Off-exchange feeder fund: 025221.

【Data Source】Public information from the Shanghai, Hong Kong and Shenzhen exchanges, China Securities Index Co., Hang Seng Indexes Company, etc. Weight data as of August 31, 2026. 【Institutional View】Shanxi Securities, September 30, 2026, "Pharmaceutical Industry Dynamic Update - Biomedicine: AI Technology Expected to Drive Rapid Development of the Pharmaceutical Industry, Focus on the AI Drug Discovery Sector." 【Notes on "AI Drug Discovery Exposure" and "CXO Exposure"】The Hong Kong Stock Connect Healthcare Theme Index tracked by Hong Kong Stock Connect Healthcare ETF Huabao covers 17 AI drug discovery-related constituent stocks (including pure AI drug discovery platforms, AI+CRO, and innovative drug companies deploying AI drug discovery), with a combined weight of 69.52%, of which CXO companies account for 55%. 【Fund Fee Rates】ETF funds do not charge sales service fees. When investors subscribe to or redeem fund shares, the subscription and redemption agent broker may charge a commission of no more than 0.5%, which includes related fees charged by the stock exchange, registrar, etc. For fund fee rates, please refer to the legal documents of each fund. 【Special Notice】The risk levels assessed by the fund manager for Hong Kong Stock Connect Healthcare ETF Huabao and its feeder fund, and Hong Kong Stock Connect Innovative Drug ETF Huabao and its feeder fund, are R4 - medium-high risk, suitable for aggressive (C4) and above investors. The risk levels of Healthcare ETF Huabao and Pharma ETF Huabao are R3 - medium risk, suitable for balanced (C3) and above investors. 【Risk Disclosure】The index constituent stocks mentioned in this article are for illustration only; descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. 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, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor shall any responsibility be borne for direct or indirect losses caused by the use of the content of this article. The performance of other funds managed by the fund manager does not guarantee the performance of the fund, and past performance of a fund does not represent its future performance. Fund investment involves risks. MACD golden cross signals have formed, and these stocks are performing well!