Weekly Focus: Innovative drugs surge sharply from lows, is the deployment signal here? Geopolitical conflicts persist, and the metals and chemical sectors are迎来 a new round of upward trends?

Friday (March 27), A-shares opened lower and then rebounded strongly, with the Shenzhen Component Index up more than 1%. Trading volume across both markets narrowed to 1.85 trillion yuan. More than 4,300 stocks across the entire market rose. The main market themes were concentrated in two areas: innovative drugs and lithium batteries.

Innovative drugs surged across the board, and pharmaceutical-related assets in A-shares and Hong Kong shares performed impressively. Among them, the 100% innovative drug R&D target—Yuanta? sorry—Vanguard? No, keep original: the Hong Kong-listed innovation drug ETF (Huabao) traded via Stock Connect (520880) skyrocketed 5.51%, and the Pharma ETF (Huabao) (562050), heavily weighted toward A-share innovative drug stocks, jumped 4.21%, with both reaching their largest single-day gains in history.

The lithium battery industrial chain drove a broad rise in the non-ferrous metals and chemical sectors. The non-ferrous metals ETF (Huabao) (159876), which focuses on leading companies in the non-ferrous metals industry, rose again by nearly 3% in a single day; this week it continued to recover, ending a three-week losing streak on the weekly chart. The chemical ETF (Huabao) (516020) closed up 2.74%, recording three consecutive positive sessions on the daily chart and also ending a three-week losing streak on the weekly chart.

Industrial Securities (Xingye Securities) noted that the ongoing escalation of geopolitical conflict in the Middle East is intensifying volatility in the global commodities market. Investors can place a high degree of focus on energy supply security, the evolution of inflation expectations, and the direction of allocation across major asset classes. Strategically, A-shares should not be overly pessimistic; they have clear support. The certainty of China’s medium- to long-term economic development provides solid support for the market. At the same time, China’s domestic capital market regulation and macro decision-making attach great importance to market stability, and A-shares have the role of a “stabilizing pillar.”*

[ETF Everything You Need to Know—Hot Topic Closing Recap] We’ll focus on trading and fundamentals for sector-themed ETFs such as innovative drugs, non-ferrous metals, and chemicals.

I. Has the counterattack started? Low-level breakout in Hong Kong Stock Connect innovation drugs; 520880 surges on heavy volume up 5.5%! The leader leads with a gain of 14%; Innovent? and? keep original: Tong—? English: “Incyy Intelligent, Weili Zhibo-B” surge 10%

A+H pharmaceutical assets surged strongly, leading the entire market! Innovative drugs were first in line: the 100% innovative drug R&D target—Hong Kong Stock Connect Innovation Drug ETF (Huabao) (520880) soared 5.51%, and the Pharma ETF (Huabao) (562050), heavily weighted in A-share innovative drug stocks, rose 4.21%, with both setting record largest single-day gains. Medical also moved actively: Hong Kong Stock Connect Medical ETF (Huabao) (159137) and Medical ETF (Huabao) (512170) closed up 3.36% and 2.51%, respectively.

Among A+H pharma assets, the Hong Kong Stock Connect innovation drug uptrend was the strongest! Hong Kong Stock Connect Innovation Drug ETF (Huabao) (520880) fully showed high upside convexity, with intraday amplitude of nearly 7% for the full day. During the session, it hit a high of 5.72%, and a very long bullish candle strongly “engulfed the prior day’s decline” (“yang bao yin”). Trading activity inside the fund was especially active: the single-day trading value was 740 million yuan, up about 80% versus the prior day, setting a new high in nearly four and a half months!

Hong Kong Stock Connect Innovation Drug ETF (Huabao) (520880) covers 50 Hong Kong-listed innovative drug R&D companies. The median stock gain among constituents was close to 5%, and 6 stocks gained more than 10%! Key heavyweight leader CSPC Pharmaceutical Group went on a frenzy, surging 13.85%; Sinheng Pharmaceutical rose 10.41%; and new entrants added as constituents this month, such as Innovent and Bei Gene? keep original: WeiLi ZhiBo-B, surged in tandem, each jumping more than 10%.

