WuXi AppTec's performance boosts confidence, Hong Kong stock pharmaceutical ETFs like Yinhua rise 2.34%

(Source: Caixin)

Institutions are optimistic about the innovative drug industry chain, including CXO, AI + healthcare, and other sectors, believing that the trend of going global for innovative drugs remains unchanged. They are focusing on core tracks such as ADC and weight-loss drugs.

As of 11:04 AM on March 24, the Shanghai Composite Index increased by 0.86%, the Shenzhen Component Index rose by 0.19%, and the ChiNext Index fell by 0.67%. In ETFs, the Hong Kong-listed healthcare ETF YinHua (159776) increased by 2.34%. Components like BaiZe Medical (02609.HK), WuXi AppTec (603259.SH), and WuXi Biologics (02268.HK) rose over 5%. Other stocks such as Ascentage Pharma-B (06855.HK), Consonance-B (02162.HK), WuXi Biologics (02269.HK), Fosun International (00656.HK), YaoJieAnKang-B (02617.HK), RongChang Biotech (688331.SH), and MicroPort Medical (00853.HK) also increased.

In news, WuXi AppTec released its 2025 annual report, showing that the company expects to achieve operating revenue of 45.456 billion yuan in 2025, a year-on-year increase of 15.8%, and net profit attributable to the parent of 19.151 billion yuan, up 102.65% year-on-year. The significant growth of leading companies has boosted market confidence in the entire innovative drug industry chain.

Aijian Securities stated that recently, the Middle East situation has continued to escalate, with energy supplies limited, bringing uncertainty to global economic development. We believe that the short-term market is mainly influenced by international geopolitical factors and trading chips. Investment opportunities are focused on price-inflated products such as gloves and vitamins. In the long term, China’s pharmaceutical industry remains on an innovative development path, and after market clearing, there may be opportunities for long-term deployment. Looking ahead to 2026, we continue to be optimistic about China’s innovative drug export trend and will focus on tracking investment opportunities in core advantageous tracks such as ADC, bispecific antibodies, small nucleic acids, and weight-loss drugs.

Kaiyuan Securities stated that overall, we remain optimistic about innovative drugs and their industry chain (CXO + research services), as well as emerging strategic industries like AI, brain-computer interfaces, and biological manufacturing. With the upcoming first-quarter earnings season in 2026, the innovative industry chain is expected to continue its overall upward performance trend. Preclinical CRO contract signing is likely to accelerate growth, and we recommend focusing on these areas.