Group 1: ETF Market Overview - As of January 23, 2026, there are 1,419 ETFs in the Shanghai and Shenzhen markets, with a total asset management scale of 57,783.49 billion [2] - The breakdown includes 1,102 stock ETFs (35,709.89 billion), 53 bond ETFs (7,345.75 billion), 27 money market ETFs (1,548.63 billion), 17 commodity ETFs (3,081.67 billion), 208 cross-border ETFs (10,023.22 billion), and 12 unlisted ETFs (74.34 billion) [2] Group 2: Recent ETF Listings and Performance - From January 19 to January 23, 2026, eight new stock ETFs were listed, including two battery-themed ETFs and six others related to chip design [3] - Nine new ETFs were established during the same period, with a total issuance scale of 4.416 billion [3] - The median weekly return for stock ETFs was 0.88%, with the gold stock ETF showing the highest increase of 13.17%, while the semiconductor ETF experienced a decline of 3.86% [4] Group 3: PB-ROE Framework and Strategy - The PB-ROE framework categorizes industries into six quadrants, focusing on high PB and high ROE industries in the third quadrant and low PB and medium ROE industries in the fifth quadrant [5] - Backtesting from 2017 to February 2024 shows that only the third and fifth quadrants achieved excess returns, with annualized excess returns of 4.27% and 1.55%, respectively [5] - A combined PB-ROE ETF rotation strategy yielded an annualized return of 11.93% and an annualized excess return of 13.22%, with a cumulative return of 27.65% since 2023, outperforming the CSI 300 index by 6.19% [6][7] Group 4: Investment Recommendations - The report recommends focusing on the communication, agriculture, forestry, animal husbandry, fishery, and transportation sectors, corresponding to their respective industry ETFs [7] - Additionally, the report suggests attention to breeding ETFs, satellite ETFs, pharmaceutical ETFs, securities ETFs, and AI-themed ETFs for the upcoming week [9]

Investment Rating - The industry investment rating is maintained at "Overweight" [3] Core Insights - The medical consumables sector saw a weekly increase of 1.72%, outperforming the CSI 300 index by 0.23 percentage points [5][10] - The current PE ratio for the medical consumables sector is 37.73X, with a PB ratio of 2.71X, indicating a slight increase in valuation metrics compared to the previous week [6][18][20] Industry Performance - Over the past month, the medical consumables sector has shown a relative return of 9%, while the absolute return over the last 12 months is 22% [4] - The sector's performance is compared to other sub-sectors, with notable fluctuations in the medical and pharmaceutical industries [12] Industry Dynamics and Key Announcements - The 2026 National Health System Grassroots Health and Financial Work Conference emphasized the importance of strengthening basic medical services and expanding rehabilitation and nursing services, which is expected to drive demand for consumables [7][21] - The focus on grassroots healthcare institutions is anticipated to enhance the demand for consumables related to common and chronic diseases, as well as rehabilitation equipment [21] Investment Recommendations - The report suggests focusing on leading companies with strong cost control and innovation capabilities, particularly in the context of ongoing procurement normalization [8][23] - Companies with a diverse product line and strong market presence in high-value consumables, such as HuiTai Medical and MaiPu Medical, are highlighted as potential investment opportunities [8][23]