What are the market catalysts? Focus on the following.

1、Innovative drug leaders received large share buy-ins from the actual controller. On March 26, the actual controller of CSPC Pharmaceutical Group, Cai Dongchen, made a large increase in holdings of 49.4 million shares, involving HKD 413 million, with the increase size especially significant—showing management’s firm confidence in the company’s long-term value.

2、Several innovative drug companies reached an earnings inflection point. As of now, among the constituents of Hong Kong Stock Connect Innovation Drug ETF (Huabao) (520880), 30 component stocks have released their 2025 annual reports, of which 17 innovative drug R&D companies are profitable. Sixteen companies reported net profit year-over-year growth of double digits or more, including 6 companies such as Xinda Biotech with YoY growth rates exceeding 100%, and the highest growth rate exceeded 11 times!

3、Expect strong catalysts for major events in the future. The AACR annual meeting will be held in San Diego, United States, from April 17–22, 2026. According to incomplete statistics, 104 Chinese pharmaceutical companies will attend with 250-plus innovative drug candidates, and the overall visibility of Chinese innovative drug companies will increase significantly.

In the secondary market, this round of adjustment in Hong Kong Stock Connect innovation drugs has lasted for two quarters. The left-side allocation window is gradually becoming clear. For allocation tools, choose the 100% innovative drug R&D target—Hong Kong Stock Connect Innovation Drug ETF (Huabao) (520880). It invests 100% in innovative drug R&D companies, with the top ten weights accounting for more than 70%. Its leader attributes are prominent. The underlying assets are Hong Kong-listed, with high upside convexity and a T+0 advantage.

II. Lithium ore stocks are sparking a surge of daily limit-ups! Ganfeng Lithium tops the A-share inflow leaderboard; energy metals lead both markets! Huabao Fund Non-ferrous Metals ETF (159876) reached a high of 3.6% at most.

In the A-share market, despite the overnight plunge in U.S. stocks, it delivered an independent performance. Energy metals led both markets, lithium ore stocks kicked off a frenzy of daily limit-ups, and Ganfeng Lithium, Yungxing Materials, and Shengxin Lithium Energy all hit limit-ups. Even a small-cap metal leader, Yunnan Germanium Industry, also hit a limit-up, and its share price hit a historical high.

For popular ETFs, the Non-ferrous Metals ETF (Huabao) (159876), which captures leading non-ferrous metals companies, recorded the highest intraday gain, reaching a high of 3.61% inside the market, and closed up 2.91%, reclaiming the 10-day moving average line.

On the fund-flow side, more than 14.8 billion yuan of main funds bought aggressively the non-ferrous metals sector. The sector’s inflow amount ranked first among 31 Shenwan first-level industries. Ganfeng Lithium received net inflows from main funds of 3.734 billion yuan for the whole day, topping the A-share inflow leaderboard.

On the news front, the main contract of lithium carbonate futures broke through the 160,000 yuan/ton mark in a single move, with total gains of more than 14% over the past five days. When the global supply-demand pattern reverses—“supply disruption” meets “energy storage mega-orders”—a new cycle is likely to begin:

1、On the supply side: Zimbabwe, the world’s fourth-largest lithium mine producing country, announced in late February that it would indefinitely suspend all exports of raw ore and lithium concentrate. This ban has already lasted nearly one month, far exceeding the short-term disruptions previously expected by the market. Zimbabwe contributes about 10% of global lithium resource output, and about two-tenths of its lithium concentrate flows to China. This “supply disruption” effect has sharply tightened the availability of spot supply in the domestic market in the short term.

