A-shares fluctuate and adjust, with significant differentiation in the pharmaceutical sector

On April 2, the A-share market experienced fluctuations and adjustments, with significant differentiation in the pharmaceutical sector, while the Hong Kong stock market's innovative drug sector strengthened against the trend. By the close, the Hang Seng Hong Kong Stock Connect Innovative Drug Index surged 1.4%, leading all market pharmaceutical-related indices; the China Securities Hong Kong Stock Connect Pharmaceutical and Health Comprehensive Index rose 1.0%, the China Securities Innovative Drug Industry Index increased by 0.4%, while the China Securities Biotechnology Theme Index and the CSI 300 Pharmaceutical and Health Index slightly declined. Among them, the Hong Kong Stock Connect Innovative Drug ETF from E Fund (159316, connecting fund A/C: 024328/024329) had a total trading volume of approximately 1.48 billion yuan throughout the day, a slight increase compared to yesterday. From the perspective of index characteristics and compilation logic (data source: Wind, as of April 2, 2026): Hang Seng Hong Kong Stock Connect Innovative Drug Index: Increased by 1.4% on the day, with a rolling price-to-earnings ratio of 54.9 times, published on July 10, 2023. The index focuses on leading innovative drug companies in the Hong Kong stock market, composed of no more than 40 Hong Kong Stock Connect stocks involved in innovative drug research and development and production, gathering cutting-edge innovative drug companies in Hong Kong. China Securities Hong Kong Stock Connect Pharmaceutical and Health Comprehensive Index: Increased by 1.0% on the day, with a rolling price-to-earnings ratio of 45.4 times, with a valuation percentile of 64.0% since its release in 2017. The index focuses on leading companies in the Hong Kong medical and health industry, composed of 50 Hong Kong Stock Connect stocks in medical devices, biopharmaceuticals, etc., covering the entire pharmaceutical industry chain in Hong Kong. China Securities Innovative Drug Industry Index: Increased by 0.4% on the day, with a rolling price-to-earnings ratio of 43.4 times, with a valuation percentile of 52.0% since its release in 2019. The index focuses on leading innovative drug companies in the A-share market, composed of no more than 50 stocks whose main business involves innovative drug research and development, gathering the main force of innovative drugs in the A-share market. China Securities Biotechnology Theme Index: Decreased by 0.2% on the day, with a rolling price-to-earnings ratio of 44.0 times, with a valuation percentile of 31.3% since its release in 2015. The index focuses on leading biotechnology companies in the A-share market, covering sub-sectors such as gene diagnosis and biopharmaceuticals. CSI 300 Pharmaceutical and Health Index: Decreased by 0.4% on the day, with a rolling price-to-earnings ratio of 27.7 times, with a valuation percentile of 24.9% since its release in 2007. The index focuses on leading companies in the A-share pharmaceutical and health industry, covering sub-sectors such as chemical pharmaceuticals, medical services, and medical devices. Guotai Junan Securities pointed out that biomedicine has been positioned as an emerging pillar industry, with policy dividends continuously released, coupled with the explosive growth of innovative drug overseas business development, the industry's fundamentals are accelerating positively. According to WIND data, among the pharmaceutical-themed ETF matrix under E Fund, the Hong Kong Stock Connect Innovative Drug ETF E Fund (159316) is the only ETF tracking this target in the market and is a low-fee product, with a total management fee + custody fee of only 0.2% per year. Risk Warning: Funds have risks, and investment should be cautious