Investment Rating - The report maintains an "Overweight" rating for the in vitro diagnostics industry [4][54]. Core Views - The in vitro diagnostics industry is stabilizing due to policy and technological advancements, including the accelerated integration of AI in diagnostics, the implementation of price reforms, and the stabilization of centralized procurement impacts [4][54]. - The report highlights the importance of focusing on specific growth areas within the industry, such as chemiluminescence in immunodiagnostics and PCR in molecular diagnostics, with companies like YHLO and Shengxiang Bio being recommended for attention [4][54]. Summary by Sections Industry Performance - The pharmaceutical and biological sector decreased by 0.39%, while the in vitro diagnostics sector increased by 0.42% during the week [1][20]. - The in vitro diagnostics sector's PE ratio is currently at 40.90X, with a recent increase of 0.17X, and the PB ratio is at 1.87X, up by 0.01X from the previous week [3][30]. Key Developments - AI diagnostics are evolving from auxiliary tools to core components of clinical processes, enhancing diagnostic efficiency and driving industry modernization [4][54]. - The Chongqing Medical Insurance Bureau has introduced a price reform draft for pathological services, which is expected to enhance the value recognition of diagnostic services [4][54]. - The impact of centralized procurement is stabilizing, with price pressures gradually easing and testing volumes expected to stabilize following the unbundling of service packages [4][54]. Company Performance - Notable companies in the medical services sector include Aotai Bio (+7.9%), Saikexide (+4.5%), and Mingde Bio (+4.0%), while underperformers include Rejing Bio (-8.7%) and Botuo Bio (-3.3%) [2][25]. - The report suggests that the domestic biochemical diagnostics sector has largely overcome foreign constraints, indicating a completed localization process [4][54].

Investment Rating - The industry maintains an "Overweight" rating [9] Core Views - The report highlights the performance of the traditional Chinese medicine (TCM) sector, noting a 0.89% increase in the TCM II index, making it the second-best performing sub-sector in the pharmaceutical industry [3] - The report emphasizes the importance of the 2025 performance outlook and the progress of the essential drug catalog adjustments, with many companies showing positive profit growth [6] - The report suggests that the TCM industry may continue to experience structural differentiation, with companies focusing on external markets and innovation to find new growth points [6] Market Performance - The TCM II index closed at 6406.83 points, up 0.89% for the week, while the overall pharmaceutical index fell by 0.39% [3] - The best-performing companies in the TCM sector included *ST Changyao, ST Xiangxue, and Fangsheng Pharmaceutical, while the worst performers included Zhenbaodao and Pianzaihuang [3] Valuation - The TCM sector's PE (ttm) was 27.34X, up 0.23X week-on-week, with a PB (lf) of 2.3X, also showing a slight increase [4] - The PE is at the 28.89% percentile since 2013, while the PB is at the 5.74% percentile [4] Raw Material Market - The TCM raw material index rose by 1.1% due to increased demand for tonic herbs and price hikes in certain materials [5] - The overall market for TCM materials remains volatile, with a notable increase in demand for tonic herbs [5] Investment Suggestions - The report recommends focusing on three main investment themes: price governance, consumption recovery, and state-owned enterprise reform [7] - Specific investment targets include companies with strong R&D capabilities, those less affected by centralized procurement, and brands with strong market presence [13]

Investment Rating - The industry investment rating is maintained at "Overweight" [3][39] Core Views - The rare earth magnetic materials industry outperformed the market, with a price increase of 1.66% this week, surpassing the benchmark (CSI 300) by 2.28 percentage points [5][12] - The industry valuation (TTM P/E) has rebounded to 83.53x, currently at the 92.1% historical percentile [5][12] - Short-term adjustments are expected after a significant price increase in the industry chain, but medium to long-term demand remains stable [39] Summary by Sections Market Performance - The rare earth magnetic materials industry saw a relative return of 14% over one month, 5% over three months, and 74% over twelve months, with absolute returns of 16%, 7%, and 98% respectively [4] - The industry valuation has increased by 1.37x this week [5] Price Trends - Domestic light rare earth concentrate prices remained stable, while medium and heavy rare earth prices declined [6][9] - Prices for praseodymium and neodymium showed weak fluctuations, with praseodymium oxide prices decreasing by 0.37% [9][14] - Dysprosium and terbium prices were adjusted downwards due to insufficient downstream demand [9][18] Fundamental Changes - Supply-side growth is limited, with tight spot circulation and a positive long-term demand outlook [9][38] - The demand from downstream sectors, such as new energy vehicles, is experiencing marginal declines, while industrial trends remain generally positive [9][38] Valuation Perspective - Current absolute and relative historical valuation levels are supported by loose liquidity and favorable industrial policies [9][38] - The industry is expected to enter a phase of stable fluctuations in valuation due to regulatory constraints [39] Investment Recommendations - The report suggests maintaining an "Overweight" rating, focusing on upstream rare earth resource companies and downstream magnetic material companies with strong customer structures and growth potential [39][42]