2、On the demand side: the energy storage market in 2026 is showing a blowout trend. Data show that in January–February 2026, domestic energy storage cell output surged 91% year over year. Driven by the AI data-center construction boom and a high-oil-price substitution effect resulting from geopolitical conflict in the Middle East, UBS predicts that lithium battery energy storage demand in 2026 will grow by 55%. Energy storage is shifting from a supporting role to a starring role. It is expected that by 2035 its share in lithium demand will rise from the current low single digits to 42%.*

Xingye Securities said that downstream demand for battery cells remains at a high level. At the same time, disturbances in lithium mine certificate exchanges in Jiangxi continue on the supply side, leaving latent concerns about supply. Under the backdrop of strong spot demand and lithium mine restart ongoing but still running below expectations, as well as the uncertainty created by the lithium mine export ban disturbance in Zha? keep original: Zhanxi? No; keep: “Jin? de”: The ban in Zimbabwe, short-term lithium prices may remain tilted toward strong and choppy trading. *

Looking ahead for the non-ferrous metals sector, Sin? keep original: Shenwan Hongyuan said that recent geopolitical disturbances in the Middle East and rising energy prices create compounded concerns about stagflation, while asset volatility is elevated, putting overall pressure on the non-ferrous metals sector. Under long-term drivers of deglobalization, investment logic has moved into a new paradigm—from precious metals and commodities to strategic small metals. The non-ferrous metals segment is expected to continue rising, and near-term volatility can provide opportunities for within-the-year allocation.

III. Lithium carbonate continues to rebound! The turning point in industry sentiment ignites chemicals; nearly 20 billion yuan of main funds hunt the opportunity! Huabao Fund Chemical ETF (516020) surged more than 3% intraday.

The chemical sector is attacking across the board! The chemical ETF (Huabao) (516020), reflecting the overall performance of the chemical sector, traded with strength and rose in a volatile manner right after the open, kept fluctuating at high levels in the afternoon, and hit a maximum intraday gain of 3.28%. As of the close, it was up 2.74%.

In terms of constituents, some individual stocks in segments such as potash fertilizer, nitrogen fertilizer, and synthetic resins led the gains. By the close, Yunnan? Actually: “Asia Jiali?;” keep names as natural: Y? The Chinese names must be translated but none present. Asia? anyway: As of the close, AsiaPotash International surged more than 8%, Salt Lake Co. jumped more than 7%, and Luxi Chemical, Blue Sail Technology, and Guangdong Hongda also posted gains.

On the fund-flow side, the chemical sector continues to receive additional capital from main funds. According to Wind data, as of the close, the basic chemical sector received net inflows from main funds totaling 18.793 billion yuan on a single day. Over the past 5 days, the cumulative inflow into the basic chemical sector reached 39.54 billion yuan, with net inflows ranking at the top among 30 CICC first-level industries, staying in the high position.

On the news front, the government of Zimbabwe recently announced an indefinite pause on all exports of lithium concentrate, and as of now has not issued any clear implementation details, with the duration of the ban far exceeding market expectations. It is reported that this country is an important global supplier of lithium resources. This move significantly exacerbates the global tightness in lithium raw-material supply. As a result, the price of lithium carbonate has shown signs of stabilizing and rebounding.

Some analysts noted that domestic mica mining permits have not been resolved yet, and the probability of resuming production for the Ba? keep name: “Guangxia Wowo lithium mine” within the year is extremely low. Meanwhile, overseas Zimbabwe lithium mine policies have not been finalized, which will affect long-term raw-material supply. On the demand side, sales of new energy vehicles have been weak, combined with the closure of the export rush window, which makes funds worry that seasonal demand may be soft and lead to inventory build-ups. However, material links still maintain full production and full sales, with high production/operating enthusiasm, and it is expected to continue to provide some support for lithium carbonate prices.

Looking ahead, Ka? keep: “Kaiyuan Securities” stated that the turning point in chemical sector sentiment is gradually becoming clear. Currently, crude oil volatility has already shown a marginal downward trend. Even if there is still high volatility in later stages, the marginal impact on the sector will continue to weaken. After this round of adjustment, most leading chemical industry companies have entered deep value territory, and it is expected that the chemical industry’s boom cycle may accelerate to arrive.*

How to seize opportunities in the chemical sector? Investing through the Huabao Chemical ETF (516020) may offer more efficient—possibly even higher—allocation. Public information shows that the Huabao Chemical ETF (516020) tracks the CSI Chemical Sub-industry Thematic Index. The combined weight of the petroleum and petrochemical + basic chemical sectors exceeds 80%. Off-exchange investors can also allocate to the chemical sector through the Huabao Chemical ETF Connect Fund (Class A 012537/Class C 012538).

