ETF Selection | The three major indices fluctuate and weaken, while ETFs in banking, healthcare, and gold rise against the trend

Ask AI · Why is China’s innovative drug BD overseas growth accelerating so dramatically?

On March 31, 2026, China’s A-share market traded with choppy weakness throughout the day, and all three major indexes closed lower together. By the close, the Shanghai Composite fell 0.80%, the Shenzhen Component dropped 1.81%, and the ChiNext Index fell 2.70%.

In terms of themes, sectors such as auto services, aerospace equipment, and construction machinery led the gains, while sectors including coal, wind power, and batteries led the declines. On the main fund flows, industry concepts such as consumer electronics, advertising and marketing, and precious metals ranked among the top inflows.

As for ETFs, possibly driven by related news, ETFs related to banking, pharmaceuticals, and gold saw outstanding performance!

[All Six Major Banks Achieved “Double Growth” in Revenue and Net Profit; Institutions: Long Term, Listed Banks’ Performance Is Steady]

In the news, as of March 30, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China released their 2025 “report cards.” During the reporting period, all six major banks achieved “double growth” in revenue and net profit, totaling about 1.42 trillion yuan in net earnings, and many banks’ core operating indicators improved quarter by quarter.

Guolian Minsheng Securities said that, over the long term, the performance of listed banks remains steady, and it expects the banking sector to generate long-term excess returns. Over the medium term, amid increased economic uncertainty due to external shocks, market style may shift toward risk aversion, and the banking sector’s returns are expected to revert.

Related ETFs: Bank ETF Tianhong (515290), Bank ETF Bosh i (159253), Bank ETF Southern (512700), Bank ETF Huaan (516210), Bank ETF Huabao (512800)

[BD Total Transaction Value for the First Three Months Exceeded $60 Billion; Institutions: China’s Innovative Drugs’ Long-Duration Period Starts Here]

In the news, as of March 27, 2026, 10 innovative drugs had been approved, of which domestically developed innovative drugs accounted for 8. In the first three months of this year, China’s innovative drug overseas licensing (BD) transaction value broke through $60 billion, coming close to about half of the total $135.7 billion for all of 2025.

Caitong Securities said that this is the starting point of China’s innovative drugs’ long-duration competitive cycle: exporting high-quality assets globally, while potential is not yet fully reflected in A/H-share pricing. The number and value of China’s innovative drug BD overseas transactions hit record highs, and the global share has increased significantly. The expectation that BD will continue growing with steady momentum is relatively highly predictable, and differences in expectations about how densely concentrated catalysts will contribute to BD cash flow continuity remain large.

Related ETFs: Biopharmaceutical ETF Huaan (159508), Biopharmaceutical ETF Haitong (159839), Innovative Drug ETF F uji (159748), Hong Kong Stock Innovative Drug ETF Invesco (513780), Innovative Drug ETF E F u (516080)

[Institution: Still Optimistic About Gold’s Safe-Haven Logic in the Medium and Long Term]

In the news, spot gold continues to trade with consolidation and a rebound, and it once broke above $4,600 per ounce intraday. As of 15:17, gold was quoted at $4,587.6 per ounce, up 0.67%.

Caitong Securities believes that although gold is under short-term pressure, it still looks favorably at gold’s safe-haven logic over the medium and long term. Gold’s short-term trend will depend heavily on the continued duration of the Strait of Hormuz blockade and the progress of global liquidity repair. Over the medium and long term, de-dollarization and the unsustainability of fiscal policy will continue to support gold’s allocation value, and gold’s pricing logic will shift toward hedging credit risk and reallocating assets.

Related ETFs: Gold ETF ICBC (518660), Gold ETF Qianhai Open-Source (159812), Gold ETF Xia (518850), Gold ETF Cathay (518800), Gold ETF Huaan (518880)