Core Insights - The Shanghai Composite Index decreased by 0.37%, while the CSI Hong Kong-Shanghai-Shenzhen 500 Healthcare Index fell by 1.74%, closing at 8507.96 points with a trading volume of 40.594 billion yuan [1] - Over the past month, the CSI Hong Kong-Shanghai-Shenzhen 500 Healthcare Index has increased by 17.84%, 24.27% over the last three months, and 34.48% year-to-date [1] Index Composition - The CSI Hong Kong-Shanghai-Shenzhen 500 Healthcare Index is composed of 11 industry categories, reflecting the overall performance of different sectors within the index [1] - The top ten holdings in the index are: WuXi AppTec (10.42%), Hengrui Medicine (9.97%), BeiGene (9.63%), Innovent Biologics (6.64%), Mindray Medical (6.06%), WuXi Biologics (5.19%), CanSino Biologics (4.4%), China National Pharmaceutical Group (3.36%), CSPC Pharmaceutical Group (3.17%), and United Imaging Healthcare (2.85%) [1] Market Distribution - The market distribution of the CSI Hong Kong-Shanghai-Shenzhen 500 Healthcare Index shows that the Hong Kong Stock Exchange accounts for 37.87%, the Shanghai Stock Exchange for 33.61%, and the Shenzhen Stock Exchange for 28.52% [2] Sector Allocation - The sector allocation within the index includes: Chemical Drugs (36.20%), Pharmaceutical and Biotechnology Services (18.33%), Biopharmaceuticals (18.14%), Medical Devices (11.07%), Traditional Chinese Medicine (8.56%), and Medical Commerce and Services (7.70%) [2] Index Adjustment - The index samples are adjusted biannually, with adjustments occurring on the next trading day following the second Friday of June and December each year [2] - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2] Fund Tracking - Public funds tracking the CSI Hong Kong-Shanghai-Shenzhen 500 Healthcare Index include the China Merchants CSI Hong Kong-Shanghai-Shenzhen 500 Healthcare ETF [3]

Investment Rating - The report indicates a positive outlook for the autoimmune therapy market, suggesting significant growth potential and investment opportunities in the sector [8]. Core Insights - The autoimmune market is the second largest after oncology, with a global market size of $132.3 billion in 2022, projected to reach $176.7 billion by 2030, reflecting a compound annual growth rate (CAGR) of 3.68% from 2022 to 2030 [8]. - The report highlights the potential for multi-target interventions to enhance treatment efficacy in autoimmune diseases, transitioning from monoclonal antibodies to bispecific and multispecific antibodies [19]. - The report emphasizes the significant market space for autoimmune therapies in China, where the autoimmune market size was only $2.9 billion in 2022, representing just 8% of the oncology market size of $34.7 billion, indicating substantial room for growth [8]. Market Overview - The global autoimmune drug market is expected to grow significantly, with the market size projected to increase from $1,323 million in 2022 to $1,767 million by 2030 [8]. - The report provides a detailed analysis of various autoimmune diseases, their prevalence, and the corresponding patient populations globally, including conditions like atopic dermatitis, chronic obstructive pulmonary disease, and rheumatoid arthritis [6][11]. Clinical Research Progress - The report outlines advancements in clinical research for dual-target and multi-target therapies, indicating a shift towards more effective treatment options for complex autoimmune diseases [19][22]. - It discusses the development of several blockbuster monoclonal antibody drugs in the autoimmune sector, with projected sales for top drugs in 2024, including Dupilumab at $14.15 billion and Risankizumab at $11.72 billion [9]. Key Companies to Watch - The report identifies key companies involved in the development of autoimmune therapies, including Sanofi, AbbVie, and Johnson & Johnson, highlighting their leading products and market positions [9][25].

