Core Viewpoint - The innovative pharmaceutical sector is experiencing a resurgence, driven by improved fundamentals, supportive policies, and increased market interest, particularly in the A-share and Hong Kong markets [1][3][12]. Group 1: Market Performance - The pharmaceutical sector has shown strong performance this year, with a notable rebound starting from April 9, despite recent pullbacks [1]. - The innovative drug segment in A-shares and Hong Kong stocks has continued to strengthen, indicating a recovery after four years of adjustment [1][3]. - The total amount of business development (BD) transactions for innovative drugs is projected to rise significantly, from $8.4 billion in 2020 to $51.9 billion in 2024 [4]. Group 2: Policy and Industry Trends - The policy environment has shifted from cost control to encouraging innovation, providing strong support for the development of innovative drugs [3]. - The number and quality of innovative drug products in China have significantly improved, leading to increased interest from foreign pharmaceutical companies [3][5]. - The penetration rate of innovative drugs in China is expected to rise, with current levels at around 20%, compared to 70%-80% in the U.S. [5]. Group 3: Investment Opportunities - Fund managers are optimistic about the future of innovative drugs, emphasizing the importance of technology and growth attributes in the sector [6]. - Investment strategies include focusing on high-quality companies, innovative drug leaders, and traditional pharmaceutical companies transitioning to innovative drugs [7][8][9]. - Investors can consider actively managed pharmaceutical funds or industry-themed ETFs to gain exposure to the innovative drug market [10][12]. Group 4: Fund Performance - Several funds managed by 工银瑞信 have demonstrated strong performance, ranking highly in their respective categories over various time frames [13][15]. - The 工银港股通创新药ETF has seen significant inflows, reflecting market preference for innovative drug companies [11].

Core Insights - The core viewpoint of the news is the performance and holdings of the Industrial and Commercial Bank of China (ICBC) Healthcare Stock Fund, highlighting its recent net value, returns, and top holdings [1]. Fund Performance - The latest net value of ICBC Healthcare Stock Fund is 2.5760 yuan, reflecting a growth of 1.18% - The fund's return over the past month is -0.46%, ranking 514 out of 1026 in its category - Over the last six months, the fund has achieved a return of 11.85%, ranking 173 out of 993 - Year-to-date, the fund has returned 13.03%, ranking 137 out of 997 [1]. Fund Holdings - The top ten holdings of the ICBC Healthcare Stock Fund account for a total of 39.79%, with the following key positions: - Heng Rui Medicine: 8.90% - WuXi AppTec: 5.12% - Aier Eye Hospital: 4.94% - BeiGene: 3.77% - Zai Lab: 3.52% - New Horizon Health: 3.27% - Mindray Medical: 2.80% - Yuyue Medical: 2.76% - United Imaging Healthcare: 2.47% - Innovent Biologics: 2.24% [1]. Fund Management - The ICBC Healthcare Stock Fund was established on November 18, 2014, and as of March 31, 2025, it has a total scale of 2.724 billion yuan - The fund is managed by Zhao Bei and Ding Yang, with Zhao having extensive experience in healthcare research and fund management [2].

Core Viewpoint - ICBC Medical Care Stock (000831) has experienced a decline of 1.27% on June 19, with a latest net value of 2.56 yuan, marking a cumulative drop of 7.84% over five consecutive trading days [1] Group 1: Fund Performance - The fund was established in November 2014, with a total scale of 2.724 billion yuan and a cumulative return of 156.40% since inception [1] - As of the end of 2024, institutional investors hold 0.41 million shares, accounting for 3.55% of total shares, while individual investors hold 11.19 million shares, making up 96.45% of total shares [1] Group 2: Fund Management - Current fund manager Zhao Bei has a master's degree and has been with ICBC Credit Suisse since 2010, serving as the fund manager since November 18, 2014 [2] - The current fund manager Ding Yang holds a doctoral degree and joined ICBC Credit Suisse in December 2017, taking over as fund manager on May 5, 2023 [2] Group 3: Portfolio Holdings - As of March 31, 2025, the top ten holdings of ICBC Medical Care Stock account for a total of 39.79%, with major positions including: - Heng Rui Medicine (8.90%) - WuXi AppTec (5.12%) - Aier Eye Hospital (4.94%) - BeiGene (3.77%) - Zai Lab (3.52%) - New Horizon Health (3.27%) - Mindray Medical (2.80%) - Yuwell Medical (2.76%) - United Imaging Healthcare (2.47%) - Innovent Biologics (2.24%) [3]

