On June 11th, the A-share and Hong Kong stock markets continued their corrective trend. The Shanghai Composite Index closed down 0.16% at 3987.01 points, while the Hang Seng Index extended its losing streak to seven days. The healthcare theme diverged across the AH markets, with A-share healthcare stocks rebounding against the broader market decline, while Hong Kong Connect healthcare stocks followed the market lower.

Leading Healthcare Stocks Drive Gains for ETF 512170

A rally by leading heavyweights such as Mindray Medical, United Imaging Healthcare, and Aier Eye Hospital Group in the afternoon session helped lift the largest healthcare ETF by size, Healthcare ETF Huabao (512170), into positive territory. It closed up 0.69%, marking consecutive days of gains, with a full-day turnover of 492 million yuan.

It is important to note that the A-share healthcare sector has experienced a sharp decline recently, with ETF 512170 having fallen for eight consecutive days prior, frequently hitting 20-month lows. Investors should be vigilant about risks and avoid blindly attempting to "buy the dip."

Upcoming Index Rebalancing for Key Healthcare ETFs

At the index level, the semi-annual rebalancing for the CSI Healthcare Index, tracked by Healthcare ETF Huabao (512170), will take effect next Monday, June 15th. This adjustment involves three additions and three deletions, keeping the total number of constituent stocks at 50.

Specifically, Wondfo Biotech, Haier Biomedical, and Chaoyan Co., Ltd. are set to be removed. The three proposed additions are leading companies each with market capitalizations in the tens of billions: Zhende Medical (a leading exporter of medical dressings), MicroPort EP MedTech (a leading domestic cardiac electrophysiology device maker), and Dian Diagnostics (a leading medical diagnostic service provider).

Hong Kong Connect Healthcare ETF Sees Heavy Trading Amid Rebalancing

The Hong Kong Connect healthcare sector experienced a dip and subsequent recovery. Hong Kong Connect Healthcare ETF Huabao (159137) fell over 2% intraday before closing down 0.67%, with significantly higher turnover of 47.75 million yuan. AI healthcare and innovative drug concepts were the main drags, with XtalPi and Alibaba Health dropping over 2%, and BeiGene plunging 4.66%.

The semi-annual rebalancing of the underlying Hong Kong Connect Healthcare Theme Index for Hong Kong Connect Healthcare ETF Huabao (159137) warrants close attention. This rebalancing, also effective June 15th, involves a more significant "9 in, 4 out" change to its constituents, which will have a substantial impact on the index. Post-rebalancing, the total number of constituents will return to 50.

Four constituents are slated for removal: Kelun-Biotech, Akeso, Duality Biologics, and Zai Lab.

Nine new constituents are proposed for inclusion: Jiangsu Hengrui Pharmaceuticals, China Medical System Holdings, Simcere Pharmaceutical Group, Grand Pharmaceutical Group, BioMap, United Laboratories International Holdings, Hutchmed, Ascentage Pharma, and Xuanzhu Biopharma.

Notably, the new heavyweight additions include innovative drug leader Jiangsu Hengrui Pharmaceuticals, with a market cap nearing 360 billion HKD. The combined market capitalization of the new additions exceeds 520 billion HKD, poised to add over 300 billion HKD in market cap to the index, further strengthening its concentration of industry leaders.

Strategic Positioning of the Healthcare ETFs

In terms of thematic distribution, the new additions are predominantly leading innovative drug companies. This will further solidify the Hong Kong Connect Healthcare Theme Index's structural layout across "CXO + Innovative Drugs + AI Healthcare + Medical Devices," potentially making it the most comprehensive and representative index for the Hong Kong Connect pharmaceutical sector.

For investors looking to position in core healthcare assets at lower levels, two key instruments are highlighted:

Healthcare ETF (512170) and its corresponding feeder fund (012323): The largest healthcare/pharmaceutical ETF by size in the market, focusing on A-share medical devices (including brain-computer interfaces) and medical services (including CXO), while also covering AI healthcare concepts.

Hong Kong Connect Healthcare ETF Huabao (159137) and its corresponding feeder fund (026922): Features over 40% exposure to CXO, comprehensively covering hot themes like innovative drugs, AI healthcare, and medical devices (including brain-computer interfaces). Its underlying assets are Hong Kong stocks, offering high volatility, and the ETF is eligible for T+0 trading.

All data is sourced from the Shanghai, Shenzhen, and Hong Kong stock exchanges, CSI Index Company, etc. *Note: Among comparable products, Healthcare ETF Huabao (512170) is the largest by size. As of May 31st, 2026, its size was 25.874 billion yuan, ranking first among all pharmaceutical/healthcare ETFs in the market.

Note: The ETF funds mentioned do not charge sales service fees. Please refer to the respective fund legal documents for detailed fee structures.

Risk Disclosure: The index constituents mentioned are for illustrative purposes only. Descriptions of individual stocks are not intended as any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the asset manager. The composition of the underlying index's constituents is adjusted according to its compilation rules. The fund manager assesses the risk rating of the Healthcare ETF Feeder Fund and the Hong Kong Connect Healthcare ETF Huabao as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. The risk rating for the Healthcare ETF is assessed as R3 (Medium Risk), suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund is not indicative of its future results. The performance of other funds managed by the same manager does not guarantee the performance of this fund. Invest in funds with caution.