520880 surged rapidly by 5%! The Stock Connect (for Hong Kong) healthcare sector also rose, with 159137 hitting a high of 4%.
On April 1st, geopolitical tensions showed signs of easing, global markets rebounded, Hong Kong stocks quickly recovered, and healthcare assets once again led the gains! The 100% innovative drug R&D target—Huabao Hong Kong Stock Connect Innovative Drug ETF (520880) surged rapidly to 5%, while the core healthcare asset of Hong Kong stocks—Huabao Hong Kong Stock Connect Healthcare ETF (159137) touched a high of 4%.
The rally in Hong Kong Stock Connect innovative drugs was particularly strong. Lepu Biopharma-B, Insilico Medicine, and RemeGen Co., Ltd. led the gains, rising over 10% together. Heavyweight leaders like Akeso Inc., Innovent Biologics, and CSPC Pharmaceutical Group surged over 5%, while BeiGene soared more than 6%!
Better-than-expected earnings strongly drove the market. So far, 47 constituent stocks of Huabao Hong Kong Stock Connect Innovative Drug ETF (520880) have released their 2025 annual reports, with 28 achieving profitability and 25 reporting double-digit year-on-year net profit growth.
Among them, as many as 10 constituent stocks saw their net profit double or more: Hutchmed's net profit skyrocketed over 11 times year-on-year, Innovent Biologics increased over 9 times, and Biocytogen-B, Sansheng Pharmaceutical, InnoCare Pharma, Sihuan Pharmaceutical, Lepu Biopharma-B, RemeGen Co., Ltd., BeiGene, and CanSino Biologics all reported net profit growth exceeding 100% year-on-year!
Strong earnings verify that innovative drug companies are accelerating into a harvest period. Multiple institutions have highlighted, "Stay firm on the sector's logic and value opportunities in the bottoming zone!" In the secondary market, Hong Kong healthcare stocks have been in a phased adjustment since last September and are still at relatively low levels. To get ahead and position in core Hong Kong healthcare assets, identify these two powerful T+0 tools:
For investing in innovative drugs, look to Huabao Hong Kong Stock Connect Innovative Drug ETF (520880), which allocates 100% to innovative drug R&D companies. The top ten holdings account for over 70%, highlighting its leading stock characteristics.
For investing in healthcare, look to Huabao Hong Kong Stock Connect Healthcare ETF (159137), which allocates about 70% of its portfolio to CXO + AI healthcare, covering both innovative drugs and medical devices (including brain-computer interfaces). Its top ten holdings include scarce internet healthcare leaders like JD Health and AliHealth.
Data source: China Securities Index Co., Ltd., Shanghai, Shenzhen, and Hong Kong Exchanges, etc. Note: ETF funds do not charge sales service fees. When investors subscribe for or redeem fund units, subscription and redemption agents may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges and registration institutions. Please refer to each fund's legal documents for detailed fee information.
Risk Disclosure: The index constituents mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund under the manager. The fund manager assesses the risk rating of Huabao Hong Kong Stock Connect Innovative Drug ETF and Huabao Hong Kong Stock Connect Healthcare ETF as R4 (Medium-High Risk), suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past fund performance is not indicative of future results. Fund investment carries risks.
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