The fundamentals of the industry continue to improve, and the Medical Innovation ETF (516820) is actively traded.

As of March 9, 2026, 10:20 AM, the components of the CSI Medicine and Medical Devices Innovation Index (931484) showed mixed gains and losses. Inotek Medical led the gains with a 9.45% increase, China Resources Sanjiu rose by 0.53%, and Hualan Biological remained unchanged. Ailis declined. The latest price of the Medical Innovation ETF (516820) is 0.35 yuan.

In terms of liquidity, the Medical Innovation ETF had a turnover rate of 1.79% during the trading session, with a transaction volume of 33.05 million yuan. Looking at a longer timeframe, as of March 6, the ETF’s average daily trading volume over the past year was 51.75 million yuan. The current size of the ETF is 1.8667 billion yuan. (Data source: Wind)

On the news front, the fundamentals of the innovative drug industry have continued to improve recently. The 2026 government work report proposed building a new pillar industry in biomedicine and promoting high-quality development of innovative drugs and medical devices, significantly elevating the industry’s status.

Dongwu Securities pointed out that for the first time, the Two Sessions listed innovative drugs as an “emerging pillar industry,” emphasizing accelerating commercial insurance development and promoting high-quality growth of innovative drugs. The government work report from this year’s Two Sessions explicitly positioned biomedicine as an “emerging pillar industry,” marking a new phase where the industry transitions from cultivation to a strategic pillar and economic growth engine. Regarding commercial insurance, the report called for speeding up the development of commercial health insurance. As of March 6, 2026, China’s total outbound BD (business development) contracts for innovative drugs reached $56.8 billion, with an initial payment of $3.3 billion. The total contracts account for 41% of the full-year total over 25 years, exceeding the 24-year annual level, and the initial payment is equivalent to 46% of the 25-year total. Currently, most innovative drug companies’ stock prices have significantly retreated from their 2025 highs, with valuations and sentiment at cyclical lows. However, from the perspective of ongoing industry BD fulfillment and pipeline development, short-term stock fluctuations have not changed the long-term growth logic of innovative drug exports. The sector’s medium- and long-term investment value remains promising.

The Medical Innovation ETF closely tracks the CSI Medicine and Medical Devices Innovation Index, which selects 30 listed companies from the healthcare industry with good profitability, growth potential, and R&D capabilities as index samples. The index aims to reflect the overall performance of profitable and growing pharmaceutical and medical device companies.

Data shows that as of February 27, 2026, the top ten holdings of the CSI Medicine and Medical Devices Innovation Index (931484) are WuXi AppTec, Mindray Medical, Hengrui Medicine, Aier Eye Hospital, Pien Tze Huang, Shuanghe Cheng, East China Medical, Kanglong Chemical, Ailis, and Dong’e E Jiao. These ten stocks account for a total of 63.75% of the index weight.

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