Investment Rating - The report maintains a positive outlook on the pharmaceutical and biotechnology industry, emphasizing the transition from "Made in China" to "Created in China" for innovative drugs [10]. Core Insights - The report highlights that domestic innovative drugs are gaining global competitiveness and are currently in the first and second stages of international expansion, primarily through licensing agreements and partnerships [10][12]. - The report identifies key areas of focus for investment, including PD-(L)1 plus, ADCs, and GLP-1 drugs, which are expected to drive future growth and business development (BD) opportunities [10][51]. Summary by Sections Section 1: Transition from "Manufacturing" to "Innovation" - The policy reforms initiated in 2015 have stimulated a shift from generic to innovative drug development in China, with significant increases in R&D investment since 2018 [19][21]. - The number of First-in-Class (FIC) drugs developed in China has risen from 9 in 2015 to 120 in 2024, indicating a substantial increase in innovation [25][26]. Section 2: Continued BD Opportunities - PD-(L)1 plus is identified as a cornerstone for next-generation cancer treatments, with significant demand and potential for new products [51]. - The report notes that ADCs are transitioning towards more differentiated targets, focusing on unmet clinical needs, with promising candidates like PD-L1, DLL3, and EGFR [51]. - The GLP-1 market is experiencing rapid growth, with a focus on multi-target, oral, combination, and long-acting formulations [51]. Section 3: Investment Recommendations - For PD-(L)1 plus, companies such as Kangfang Biotech, Shansheng Pharmaceutical, and Junshi Biosciences are recommended for investment due to their strong pipelines [5]. - In the ADC space, companies like Fuhong Hanlin and Zai Lab are highlighted for their potential in addressing unmet clinical needs [5]. - In the GLP-1 sector, firms such as Borui Pharmaceutical and Zai Lab are noted for their promising developments [5].

信达生物日前注册一项有关IBI363的二期临床试验。该行认为试验反映公司对IBI363作为新一代免疫治 疗基石药物的信心，并有望扩大适应症范围。另外，行业数据显示，公司今年1至5月的销售同比增长 33%，保持强劲势头; 该行预期信达生物上半年收入将同比增长36%，并实现盈亏平衡。 智通财经APP获悉，瑞银发布研报称，将信达生物(01801)的目标价由105.1港元上调至120.1港元，维 持"买入"评级。假设IBI363有新适应症被纳入，将该药物在中国及全球的销售高峰预测分别上调至57亿 及203亿元人民币。 ...

信达生物日前注册一项有关IBI363的二期临床试验。该行认为试验反映公司对IBI363作为新一代免疫治 疗基石药物的信心，并有望扩大适应症范围。另外，行业数据显示，公司今年1至5月的销售同比增长 33%，保持强劲势头;该行预期信达生物上半年收入将同比增长36%，并实现盈亏平衡。 瑞银发布研报称，将信达生物(01801)的目标价由105.1港元上调至120.1港元，维持"买入"评级。假设 IBI363有新适应症被纳入，将该药物在中国及全球的销售高峰预测分别上调至57亿及203亿元人民币。 ...

瑞银发表研究报告指，信达生物日前注册一项有关IBI363的二期临床试验，反映公司对IBI363作为新一 代免疫治疗基石药物的信心，并有望扩大适应症范围。行业数据显示，公司今年1至5月的销售按增长 33%，保持强劲势头。该行预期信达生物上半年收入将按年增长36%，并实现盈亏平衡；目标价由105.1 港元上调至120.1港元，维持"买入"评级。假设IBI363有新适应症被纳入，将该药物在中国及全球的销售 高峰预测分别上调至57亿及203亿元。 ...

