On August 7, the pharmaceutical outsourcing (CXO) sector experienced a renewed surge. Porton Pharma Solutions Ltd, Shanghai Haoyuan Chemexpress Co., Ltd, and Pharmaron Beijing Co., Ltd all collectively rose over 10%, while Asymchem Laboratories (Tianjin) Co., Ltd hit its daily limit and closed. The heavyweight leader, WuXi AppTec Co., Ltd, gained over 5% to reach a new three-year high.
HuaBa Fund's Medical ETF (512170), the largest medical ETF in the market by total assets, rebounded strongly with a 3% gain, pushing its intraday price to a new high in this rebound cycle. Data shows that the benchmark index tracked by the Medical ETF covers 8 CXO heavyweight stocks, with a combined weight of nearly 30%.
On the news front, WuXi AppTec's semi-annual report exceeded market expectations: In the first half of the year, the company achieved revenue of 28.897 billion yuan, a 38.93% year-on-year increase; net profit attributable to the parent company historically surpassed 10 billion yuan for the first time in the first half of the year, reaching 11.08 billion yuan, a 29.43% increase year-on-year; Q2 single-quarter revenue of 16.5 billion yuan set a new historical record. The company has raised its full-year 2026 revenue forecast to 58.5-60.5 billion yuan, with the year-on-year growth rate for continuing operations revenue adjusted to 35-39%.
Additionally, several overseas multinational corporations, including Johnson & Johnson, Sanofi, Bristol-Myers Squibb, Novartis, and Roche, along with CXO firms, have recently disclosed positive interim earnings reports and raised their full-year 2026 guidance. Orders, revenue, and profitability performance for CDMO and CRO services continue to improve.
China Securities Co., Ltd. research report believes that since 2026, the long-term structural opportunities in the domestic innovative drug industry have continued to materialize. Domestic investment and financing are steadily improving, and new drug modality tracks remain hot and are further scaling up. New contract signings and performance in the domestic CRO/CDMO industry are expected to accelerate growth, driving the CXO industry chain into a new phase of development.
For efficient participation in CXO trading, two key tools are highlighted: Medical ETF HuaBao (512170): The largest medical and healthcare themed ETF in the market by total assets, focusing on medical devices (including brain-computer interfaces) and medical services (with CXO content near 30%), also incorporating AI medical concepts. The over-the-counter feeder fund is 012323.
Hong Kong Stock Connect Medical ETF HuaBao (159137): Heavily weighted in the innovative drug supply chain, with 48% CXO and 20% innovative drugs, while also covering AI medical, medical devices (including brain-computer interfaces), and other scarce leaders in the field. The underlying assets are Hong Kong stocks, offering high elasticity and T+0 trading. The over-the-counter feeder fund is 026922.
Data sourced from the Shanghai and Shenzhen stock exchanges, CSI Index Co., Ltd., etc., with weight data as of July 31, 2026. Institutional views: Northeast Securities’ July 27, 2026 report, "Northeast Medical Health Weekly Report: Continued Optimism for Innovative Drugs and Devices as Long-term Main Theme, AI Healthcare Has Entered a Value Realization Window." Industrial Securities’ August 3, 2026 report, "Industrial Securities Pharmaceutical Industry August 2026 Investment Monthly Report."
Note: The ETF funds mentioned in the article do not charge sales service fees. Fund fee rates are detailed in each fund's legal documents. Risk warning: The index constituent stocks in the article are only for display purposes. Individual stock descriptions do not constitute any form of investment advice, nor do they represent the holdings or trading movements of any fund managed by the fund manager. The constituent stocks of the underlying index are adjusted in a timely manner according to the index compilation rules. The fund manager assesses the risk level of the Hong Kong Stock Connect Medical ETF HuaBao and the Medical ETF HuaBao feeder fund as R4-Medium-High Risk, suitable for aggressive (C4) and above investors. The risk level of the Medical ETF HuaBao is R3-Medium Risk, suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, forms of expression, etc.) is for reference only. Investors must be responsible for their own investment decisions. Furthermore, any views, analysis, or predictions in this article do not constitute investment advice to readers, nor are we responsible for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of the fund. Fund investment requires caution. MACD golden cross signal forms, these stocks are rising well!