Note: For fee details, see the legal documents of each fund.

Source: Shanghai and Shenzhen exchanges, etc., as of 2026.03.27. Reminder: Recent market volatility may be relatively large; short-term gains or losses do not indicate future performance. Investors should make rational investments strictly based on their own financial conditions and risk tolerance, and pay close attention to position sizing and risk management.

*Institutional views reference sources: Caixin? Actually: Ca? keep original brand: “Caixin Media” reported “Xingye Securities Wang Han talks about the Middle East situation; the dollar and gold trends are ‘barometers’”; UBS report issued on Feb 7 “The lithium price opens a third round of上涨 cycle; a supply-demand gap drives high industry sentiment”; Xingye Securities’ view on March 26, see the article “Xingye Securities: Jiangxi lithium mine certificate exchange + Zimbabwe export ban, lithium prices tilted strong in the short term”; Shenwan Hongyuan March 18 release “2026 spring non-ferrous metals industry investment strategy: move forward amid volatility”; Ka? keep: Ka? Open? “Ka??” Securities March 22, 2026 basic chemical industry weekly report “Chemicals enter the strike zone; continue to firmly back the bull market in chemicals.”

Risk warning: The Huabao Non-ferrous Metals ETF passively tracks the CSI Non-ferrous Metals Index. The base date of the index is 2013.12.31, and it was published on 2015.7.13. The Huabao Chemical ETF passively tracks the CSI Chemical Sub-industry Thematic Index. The base date of the index is 2004.12.31, and it was published on 2012.4.11. The index constituent stocks are adjusted in a timely manner according to the index compilation rules; past backtest performance does not predict future index performance. The individual stocks mentioned in the article are only presented objectively as index constituents for listing purposes and do not constitute any recommendation of any stock. They do not represent the fund manager’s or fund’s investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, metrics, theories, and any form of statements, etc.) is for reference only; investors are responsible for any investment actions they decide independently. In addition, any viewpoints, analysis, and forecasts in this article do not constitute any form of investment advice to readers, and the author is not liable for any direct or indirect losses arising from the use of this article’s contents. Investors should read fund legal documents carefully, such as the “Fund Contract,” “Prospectus,” and “Fund Product Information Summary,” to understand the risk-return characteristics of the fund and choose products that match their risk tolerance. The fund’s past performance does not predict its future performance, and the performance of other funds managed by the fund manager does not guarantee the fund’s performance. Based on the fund manager’s assessment, Huabao Chemical ETF, Huabao Non-ferrous Metals ETF, Huabao Pharma ETF, and Huabao Medical ETF are rated as R3—medium risk—suitable for investors with a balanced profile (C3) and above. The Huabao Hong Kong Stock Connect Innovation Drug ETF and Huabao Hong Kong Stock Connect Medical ETF are rated as R4—medium-high risk—suitable for investors with an active profile (C4) and above. For suitability matching opinions, please refer to the sales institutions. Sales institutions (including the fund manager’s direct sales channels and other sales institutions) conduct risk evaluation for the above funds in accordance with relevant laws and regulations. Investors should promptly pay attention to the suitability opinions issued by the fund manager. Suitability opinions from different sales institutions do not necessarily agree, and the fund product risk rating evaluation results issued by the fund sales institutions must not be lower than the risk rating evaluation results made by the fund manager. The “Fund Contract” may contain differences in risk-return characteristics and risk rating of the fund due to different factors considered. Investors should understand a fund’s risk-return situation, select fund products prudently based on their own investment objectives, time horizon, investment experience, and risk tolerance, and bear the risk themselves. The registration of the above funds by the CSRC does not indicate any substantive judgment or guarantee regarding the investment value, market prospects, and returns of this fund. Fund investments involve risks; proceed with caution.

The MACD “golden cross” signal has formed—these stocks are showing strong momentum!

A massive amount of information and precise interpretation—only on Sina Finance app

责任编辑：杨红卜