Group 1 - The core viewpoint of the article highlights the resurgence of the innovative drug sector, with significant stock price increases for companies like Weikang Pharmaceutical and Yuekang Pharmaceutical, indicating a positive market sentiment [1] - The pharmaceutical sector is experiencing a shift in policy attitudes, with optimization of centralized procurement rules, which is expected to benefit the industry [1] - After years of R&D investment, the pharmaceutical pipeline is entering a harvest phase, and there is an accelerating trend of overseas business development (BD) in the industry, showcasing the global competitiveness of China's innovative drugs [1] Group 2 - Zhongyin Securities suggests focusing on companies that are entering the realization or volume expansion phase, particularly those with overseas capabilities, such as Innovent Biologics, CanSino Biologics, and Eucure Biopharma [1] - The upcoming 2024 national medical insurance negotiations are anticipated to further impact the innovative drug field positively, creating opportunities for valuation reconstruction in the pharmaceutical sector [1]

1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report In Q2 2025, the Hong Kong stock market showed a V-shaped trend of sharp decline followed by recovery. The returns of various types of Hong Kong stock funds were positive, and the scale and share of Hong Kong stock funds increased. The stock positions and Hong Kong stock positions of Hong Kong stock funds increased slightly. In terms of heavy - position sectors, there were increases in medicine, finance, and technology, and a decrease in consumption. Among heavy - position stocks, pharmaceutical stocks showed obvious increases, while some Internet platform leaders declined. The scale of some fund companies increased significantly [3]. 3. Summary According to the Table of Contents 3.1 Hong Kong Stock Fund Performance and Scale Development - **Performance**: In Q2 2025, among the main indices tracked by Hong Kong stock funds, the Hang Seng Index and Hang Seng China Enterprises Index rose by 4.42% and 1.9% respectively, outperforming the CSI 300. The Hang Seng Technology Index fell by - 1.70%. The leading indices in terms of gains were the China Securities Hong Kong Stock Connect Innovative Drug Index (25.6%) and the China Securities Hong Kong Stock Connect Non - Banking Financial Index (21.8%). The average returns of various types of Hong Kong stock funds were positive, with "Hong Kong QDII - Active" leading with an average increase of 10.22% [3]. - **Scale and Share**: As of the end of Q2, the total scale of Hong Kong stock funds was 619.134 billion yuan, a quarter - on - quarter increase of 13.54 pct; the total share was 623.83 billion shares, a quarter - on - quarter increase of 7.45 pct. In Q2, the number of newly issued funds was 28, an increase from the previous quarter, but the newly issued scale was 7.517 billion yuan, lower than the previous quarter [3]. 3.2 Hong Kong Stock Fund Positioning Characteristics - **Stock and Hong Kong Stock Positions**: In Q2, the average stock position was 92%, a slight increase from the previous quarter. The stock position of index funds was higher than that of actively managed funds. The average Hong Kong stock position was 85%, an increase from the previous quarter, and the gap between index funds and actively managed funds narrowed in Q2 [3]. - **Heavy - Position Sector Allocation**: Technology (39%) and consumption (25%) ranked first and second in terms of proportion. The sectors with more increases were medicine (+2.27 pct), finance (+2.25 pct), and technology (+1.67 pct), while consumption (-5.97 pct) was significantly reduced [3]. - **Heavy - Position Stock Industry Distribution**: Media ranked first for four consecutive quarters, with a quarter - on - quarter increase of 0.66 pct in Q2; Commerce and Retail ranked second for four consecutive quarters, with a quarter - on - quarter decrease of 3.5 pct; Electronics became the third for two consecutive quarters, with a quarter - on - quarter increase of 0.88 pct. The sector with the highest quarter - on - quarter increase was Medicine and Biology, accounting for 12.42% and a quarter - on - quarter increase of 2.27 pct [3]. - **Individual Stock Level**: The "herding effect" of funds on leading stocks decreased. In terms of the number of funds holding heavy - position stocks, Xiaomi rose one place to become the third, and Sino Biopharmaceutical and Pop Mart entered the top 10 for the first time in four quarters. The concentration of heavy - position stocks decreased, and the proportion of large - cap stocks with a market value of over 80 billion yuan rose to 90% [3]. 3.3 Hong Kong Stock Fund Company Analysis - **Scale Ranking**: In Q2, the top 5 fund companies in terms of scale were Huaxia, E Fund, Fullgoal, GF, and ICBC Credit Suisse, and their total scales increased to varying degrees compared with the previous quarter. Huaxia's Hong Kong stock product scale exceeded 10 billion yuan, and ICBC Credit Suisse's scale increased by 35.45 pct quarter - on - quarter. Among the top 20, the most obvious expansion was by Huatai - PineBridge, with a quarter - on - quarter increase of 91.13 pct, rising four places to the seventh [3]. 3.4 Performance - Oriented Hong Kong Stock Fund Positioning Display and Quarterly Report Views - **Positioning Display**: Some actively managed Hong Kong stock funds in Q2 2025 held stocks that were among the top 50 in terms of gains, such as Rongchang Biologics, Sino Biopharmaceutical, and Innovent Biologics [54]. - **Quarterly Report Views**: Fund managers generally expressed optimism about the development prospects of sectors such as innovative drugs, new consumption, and technology Internet, and adjusted their investment strategies according to market conditions [57][58].

