Biopharmaceutical ETF Tianhong(159859) achieved a net subscription of over 70 million shares yesterday, ranking first among similar funds. Institutions: optimistic about investment opportunities in the pharmaceutical industry this year.

Ask AI · Private equity research pivots to the pharmaceutical sector—does it signal a new investment boom?

Yesterday (April 7), the three major indexes all rose collectively. By the close, the CSI Biopharmaceutical Index (399441.SZ) fell 0.15%. Among its constituent stocks, Heli Biosciences rose more than 3%, Zhifei Bio-Tech rose nearly 3%, and Watson Biotech and Sinocell rose more than 2%.

Regarding related ETFs, the Biopharmaceutical ETF Tianhong (159859) had a trading value of 133 million yuan yesterday, ranking No. 1 among comparable products. Wind data shows that the ETF received net subscriptions of 77.8 million shares yesterday, also ranking No. 1 among comparable products. As of April 3, the ETF’s latest outstanding shares were 9.80 billion, and its latest outstanding size was 3.815 billion yuan, ranking No. 1 among comparable products.

The Biopharmaceutical ETF Tianhong (159859) closely tracks the Biopharmaceutical Index. The CSI Biopharmaceutical Index uses, for its sample universe, A-share listed companies related to the biopharmaceutical industry. Based on combined rankings by market capitalization and liquidity, it selects the top 30 stocks as index sample constituents (and when the number is insufficient, it selects by the actual number), reflecting the overall performance of the biopharmaceutical industry and providing the market with an index-based investment product for sub-industries. This ETF is also equipped with a feeder fund (A: 011040, C: 011041).

On the news front, according to media reports, the direction of private equity research has quietly shifted. The latest statistics from Private Equity PaiPaiWang show that in March, 871 private equity firms participated in A-share research and gathered data in more than 2,700 research visits in total. Judging by industry distribution, the electronics industry replaced power equipment as the sector with the highest frequency of private equity research. The pharmaceutical and biopharmaceutical industry followed closely behind. Meanwhile, private equity firms at the hundred-billion-yuan scale such as Gao Yi Asset and Dan Shui Quan Investment, which hold substantial capital, also showed strong preferences in March for the electronics and pharmaceutical sectors. In the view of industry insiders, against the backdrop of increasing volatility from geopolitical conflicts in the Middle East, technology-innovation-related assets with high fundamental certainty and the ability to deliver steady growth are set to become a better choice for dealing with market uncertainty.

CITIC Securities stated that we are optimistic about investment opportunities in the pharmaceutical industry in 2026. After recent bouts of market fluctuation and adjustment, valuations have fallen back to relatively low levels, and the upward trend is expected to resume. In terms of investment approach, it is about seeking alpha from pharmaceutical hard technologies and sub-sectors, and recommending attention to innovative drugs (leaders in BIC and FIC pipelines), innovative medical devices (imaging, high-value consumables, consumer devices, etc.), and the medical AI direction, while also tracking the recovery in pharmaceutical consumption and independent third-party ICL.