On the first trading day after the Mid-Autumn Festival (September 28), A-shares underwent a deep correction, with the Shanghai Composite Index falling nearly 2% at one point. Pharmaceutical assets once again demonstrated resilience, with localized counter-trend movements!

The pharmaceutical sector stubbornly resisted the decline. The Pharma ETF Huabao (562050), the only on-market ETF tracking the pharmaceutical index, briefly turned positive against the market trend. Innovative drug concept stock Livzon Pharmaceutical Group Inc. (000513) hit the limit up, while Health-100, Kanghong Pharmaceutical, and Puluo Pharmaceutical all rose more than 5%.

The medical sector fluctuated within a narrow range. Jinbo Bio rose over 4%, while heavyweight device leaders Mindray Medical and United Imaging Healthcare gained more than 2%. Medical ETF Huabao (512170) consolidated below the waterline.

Zhang Fang, fund manager of Pharma ETF Huabao (562050) and Medical ETF Huabao (512170), pointed out that at the current juncture, the main investment theme in pharmaceuticals is shifting from the earlier "undervaluation repair" to "innovation realization" driven, while the AIDD (AI-assisted drug discovery) industrial chain provides new structural opportunities. Attention should be paid to the medium-term allocation value of pharmaceuticals.

Looking ahead, October's ESMO will continue to read out data on ADCs, bispecific antibodies, and more; combined with the results of November's dual medical insurance and commercial insurance catalog, innovative drugs remain worth watching. Regarding AIDD, global computing power and large model manufacturers are accelerating their entry. After the explosion of AI candidate molecules, demand for wet lab processes such as gene synthesis, protein expression and purification, in vitro affinity validation, model animals, and sequencing has been systematically amplified, so relevant domestic companies are expected to benefit.

To seize new opportunities in oversold pharmaceuticals, investment tools to watch:

Pharma ETF Huabao (562050): The only ETF in the entire market tracking the pharmaceutical index, with an exclusive allocation of "70% innovative drugs + 20% traditional Chinese medicine," combining the high growth of innovative drugs with the high dividends of traditional Chinese medicine. Off-market feeder fund: 024986.

Medical ETF Huabao (512170): The flagship pharmaceutical and medical ETF in the entire market, with Q2 scale of 25.624 billion yuan. Focused on medical devices + medical services, while also covering AI healthcare, with over 30% CXO exposure. Off-market feeder fund: 012323.

[Data Source] Public information from Shanghai-Hong Kong-Shenzhen exchanges, China Securities Index Company, Hang Seng Index Company, etc. Weight data as of August 31, 2026.

[Fund Fee Rates] ETF funds do not charge sales service fees. When investors subscribe or redeem fund shares, the subscription and redemption agent broker may charge a commission not exceeding 0.5%, which includes related fees charged by the stock exchange, registration institution, etc. Fund fee rates are detailed in each fund's legal documents.

[Special Notice] The risk level of Medical ETF Huabao and its feeder fund as assessed by the fund manager is R4-medium-high risk, suitable for aggressive (C4) and above investors. The risk level of Pharma ETF Huabao and its feeder fund, as well as Medical ETF Huabao, is R3-medium risk, suitable for balanced (C3) and above investors.

[Risk Disclosure] The index constituent stocks in this article are for display purposes only. Individual stock descriptions do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund under the manager. The constituent stocks of the underlying index are adjusted in due course according to the index compilation rules. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, and any form of expression) is for reference only. Investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and predictions in this article do not constitute any form of investment advice to readers, nor shall they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Fund investment requires caution. MACD golden cross signals have formed; these stocks are performing well!