Highly resilient! The pharmaceutical sector defies the market trend with gains, and the only on-market drug ETF (562050) recovers the half-year moving average! San Sheng Guo Jian's performance explodes, with the stock soaring 14% to a new high.

On the afternoon of April 2nd, the A-shares accelerated their decline, with the Shanghai Composite falling more than 1%. The pharmaceutical sector defied the trend with a rally, demonstrating resilience! The only market-wide indicator of the pharmaceutical sector’s overall performance, Huabao Pharma ETF (562050), surged over 1% intraday, reclaiming the half-year line against the trend!

In terms of constituent stocks, the leading innovative drug company Sino Biopharmaceutical soared over 14%, hitting a new high! Boryung Pharmaceutical rose over 7%, and several traditional Chinese medicine stocks like Yunnan Baiyao and Jichuan Pharmaceutical increased by 2% against the trend. On the downside, Chuaning Biological, Kanghong Pharmaceutical, and Dize Medicine-U led the declines.

News-wise, Sino Biopharmaceutical disclosed its 2025 annual report, revealing that the company will achieve operating revenue of 4.2 billion yuan in 2025, a year-on-year increase of 252.63%; net profit attributable to shareholders of the parent company will reach 2.9 billion yuan, up 311.5% year-on-year; non-recurring net profit is 2.77 billion yuan, a year-on-year increase of 1025%.

Overall statistics show that among the 28 constituent stocks of Huabao Pharma ETF (562050) that disclosed full-year 2025 results, 23 companies were profitable, 16 had positive net profit growth year-on-year, with Sino Biopharmaceutical and Rongchang Biotech leading in net profit growth, at 311% and 148%, respectively.

One-click layout of “Innovative Drugs + Traditional Chinese Medicine”, focusing on the only pharmaceutical ETF Huabao (562050) and its off-exchange connect fund (024986), gathers the top 50 leading pharmaceutical companies in A-shares. While heavily weighted in innovative drugs, approximately 25% of the holdings are in traditional Chinese medicine. The TCM sector offers relatively high dividend yields and tends to be more stable, which can partially hedge the high volatility of innovative drugs, reducing overall index volatility and drawdowns.

Data sources: Shanghai and Shenzhen Stock Exchanges, China Securities Index Co.

Note: All ETF funds mentioned in the article do not charge sales service fees. Fund fee rates are detailed in each fund’s legal documents.

Risk reminder: The pharmaceutical ETF and its linked funds passively track the CSI Pharmaceutical Index, which was established on December 30, 2011, and published on July 15, 2013. The index’s constituent stocks are adjusted periodically according to the index’s rules. Its backtested historical performance does not predict future performance. The index components shown here are for display only; individual stock descriptions are not investment advice and do not reflect holdings or trading activity of any fund managed by the manager. The risk level of the pharmaceutical ETF and its linked funds, as assessed by the fund manager, is R3—medium risk, suitable for balanced (C3) and above investors. Suitability matching opinions are subject to the sales institution. Any information presented herein (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of statement) is for reference only; investors are responsible for their own investment decisions. Furthermore, any viewpoints, analyses, or forecasts in this article do not constitute investment advice and the author is not responsible for any direct or indirect losses resulting from the use of this content. Fund investments carry risks, and past performance does not guarantee future results; the performance of other funds managed by the fund manager does not guarantee the performance of the fund itself. Investors should exercise caution.

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