Hong Kong stock healthcare surges strongly, Huabao Fund Hong Kong Stock Connect Healthcare ETF (159137) shoots up 2%! Institutions: Bullish on innovation, going global, and AI healthcare new directions

On the morning of March 17, the Hong Kong Stock Connect healthcare sector surged during trading. The Huabao (159137) Healthcare ETF continued to rise strongly by 2%! Among the constituent stocks, San Sheng Pharmaceutical led with an increase of over 5%, while Genescript Biotech, Jing Tai Holdings, WuXi AppTec, and others gained more than 4%, ranking among the top gainers.

Tianfeng Securities pointed out that, in terms of valuation, the Hong Kong healthcare industry’s price-to-earnings ratio percentile is only 11.84%, making it one of the industries with the lowest current valuations; its price-to-book ratio percentile is 72.87%, within the historical median range.

CITIC Construction Investment stated that within the Hong Kong Stock Connect healthcare sector, some companies in the medical devices and services field have surged due to AI-related business developments and catalysts. They remain optimistic about the prospects and investment opportunities in the surgical robot sector. It is recommended to increase allocations to the medical device sector by 2026, with main investment opportunities stemming from performance recovery, innovation, globalization, mergers and acquisitions, and new technological directions such as surgical robots, brain-computer interfaces, and AI medical care. In the pharmaceutical industry chain, companies like Hengrui Medicine, China Biological Products, and Kangfang Biotech have made new progress in their pipelines. The industry is rapidly developing under the three drivers of technological breakthroughs, accelerated internationalization, and policy support.

The Hong Kong Stock Connect Healthcare ETF Huabao (159137) passively tracks the Hong Kong Stock Connect Healthcare Theme Index. The top ten holdings by weight are WuXi Biologics, JD Health, WuXi AppTec, Alibaba Health, Jing Tai Holdings, WuXi HeLian, China National Pharmaceutical Group, Genescript Biotech, CSPC Pharmaceutical Group, and Ping An Good Doctor.

Data sources include the Shanghai and Shenzhen stock exchanges and public information.

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MACD golden cross signals have formed, and these stocks are showing good upward momentum!