Group 1 - The China Securities Regulatory Commission (CSRC) Chairman announced plans to enhance the STAR Market's demonstration effect, including the establishment of a STAR Market Growth Tier and the reintroduction of the fifth listing standard for unprofitable companies [1] - The STAR Market Growth ETF (588110) saw a strong increase of 1.20% as of June 18, 2025, with notable gains in constituent stocks such as Shengyi Electronics (688183) up 16.63% and Tiande Yu (688252) up 9.28% [1] - The STAR Market Growth ETF has experienced a significant increase in trading volume, with a turnover rate of 4.74% and a daily average transaction of 15.45 million yuan over the past week [1] Group 2 - The STAR Market Growth ETF has achieved a net value increase of 38.29% over the past year, ranking 185 out of 2854 index equity funds, placing it in the top 6.48% [2] - The ETF's highest monthly return since inception was 25.02%, with an average monthly return of 7.25% during the months it increased [2] Group 3 - The management fee for the STAR Market Growth ETF is 0.50%, and the custody fee is 0.10%, making it one of the lowest in its category [3] - The STAR Market Growth Index consists of 50 high-growth companies selected based on revenue and net profit growth rates, reflecting the overall performance of high-growth stocks on the STAR Market [3] - The top ten weighted stocks in the STAR Market Growth Index account for 53.67% of the index, including companies like Haiguang Information (688041) and Hengen Technology (688608) [3] Group 4 - The introduction of new indices in the STAR Market is positively impacting domestic index investment development by enriching the investment target pool and providing more diverse underlying assets for ETFs [4] - The emergence of thematic and industry indices is guiding investors to accurately allocate resources in emerging industries, enhancing the capital market's effectiveness in serving new productive forces [4]

Core Insights - The "Eight Articles" of the Sci-Tech Innovation Board have revitalized the capital market ecosystem, with significant growth in M&A activities and IPOs for unprofitable companies [1] - Since the release of the "Eight Articles," there have been 106 new M&A transactions on the Sci-Tech Innovation Board, with 60 completed and a total transaction value exceeding 140 billion yuan [1] - Institutional innovations are strengthening the connection between "hard tech" companies and the capital market, enhancing the flexibility of capital to promote technological advancements [1] Group 1: Company Responses to "Eight Articles" - Baili Tianheng's chairman highlighted that the "Eight Articles" have deepened reforms and increased support for high-quality development of unprofitable companies, allowing for successful IPOs even before profitability [1] - Jinghe Integrated's chairman noted that the "Eight Articles" have improved financing efficiency and innovation mechanisms, enabling the company to issue 2 billion yuan in technology innovation bonds [2] - Chip Origin's chairman mentioned that the "Eight Articles" support refinancing for R&D, allowing the company to accelerate its strategic layout in Chiplet technology [3] Group 2: Recommendations for Future Reforms - Tianyue Advanced's chairman expressed the need for more long-term capital to focus on outstanding Sci-Tech Innovation Board companies and suggested enhancing the inclusivity of capital operations for hard tech companies [7] - Du Jinhao from Ailis proposed increasing liquidity by attracting more long-term funds and promoting international connectivity for quality Sci-Tech enterprises [7] - The emphasis on improving corporate governance and enhancing profitability through cash dividends was also highlighted as a key area for development [4]

