The concept of innovative drugs is gaining strength, and the CSI 500 ETF Huaxia (512500) is steadily rising at high levels in the afternoon.

Ask AI · Surge in External Licensing Revenue for Innovative Drugs, How to Catalyze a Strong Sector Rebound?

As of 14:07, the CSI 500 ETF Huaxia (512500) experienced fluctuations in the morning session, then maintained a steady high-level trend in the afternoon, with the latest price at 4.313 yuan, up 1.173%. In terms of holdings, the CSI 500 index components tracked by this ETF are actively rotating, with many small- and mid-cap growth stocks rebounding strongly, Perfect World hitting the daily limit up, Junshi Biosciences rising nearly 10%, and China National Heavy Duty Truck Group, Yingfeng Environment, and others leading gains. Regarding liquidity, the ETF’s trading volume has steadily increased, with a turnover of 204 million yuan, and a turnover rate of 1.47%, maintaining steady on-market activity. From intraday trends, the price in the afternoon fluctuated narrowly around the 4.313 yuan moving average. Strategically, it is recommended to focus on the sustainability of volume-price coordination; the logic of small- and mid-cap growth in the CSI 500 remains unchanged, and investors can gradually accumulate positions during the oscillation window.

On the news front, on April 1, the concept of innovative drugs in A-shares continued to strengthen, with half-day gains of Guangsheng Tang and Ruizhi Medical hitting the 20% daily limit, and many stocks surging significantly. Catalysts include: over $60 billion in external licensing revenue for innovative drugs in Q1; 10 innovative drugs approved this year (8 domestically produced); pharmaceutical companies turning losses into profits or experiencing high growth, signaling an industry harvest period; sector valuations at historic lows, providing strong rebound momentum.

Great Wall Guorui Securities stated that the catalytic factors for the pharmaceutical and biotech sector continue to accumulate, with drug and medical device innovation remaining the core theme. On one hand, domestic policies continue to send positive signals, with the NMPA organizing a three-year “Medical Device Clinical Innovation Achievement Transformation ‘Spring Rain Action’” nationwide, further strengthening support for the transformation and industrialization of innovative device results; on the other hand, overseas mergers, acquisitions, and licensing collaborations remain active. In the first three months of 2026, China’s external licensing transactions for innovative drugs exceeded $60 billion, nearly half of the total for 2025. Chinese innovative drug assets are increasingly participating in and recognized by the global trading system, further reinforcing the valuation basis of the “independent innovation + globalization realization” logic.

The CSI 500 ETF Huaxia (512500), closely tracking the CSI 500 Index, features low fees and minimal tracking error, allowing investors to easily allocate to 500 high-quality mid-cap A-shares, efficiently diversify risk, and capture the growth dividends of small- and mid-cap stocks.

Under the backdrop of economic restructuring and industry-driven innovation, valuation recovery space for small- and mid-cap stocks is clear. The CSI 500 ETF Huaxia (512500) helps investors share in the benefits of economic growth and is a core tool for achieving average returns in the A-share market.

Daily Economic News