Core Insights - On October 24, 2023, CSPC Pharmaceutical Group made its debut on the Hong Kong Stock Connect active trading list for the first time in a month [2][3] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 457.51 billion, accounting for 40.61% of the day's total trading amount, with a net buying amount of HKD 14.12 billion [2] - Among the active stocks, SMIC had the highest trading volume at HKD 103.55 billion, followed by Alibaba-W and Hua Hong Semiconductor with HKD 89.33 billion and HKD 54.03 billion respectively [2] Trading Activity Summary - CSPC Pharmaceutical Group recorded a trading volume of HKD 5.39 billion on the day, with a net sell amount of HKD 2.47 billion, and its stock price closed down by 3.90% [2][3] - The most frequently listed stocks in the past month include Alibaba-W and Hua Hong Semiconductor, each appearing 16 times, indicating strong interest from Hong Kong Stock Connect investors [2] - Other notable stocks on the active trading list include Tencent Holdings with a trading volume of HKD 35.65 billion and a net buying amount of HKD 3.75 billion, and Xiaomi Group-W with HKD 45.85 billion and a net buying amount of HKD 2.99 billion [2]

Market Overview - On October 24, the Hang Seng Index rose by 0.74%, closing at 26,160.15 points, with a net inflow of HKD 34.14 billion through the southbound trading channel [1] - The total trading volume for the southbound trading was HKD 1,126.62 billion, with a net buy of HKD 34.14 billion [1] Southbound Trading Details - The Shanghai Stock Exchange's southbound trading had a total transaction amount of HKD 726.19 billion, with a net buy of HKD 7.04 billion [1] - The Shenzhen Stock Exchange's southbound trading had a total transaction amount of HKD 400.44 billion, with a net buy of HKD 27.10 billion [1] Active Stocks - In the Shanghai Stock Exchange's southbound trading, the most actively traded stock was SMIC, with a transaction amount of HKD 62.05 billion, followed by Alibaba-W and Pop Mart, with transaction amounts of HKD 55.12 billion and HKD 34.28 billion, respectively [1] - In terms of net buying, Tencent Holdings had the highest net buy amount of HKD 4.63 billion, with its stock price increasing by 0.71% [1] - Pop Mart had the highest net sell amount of HKD 4.16 billion, with its stock price decreasing by 0.86% [1] Shenzhen Stock Exchange Active Stocks - In the Shenzhen Stock Exchange's southbound trading, SMIC led with a transaction amount of HKD 41.50 billion, followed by Alibaba-W and Huahong Semiconductor, with transaction amounts of HKD 34.21 billion and HKD 22.16 billion, respectively [2] - The stock with the highest net buy was Meituan-W, with a net buy of HKD 4.48 billion, and its stock price rose by 0.60% [2] - The stock with the highest net sell was CSPC Pharmaceutical Group, with a net sell of HKD 2.47 billion, and its stock price fell by 3.90% [2]

Core Points - The Hong Kong Innovative Drug ETF (159567) closed down 0.12% with a trading volume of 797 million yuan on October 24, 2024 [1] - The fund was established on January 3, 2024, with a management fee of 0.50% and a custody fee of 0.10% [1] - As of October 23, 2024, the fund's latest share count was 8.225 billion shares, with a total size of 6.801 billion yuan, reflecting a year-to-date increase of 1980.29% in shares and 1700.12% in size [1] Fund Performance - The current fund manager is Ma Jun, who has managed the fund since its inception, achieving a return of 65.38% during the tenure [2] - The fund's performance benchmark is the National Index for Hong Kong Innovative Drugs, adjusted for valuation exchange rates [1] Liquidity and Trading Activity - Over the last 20 trading days, the ETF has accumulated a trading amount of 22.849 billion yuan, with an average daily trading amount of 1.142 billion yuan [1] - Since the beginning of the year, the ETF has recorded a total trading amount of 227.996 billion yuan over 195 trading days, averaging 1.169 billion yuan per day [1] Top Holdings - The ETF's top holdings include: - Innovent Biologics (9.52% holding, 26 million yuan market value) - WuXi Biologics (9.47% holding, 25.8 million yuan market value) - BeiGene (8.73% holding, 23.8 million yuan market value) - CanSino Biologics (7.62% holding, 20.8 million yuan market value) - China National Pharmaceutical Group (7.17% holding, 19.6 million yuan market value) [2]

