Innovative Drug BD Maintains High Growth, May Be Right Time to Configure on Dips

NightAirdropper · 2026-03-23T06:51:51+00:00

Affected by rising crude oil prices and expectations of US interest rate hikes, the innovative pharmaceutical sector experienced a significant decline on March 23rd, with the Huaxia Science and Innovation Pharmaceutical ETF falling more than 3.7%. Despite the Science and Innovation Biology Index dropping over 20%, fundamentals continue to improve, valuations are at historic lows, and investment opportunities may emerge.

NightAirdropper

2026-03-23 06:51:51

Abstract generation in progress

Influenced by factors such as the surge in crude oil prices, rising expectations of U.S. interest rate hikes, and a decline in the A-share market, the innovative drug sector experienced a significant drop after the market opened on March 23, with the CSI Innovation Medical ETF Huaxia (588130) falling more than 3.7% in the afternoon.

Since January 13, the CSI Innovation Biological Index (000683.SH) has fallen over 20%, but at the same time, the fundamentals of innovative drug companies continue to improve. On one hand, the number of BD transactions for Chinese innovative drugs in January and February reached 44, totaling $53.276 billion, surpassing any single quarter in 2025; on the other hand, with the decline, the valuation of the CSI Innovation Biological Index is now at the 2.36th percentile historically, meaning it is cheaper than nearly 98% of historical levels.

Therefore, amid the divergence between high growth and low valuation, the investment opportunity for the CSI Innovation Medical ETF Huaxia (588130) may be brewing.

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