Innovative Drug ETF Tianhong (517380) underlying index soars over 4%, with nearly 30 million yuan net inflow in the past 20 days.

On the market board, both Shanghai and Shenzhen markets opened high and continued to rise, with the innovative drugs sector increasing. Regarding relevant ETFs, the Innovation Drugs ETF Tianhong (517380) rose 4.14% intraday on its benchmark index, with trading volume reaching 22.1681 million yuan, ranking first among funds in the same category; its turnover rate was 1.17%, also ranking first among funds in the same category. Among constituent stocks, INVENTISBIO - U Yifang Bio - U, JUNSHI BIOSCIENCES- U Junshi Bio - U, ASYMCHEM Kailaiying, SALUBRIS Sinopharm? Xinlitai, BEONE MEDICINES BeiGene rose more than 5%; several other stocks also followed higher, including JOINN Zhaoyan New Drug, HENGRUI PHARMA Hansoh Pharmaceutical, TIGERMED Tigermed, and others.

The Innovation Drugs ETF Tianhong (517380) has recorded a cumulative net capital inflow of 29.8048 million yuan over the most recent 20 trading days. As of March 31, 2026, the fund’s latest AUM was 1.857 billion yuan, ranking first in the entire market for this benchmark.

The Innovation Drugs ETF Tianhong (517380) is highly favored by investors, driven by the continuously improving fundamentals of the innovative drugs sector. Since this year, multiple positive factors—including a surge in BD (business development) transactions, breakthroughs in AI drug discovery technology, and optimization of medical insurance policies—have pushed profits of companies in innovative drugs and CXO (pharmaceutical R&D outsourcing) and other fields to grow at a fast pace, boosting market confidence. The ETF also allocates 2 off-exchange connection funds (Class A: 014564; Class C: 014565).

On the news front, according to Caixin News, the General Office of the CPC Central Committee and the General Office of the State Council recently issued the “Opinions on Accelerating the Establishment of a Long-Term Care Insurance System,” which states that it will take about 3 years to basically build a long-term care insurance system covering the entire population nationwide. On the funding side, it will implement a diversified cost-sharing model among units, individuals, and the government; on the benefits side, it will focus on people with severe care needs. ① According to Huaxin Securities, in the first quarter of 2026, China’s external BD events for innovative drugs totaled 49, with upfront payments exceeding $3.3 billion and total deal value nearing $57 billion, already surpassing the level of all of 2024; ② In addition, Kangnoya NewCo’s partner company Ouro Medicines was acquired by Gilead for $2.175 billion, and the company will receive about $250 million in upfront payment. ③ According to Everbright Securities, from April 17 to 22, the AACR annual meeting is about to be held, with more than 140 China-based pharmaceutical companies bringing more than 250 innovative drug products to the event; recently, companies such as Kelun-Biotech and Jishibio have also released a concentrated set of positive clinical data.

Eritian Securities believes that the pharmaceutical sector has significant allocation value, as population aging will drive demand growth in chronic disease management, innovative drugs, and medical devices over the long term. Looking ahead to 2026, the industry fundamentals are expected to improve; it recommends paying attention to innovative drugs, traditional Chinese medicine, medical devices, and other sectors that combine both defensiveness and growth.

Daily Economic News