Hantavirus raises concerns, Watson Bio hits the 20cm daily limit, Vaccine ETF China Merchants (561920) surges over 5%!

On May 11, the vaccine sector surged straight up. Walvax Biological hit the 20cm daily limit-up, Hualan Vaccine rose more than 12%, and Wintai Biologics, CanSinoBIO, Sinovac, Zhifei Biological, and Junshi Biosciences-U all rose more than 7%; Vaccine ETF China Merchants (561920) rose 5.22% during the trading session, and the daily K-line was pushing a streak of four consecutive days of gains.

In terms of news, cases related to hantavirus have triggered widespread concern and attention in the market. On May 2, the World Health Organization reported that the Dutch-flagged polar expedition cruise ship “Hondius,” during its voyage across the Atlantic, saw multiple passengers develop severe respiratory symptoms, and was ultimately confirmed to be hantavirus infection. As of May 8, a total of 8 cases had been reported, including 3 deaths. The WHO has now launched an action plan to respond to the hantavirus outbreak.

CITIC Securities stated that the vaccine sector has entered a period of baselining, and that product innovation plus consumption upgrades are expected to kick off a new round of industry growth.

From a medium- to long-term perspective, during the previous growth cycle of major vaccine products, public health awareness and preventive vaccination awareness have improved significantly. Emerging vaccine technologies such as mRNA are also accelerating their maturity. Going forward, potential blockbuster vaccines represented by those for shingles and respiratory syncytial virus (RSV) may inject new vitality into the vaccine sector. China’s vaccine market is also expected to continue expanding as new technologies and new product categories are added, making the future promising.

In addition, demand for high-end vaccines in overseas emerging markets is increasing, and innovative vaccines with international competitiveness are also expected to open up developed-country markets through BD. The internationalization path of domestic vaccine companies is worth paying attention to.

Data shows that Vaccine ETF China Merchants (561920) precisely positions itself in the vaccine race track, tracking the CSI Vaccine and Biotech Index, with heavy holdings in vaccine leaders such as Zhifei Biological, Walvax Biological, and Wintai Biologics. The holdings combine defensive attributes with innovation-driven flexibility. The target index’s year-to-date gain has led other indices in the medical sector, and it may be possible to seize opportunities arising from the sector’s bottoming and subsequent recovery by riding this route.