Core Insights - The innovative drug sector has seen significant growth this year, with the China Securities Hong Kong Stock Connect Innovative Drug Index rising over 124% since the beginning of the year, and the Shanghai Stock Exchange Sci-Tech Innovation Board Innovative Drug Index increasing over 80% [2][3] - There is a growing divergence in opinions among fund managers regarding the valuation of innovative drugs, with some expressing caution and suggesting profit-taking, while others remain optimistic about future growth [2][11] Fund Performance - As of July 29, 2023, 16 funds have reported returns exceeding 100%, all heavily invested in the innovative drug sector [5] - The fund managed by Zhang Wei, Huatai-PineBridge Hong Kong Advantage Selection, leads with a 139% return [5] - The total scale of funds focused on innovative drugs has increased from 111 billion yuan to 366 billion yuan this year, marking a growth of over 200% [5] Market Dynamics - The innovative drug sector has attracted significant investor interest, with the scale of the Huatai-PineBridge National Index Hong Kong Stock Connect Innovative Drug ETF rising from less than 700 million yuan to nearly 8 billion yuan in the first half of the year [5] - The innovative drug index has seen a net inflow of 172 billion yuan, making it one of the highest net buying sectors this year [5][6] Valuation Concerns - Some fund managers, like Wan Minyuan from Rongtong Fund, have raised concerns about the high valuations of A-share innovative drug stocks, suggesting that many companies may have reached their peak valuations [11][12] - There is a belief that the current market is experiencing a bubble, with excessive speculation on early-stage clinical drugs [11][12] Long-term Outlook - The innovative drug sector is viewed as a critical area for investment, with expectations of continued growth driven by technological advancements and supportive policies [10][14] - Fund managers emphasize the importance of selecting companies with strong technological capabilities and sustainable clinical value to navigate potential market volatility [2][14]

Group 1 - The overall market has seen significant growth in 2023, with 23 funds achieving over 100% returns year-to-date, predominantly in the pharmaceutical sector [1][3] - Among these, 17 funds are focused on innovative drugs, making up over 70% of the "doubling funds," with the top performers including 汇添富香港优势精选混合 (QDII) C at 139.12% [4][6] - Over the past year, a total of 134 funds have doubled their returns, with the top fund, 中信建投北交所两年定开混合 A, achieving a remarkable 207.48% return [4][5] Group 2 - The pharmaceutical sector remains a focal point for investment, with analysts optimistic about the innovative drug market and its potential for continued growth [6][7] - Key stocks in high-performing funds include 三生制药 and 科伦博泰生物-B, which have seen substantial price increases of 428.9% and 138% respectively [6][7] - The outlook for the third quarter suggests ongoing opportunities in the innovative drug space, driven by global collaborations and significant clinical data releases [6][7]