Market Performance - The Hong Kong stock market saw all three major indices rise, with the Hang Seng Index up 0.74% to close at 26,160.15 points, the Hang Seng Tech Index rising 1.82% to 6,059.89 points, and the National Enterprises Index increasing by 0.68% [1] - The total trading volume for the day reached 226.614 billion HKD [1] Sector Highlights - The semiconductor sector performed exceptionally well, with Hua Hong Semiconductor soaring nearly 14% to 82.4 HKD per share, and SMIC rising by 8% [1] - Research indicates that strong AI demand is expected to drive continued growth in the storage market, with price increases for storage products likely to persist until Q4 2025 due to limited capacity from major overseas suppliers [1] Capital Flows - Southbound funds continued to show a net inflow, with a net purchase of 3.414 billion HKD for the day [1] - The top three net purchases were Meituan-W (655 million HKD), SMIC (602 million HKD), and CNOOC (571 million HKD), while Pop Mart, CSPC Pharmaceutical, and UBTECH faced net sell-offs of 629 million HKD, 247 million HKD, and 211 million HKD respectively [1][2] Future Outlook - Institutions remain optimistic about the Hong Kong stock market, with expectations of a significant style shift in Q4, favoring low-position growth sectors like Hang Seng Tech [3] - CITIC Securities believes that the potential restart of the Federal Reserve's rate cut cycle will benefit the Hong Kong market, particularly the tech sector within the AI industry chain [3] - Huatai Securities notes that the market's central tendency remains unchanged, supported by ample liquidity, stable domestic policies, and positive trends in AI, new consumption, and pharmaceuticals [3]

Core Viewpoint - The announcement highlights that the pharmaceutical company has received approval from the National Medical Products Administration of China for its self-developed Class 1 chemical new drug SYH2061 injection, a double-stranded small interfering RNA (siRNA) drug, to conduct clinical trials in China [1] Group 1: Product Details - SYH2061 is designed for liver-targeted delivery using GalNAc conjugation and aims to effectively reduce levels of complement protein C5 [1] - The drug is administered subcutaneously and is the first domestically developed ultra-long-acting siRNA drug to enter clinical trials for lowering C5 levels, targeting conditions such as IgA nephropathy and other complement-mediated diseases [1] Group 2: Clinical Development Value - Preclinical studies indicate that SYH2061 demonstrates superior drug activity and efficacy duration compared to similar siRNA products, showcasing prolonged effects, good safety profiles, and high patient compliance [1] - The differentiated advantages of the drug suggest a high clinical development value [1]

Core Viewpoint - The company, Shiyao Group, has received approval from the National Medical Products Administration of China to conduct clinical trials for its self-developed chemical Class 1 new drug SYH2061 injection, a double-stranded small interfering RNA (siRNA) drug [1] Group 1: Product Details - SYH2061 is designed for liver-targeted delivery through the conjugation of N-acetylgalactosamine (GalNAc) and aims to effectively reduce the levels of complement protein C5 [1] - The drug is the first domestically developed ultra-long-acting siRNA drug to enter clinical trials for lowering C5 levels, suitable for treating IgA nephropathy and other complement-mediated diseases [1] Group 2: Clinical Development Value - Preclinical studies indicate that SYH2061 demonstrates superior drug activity and sustained efficacy compared to similar siRNA products, showcasing differentiated advantages such as prolonged drug action, good safety profile, and high patient compliance [1]

Core Viewpoint - The announcement highlights that the company has received approval from the National Medical Products Administration of China for its self-developed chemical Class 1 new drug SYH2061 injection, a double-stranded small interfering RNA (siRNA) drug, to conduct clinical trials in China [1] Group 1: Product Details - SYH2061 is designed for liver-targeted delivery of siRNA through the conjugation of N-acetylgalactosamine (GalNAc) and aims to effectively reduce levels of complement protein C5 [1] - The drug is administered subcutaneously and is the first domestically developed ultra-long-acting siRNA drug to lower C5 levels, suitable for treating IgA nephropathy and other complement-mediated diseases [1] Group 2: Clinical Development and Advantages - Preclinical studies indicate that SYH2061 demonstrates superior drug activity and sustained efficacy compared to similar siRNA products, showcasing long-lasting effects, good safety profiles, and high patient compliance [1] - The product has significant clinical development value due to its differentiated advantages in drug action and safety [1]

