Hong Kong stocks pharmaceutical rebound! Huabao Fund Hong Kong Stock Connect Innovative Drug ETF (520880), Hong Kong Stock Connect Healthcare ETF surged sharply! Blockbuster new drug approval, individual stocks soared 35%

On the morning of March 16, Hong Kong Stock Connect pharmaceutical stocks surged during trading! The entire sector of innovative drugs and medical care warmed up, with 100% of innovative drug development targets—Hong Kong Stock Connect Innovation Drug ETF (520880), and the Hong Kong Stock Connect Medical T+0 tool—Hong Kong Stock Connect Medical ETF Huabao (159137)—rising over 1% underwater, hitting a straight increase of over 1%, with 520880 once surging nearly 2%!

Looking specifically at innovative drug stocks, Changfeng Pharmaceutical surged nearly 36% intraday, Ying’en Bio-B and BaiAo SaiTu-B rose over 5%, and key stocks Kangfang Biotech and CSPC Group jumped over 4%. On the downside, Zhonghui Bio-B fell 12%, leading declines, and Baoji Pharmaceutical-B dropped 5%.

On March 13, Changfeng Pharmaceutical announced that the company’s self-developed inhalation powder mist candidate drug ICF001’s new drug clinical trial (IND) application has been accepted by the National Medical Products Administration (NMPA), marking that the company’s innovative R&D pipeline in high-end respiratory system formulations is accelerating toward harvest.

Fangzheng Securities suggests that it is advisable to increase focus and allocation in innovative drugs now. The innovative drug sector may have already bottomed out temporarily, with policy support, accelerated overseas expansion, profit realization, and clinical catalysts resonating together, offering high cost-performance allocation value.

1. Policy support: Biopharmaceuticals included in the country’s “Six Major Emerging Pillar Industries”, significantly elevating their strategic position;

2. Accelerated overseas expansion: As of Q1 2026, license-out transaction volume approaches nearly half of 2025’s total;

3. Profit realization: Leading companies like BeiGene are officially entering profit cycles, with valuation centers expected to shift from PS to PE, greatly raising overall valuation levels;

4. Clinical catalysts: Heavy academic conferences such as ELCC, AACR, and ASCO in the first half of the year will further demonstrate pipeline clinical value.

Seize the opportunity for leading innovative drug stocks to rebound. Focus on Hong Kong Stock Connect Innovation Drug ETF (520880) and its off-market connection fund (025221), 100% invested in innovative drug R&D companies, with top ten holdings accounting for over 70%, highlighting strong leading attributes.

【Special Reminder on Rebalancing of Hong Kong Stock Connect Innovation Drug ETF (520880)】

On March 9, the Hong Kong Stock Connect Innovation Drug ETF (520880) target index (Hang Seng Hong Kong Stock Connect Innovation Drug Selection Index) rebalanced, with 13 stocks exiting and new ones entering, increasing the total to 50. After rebalancing, the index’s relative advantage is further strengthened:

Updated! Newly added innovative drug targets are incorporated immediately, earlier than most similar indices.

More comprehensive! All 50 innovative drug R&D companies are covered, making it the most comprehensive Hong Kong Stock Connect index for innovative drug R&D companies.

Optimistic about the full industry chain opportunities in innovative drugs, focus on Hong Kong Stock Connect Medical ETF Huabao (159137), with CXO content close to 40%. It also covers hot topics like AI medical care, brain-computer interfaces, high-end medical devices, among others. Of the 50 constituent stocks, 41 are “A-shares with no Hong Kong listing”, representing exclusive featured targets.

Data sources: China Securities Index Co., Ltd., Shanghai-Shenzhen-Hong Kong Exchanges, etc. Institutional views: Fangzheng Medical 20260310 “Latest View on Innovative Drugs: Phase Bottom Confirmed, Fourfold Resonance Catalyzes Reversal [Fangzheng Medical]”

Note: ETF funds do not charge sales service fees. When investors subscribe or redeem fund units, the subscribing or redeeming broker may charge a commission not exceeding 0.5%, which includes related fees from stock exchanges, registries, etc. For detailed fund fee rates, see each fund’s legal documents.

_Risk warning: The index constituent stocks shown are for display only. Stock descriptions are not investment advice and do not represent holdings or trading trends of any fund managed by the manager. The risk level of Hong Kong Stock Connect Innovation Drug ETF and Hong Kong Stock Connect Medical ETF Huabao, as assessed by the fund manager, is R4—medium-high risk, suitable for active investors (C4) and above. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of statements) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice, and the fund manager is not responsible for any direct or indirect losses caused by using this content.** Performance of other funds managed by the fund manager does not guarantee fund performance, past performance does not indicate future results, and investing in funds involves risks.

MACD golden cross signals formed, these stocks are on a good upward trend!