Group 1 - The core viewpoint highlights a strong performance in the Chinese innovative pharmaceutical sector, with the Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index rising by 2.72% as of June 12, 2025, driven by significant gains in constituent stocks such as Rongchang Bio (+17.55%) and BeiGene (+8.00%) [1] - A total of 53 new drugs were approved in China from the beginning of 2025 to the end of May, including 30 domestic innovative drugs and 23 imported ones, covering various therapeutic areas such as oncology and rare diseases [1] - The Chinese innovative drug market is projected to reach nearly 550 billion RMB in 2024, with an expected explosive growth driven by business development (BD) revenues from 2025 to 2027, and is anticipated to exceed 2 trillion RMB by 2030 [1] Group 2 - The Sci-Tech Innovation Board Biopharmaceutical Index consists of 50 large-cap companies from various sectors, including biopharmaceuticals and biomedical engineering, reflecting the overall performance of representative companies in the industry [2] - As of May 30, 2025, the top ten weighted stocks in the index accounted for 51.6% of the total index weight, with companies like United Imaging Healthcare and BeiGene among the leading constituents [2]

Core Viewpoint - The performance of the Sci-Tech Innovation Pharmaceutical Index ETF has shown significant growth in both trading volume and scale, indicating strong investor interest and confidence in the sector [3][5][6]. Liquidity - The Sci-Tech Innovation Pharmaceutical Index ETF had an intraday turnover of 9.12%, with a transaction volume of 20.17 million yuan. Over the past week, the average daily transaction volume reached 50.98 million yuan, ranking first among comparable funds [3]. Scale - In the past year, the Sci-Tech Innovation Pharmaceutical Index ETF's scale increased by 143 million yuan, achieving notable growth and ranking first among comparable funds [3]. Shares - The ETF's shares grew by 120 million in the past year, also ranking first among comparable funds [3]. Top Holdings - As of May 30, 2025, the top ten weighted stocks in the Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index accounted for 51.6% of the total weight. The leading stocks include: - United Imaging Healthcare (8.97%) - BeiGene (7.05%) - Huaitai Medical (5.85%) - Aierx (4.91%) - Baillie Tianheng (4.77%) - Zai Lab (4.75%) - BGI Genomics (4.17%) - Junshi Biosciences (4.15%) - Aibo Medical (3.33%) - Teva Biopharma (3.25%) [5]. Market Response - Following the American Society of Clinical Oncology (ASCO) annual meeting, there has been a positive market response, highlighting the competitiveness and innovation of Chinese pharmaceutical companies in new drug development [5][6]. Innovation Pipeline - The proportion of domestic companies' innovative drug data presented at ASCO has been increasing, with 73 studies selected for oral presentations in 2025, indicating a strong focus on innovation within the industry [6]. Investment Opportunities - Investors without stock accounts can access opportunities in the Sci-Tech Innovation Board biopharmaceutical sector through the Sci-Tech Biopharmaceutical ETF linked fund (021061) [6].

Group 1: Liquidity and Performance of Sci-Tech Pharmaceutical Index ETF - The Sci-Tech Pharmaceutical Index ETF had a turnover rate of 16.48% during the trading session, with a transaction volume of 37.98 million yuan, indicating active market trading [2] - Over the past week, the average daily transaction volume of the ETF reached 48.92 million yuan, ranking first among comparable funds [2] - In the past year, the ETF's scale increased by 154 million yuan, achieving significant growth and ranking first in new scale among comparable funds [2] - The ETF's shares grew by 130 million units in the past year, also ranking first in new shares among comparable funds [2] - As of June 10, the net value of the ETF increased by 25.51% over the past year [2] - The highest monthly return since inception was 23.29%, with the longest consecutive monthly gains being 4 months and a maximum increase of 21.76% [2] - The average monthly return during the rising months was 8.18%, with a historical one-year profit probability of 69.81% [2] Group 2: Market Trends and Investment Opportunities - The Central Committee of the Communist Party of China and the State Council issued opinions to improve the basic medical insurance drug catalog adjustment mechanism and to develop a commercial health insurance innovative drug catalog [3] - A report from Dongwu Securities indicated that there were 73 oral presentations from China at the 2025 ASCO, marking a historical high, with 89 out of 184 ADC pipeline studies coming from China, accounting for approximately 48.4% of the total [3] - The agency believes that the competitiveness of domestic innovative drugs in the global market is continuously improving, and international investors' confidence in Chinese innovative drug companies is increasing [3] - Domestic innovative drugs are transitioning from "catching up" to "leading," presenting significant investment opportunities [3] - Investors without stock accounts can access the Sci-Tech Biopharmaceutical ETF linked fund (021061) to capitalize on opportunities in the Sci-Tech Board biopharmaceutical sector [3]