SYH2061注射液（雙鏈小干擾RNA藥物） 在中國獲臨床試驗批准 石 藥 集 團 有 限 公 司（「 本 公 司 」， 連 同 其 附 屬 公 司 統 稱「 本 集 團 」）董 事 會（「 董 事 會 」）欣 然 宣 佈，本集團自主研發的化學1類新藥SYH2061注射液（ 雙鏈小干擾RNA（「si RNA」）藥物 ）（「該 產品」）已獲得中華人民共和國國家藥品監督管理局批准，可在中國開展臨床試驗。 該產品是一款通過偶聯乙醯半乳糖胺(Gal NAc)實現肝臟靶向遞送的si RNA 藥物，以皮下給 藥的方式靶向補體蛋白C5（「C5」），能有效降低C5水平。通過優化序列和化學修飾的策略， 該產品可實現更持久的基因沉默效果，是國內自主研發並進入臨床試驗階段的首款超長效 降低C5水平的si RNA藥物，適用於治療Ig A腎病及其他補體介導相關性疾病。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產 生或因倚賴該等內容而引致之任何損失承擔任何責任。 CSPC PHARMACEUTICAL GROUP LIMI ...

Group 1 - The Hang Seng Index rebounded, closing up 0.72%, with the internet sector leading the gains, followed by banking, industry, technology, and real estate sectors [1] - The internet sector saw a rise of 1.07%, with Meituan up 4.06%, Alibaba up 1.67%, Tencent Holdings up 1.52%, JD Group up 1.5%, and Baidu Group up 1.22%. However, companies like SenseTime, Bilibili, and Kingdee International experienced declines [3] - The banking sector opened strong and maintained a consolidation above the midline, closing up 0.88%, with Postal Savings Bank rising 4.59% and Minsheng Bank up 2.39% [3] Group 2 - The consumer sector rebounded, closing up 0.35%, with notable gains from companies like Chenzi Biological up 6.68%, Li Ning up 6.55%, and Sands China up 4.4% [3] - The healthcare sector opened low and saw a slight reversal near the end, closing down 1.31%, with CSPC Pharmaceutical down 2.96% and China Biopharmaceutical down 2.78% [3]

Core Viewpoint - The Hong Kong stock market's innovative drug sector is experiencing a decline, with the Hong Kong Stock Connect Innovative Drug ETF (520880) dropping over 3.5% as of the report, indicating a potential buying opportunity for investors despite the downturn [1] Group 1: Market Performance - The Hong Kong Stock Connect Innovative Drug ETF (520880) has seen a trading volume exceeding 200 million yuan, continuing to exhibit high premiums in the market [1] - The innovative drug sector faced a significant drop recently, with the ETF attracting over 75 million yuan in a single day, totaling over 120 million yuan in the last four days [1] Group 2: Recent Developments - The ESMO 2025 conference recently showcased positive data for several core projects of Chinese innovative drugs [1] - On October 22, Innovent Biologics announced a global strategic partnership with Takeda Pharmaceutical worth 11.4 billion USD, setting a record for the value of business development (BD) transactions in China's innovative drug sector, involving three product rights and pipeline development [1] Group 3: Future Outlook - Huafu Securities suggests that the recent adjustments in the Hong Kong innovative drug sector may present a significant opportunity for investment in late October [1] - The long-term outlook remains positive for companies with commercialization capabilities and rich pipelines, particularly in BioPharma, potential BD targets, and cutting-edge technology [1] - The innovative drug industry is expected to benefit from interest rate cuts, with performance anticipated to improve, and the end-of-year BD period may act as a catalyst for growth [1] Group 4: Index Composition - The Hong Kong Stock Connect Innovative Drug ETF (520880) and its linked fund (025220) passively track the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, which includes top ten weighted stocks such as BeiGene, China Biologic Products, Innovent Biologics, and others [1]