20cm Express | Seizing the advantages of "innovation upgrade + supply chain resilience" in innovative drugs, the Sci-Tech Innovation Drug ETF Guotai (589720) experiences a slight pullback

Capitalizing on the strengths of the innovative drug sector—“innovation upgrades + supply chain resilience”—on April 7, the Cathay Guotai Kechuang Innovative Drug ETF (589720) fell by more than 1.8%.

CITIC Securities has pointed out that China’s pharmaceuticals and biologics industry and the chemical pharmaceuticals industry have advantages of “innovation upgrades + supply chain resilience.” From a global perspective, innovation value is becoming increasingly prominent; Chinese efforts are accelerating their penetration. In 2025, the overseas licensing upfront payment for innovative drugs significantly exceeded the total for all of last year. In terms of the pharmaceutical industry chain, innovation-driven market access is driving earnings growth. Internationalization—from BD to going global at the organizational level and strategic alliances—has become the second growth curve. With the industry facing a cluster of intensive catalysts in 2026, the logic for industrial development is expected to be further validated. Conferences such as ASCO will see a wealth of major data for validation. Domestic market demand is gradually recovering; companies are actively expanding their overseas layout. Over the medium to long term, domestic substitution in the industry chain is inevitable. Domestic policies are focused on high-quality development, with ongoing advancement in central procurement optimization, diversified payment methods, and continued implementation of medical service price reforms; innovative drugs have entered a period of commercialization and large-scale expansion.

Cathay Guotai Kechuang Innovative Drug ETF (589720) tracks the Kechuang Innovative Drug Index (950161). The index’s daily trading limit for daily gains and losses is 20%. The index focuses on the new drug R&D field driven by technological innovation. Its constituent stocks mainly include securities of listed companies in sectors such as biopharmaceuticals and chemical pharmaceuticals, which have strong R&D capabilities and innovative achievements. The index emphasizes allocating to pharmaceutical industry securities with high growth potential and technological leadership, in order to reflect the overall performance and market development trends of listed securities related to China’s new drug R&D.

Risk warning: Mentioning individual stocks is only for industry event analysis and does not constitute any recommendation or investment advice regarding any individual stock. Short-term gains and losses of the index, etc. are for reference only and do not represent its future performance, nor do they constitute any commitment or guarantee regarding fund performance. Views may be adjusted as market conditions change, and do not constitute investment advice or commitments. The risk-and-return characteristics of the fund mentioned vary; investors are kindly requested to read the fund’s legal documents carefully, fully understand product features, risk grades, and the principles of profit distribution, choose products that match their own risk tolerance, and invest cautiously. For fund fee rates, please refer to the legal documents.

Daily Economic News

(Editor: Zhang Xiaobo ）

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. The Hexun website maintains a neutral stance toward the statements and judgments made in the text, and does not provide any explicit or implied guarantees regarding the accuracy, reliability, or completeness of the information contained. Readers should treat this as reference only, and bear all responsibility themselves. Email: news_center@staff.hexun.com

Report