Group 1 - The core viewpoint of the news is the performance and holdings of the Industrial and Commercial Bank of China Medical Healthcare Stock Fund, which has shown positive returns in various time frames [1] - The latest net value of the fund is 2.7270 yuan, with a growth of 1.79% [1] - The fund's performance over the past month has yielded a return of 8.91%, ranking 96 out of 1025 in its category [1] - Over the last six months, the fund has achieved a return of 13.01%, ranking 146 out of 989 [1] - Year-to-date, the fund has returned 19.66%, ranking 96 out of 999 [1] Group 2 - The top ten holdings of the fund account for a total of 39.79%, with significant positions in companies such as Heng Rui Pharmaceutical (8.90%) and WuXi AppTec (5.12%) [1] - The fund was established on November 18, 2014, and as of March 31, 2025, it has a total scale of 2.724 billion yuan [1] - The fund is managed by Zhao Bei and Ding Yang, both of whom have extensive experience in the healthcare sector [2]

Investment Rating - Investment Rating: Positive [2] Core Insights - The pharmaceutical and biotechnology industry index increased by 3.36%, ranking 6th among 31 primary industries, outperforming the CSI 300 index, which decreased by 0.21% [5][17] - The valuation of the pharmaceutical and biotechnology industry as of June 6, 2025, is 28.24x (TTM, excluding negative values), up from 27.60x in the previous period, indicating an upward trend but still below the average [5][23] - Notable sub-industry performance includes chemical preparations and other biological products, with increases of 5.77% and 4.68% respectively, while offline pharmacies saw a decline of 1.15% [5][17] Industry Review - The report highlights three major investment opportunities: 1) Companies with dual-antibody/multi-antibody technology platforms that have differentiated target design capabilities and clinical advancement efficiency are likely to attract international giants [9] 2) Areas with unmet clinical needs, such as advanced liver cancer and non-small cell lung cancer, are promising for dual-antibody therapy development [9] 3) Potential license-out candidates, as domestic innovative pharmaceutical companies continue to engage in global collaborations [9] Important Industry News - CDE launched the "Star Plan" to encourage the development of pediatric anti-cancer drugs, addressing significant unmet clinical needs in this area [7][32] - Alcon's dry eye medication "Tryptyr" received FDA approval, marking it as the first of its kind globally [39] - Hansoh Pharmaceutical's third-generation EGFR-TKI "Amivantamab" was approved in the UK for first-line treatment of NSCLC, becoming the first domestically developed EGFR-TKI approved overseas [42] - BMS and BioNTech entered a collaboration for the dual-antibody candidate BNT327, with an upfront payment of $1.5 billion and potential milestone payments of $7.6 billion [51] Company Dynamics - Stone Pharmaceutical is negotiating three potential deals totaling $5 billion, involving several products including EGFR ADCs [49] - BMS's "Rotecip" was approved for treating lower-risk myelodysplastic syndromes, marking a significant innovation in this therapeutic area [45] - AbbVie’s JAK inhibitor "Upadacitinib" was approved for treating giant cell arteritis, becoming the first approved treatment for this condition in China [48]