Investment Rating - The report maintains a "Buy" rating for the medical services industry [5] Core Insights - The medical services sector has shown a decline of 2.17% this week, with a current PE ratio of 35.30X and a PB ratio of 3.58X, indicating a slight decrease from the previous week [3][27] - The J.P. Morgan Healthcare Conference highlighted an optimistic outlook for the CXO industry, transitioning from scale competition to value competition driven by advanced technology and global supply chains [4][59] - The report emphasizes the importance of supply chain resilience and innovative therapies as key growth drivers, particularly in the ADC CDMO sector [4][59] Summary by Sections Industry Performance - The pharmaceutical and biological sector declined by 0.39%, ranking 27th among 31 primary industries, while the Shanghai Composite Index fell by 0.62% [1][10] - The medical services sub-sector reported a significant drop, closing at 7280.46 points [21] Company Performance - Notable performers in the medical services sector include: - Nuohe Zhiyuan (+11.5%) - New Mileage (+9.4%) - Dean Diagnostics (+8.2%) - Underperformers include: - Boteng Co. (-6.9%) - Chengda Pharmaceutical (-6.6%) - WuXi AppTec (-6.4%) [2][24] Valuation Metrics - The medical services sector's PE ratio is currently at 35.30X, with a one-year maximum of 41.13X and a minimum of 28.46X; the PB ratio stands at 3.58X, with a maximum of 4.00X and a minimum of 2.48X [3][27] Investment Recommendations - The report suggests focusing on high-growth areas such as ADC CDMO and peptide CDMO within the pharmaceutical outsourcing services, recommending companies like WuXi AppTec, Haoyuan Pharmaceutical, and WuXi Biologics [5][61] - It also highlights potential improvements in profitability for third-party testing laboratories and consumer healthcare sectors, particularly in ophthalmology and dentistry [5][61]

Investment Rating - The industry rating is maintained at "Overweight" [7][35] Core Insights - The regulatory environment is expected to strengthen, focusing on substantial risks and enhancing regulatory efficiency through classification and grading methods. The application of regulatory technology, including big data and artificial intelligence, will significantly deepen [7][33] - The banking sector's transformation path is becoming clearer, with a focus on reducing and improving small and medium financial institutions, promoting differentiated competition, and aligning resources with key economic development areas [7][33] Summary by Sections Regulatory Developments - The National Financial Supervision Administration held a meeting emphasizing the importance of risk management and the progress made in reforming small and medium financial institutions in 2025. The meeting also highlighted the expansion and efficiency of urban real estate financing coordination mechanisms [6][31] - In 2026, efforts to resolve risks will continue, with a clear mandate to avoid "explosive" failures in the financial sector. The meeting proposed ongoing reforms for small and medium financial institutions and a focus on long-term mechanisms for risk management [7][33] Market Performance - The banking index fell by 2.70% during the period from January 19 to January 25, 2026, underperforming the CSI 300 index by 2.08 percentage points. The performance of large banks, joint-stock banks, city commercial banks, and rural commercial banks varied, with regional banks showing relatively better performance [11] Investment Recommendations - As risks in key areas gradually resolve, there is potential for valuation recovery in the banking sector. The stability of interest margins is expected to improve, and performance is showing signs of stabilization. In a low-interest-rate environment, the high dividend yield of bank stocks is highlighted as a key investment value. Recommendations include focusing on state-owned banks with stable asset deployment and joint-stock and regional banks with growth potential, such as Industrial and Commercial Bank of China, Bank of China, and others [9][35]

Investment Rating - The industry maintains a "Buy" rating [8] Core Insights - The real estate market is entering a traditional off-season, with expectations for increased policy support [5] - In major cities, the transaction volume for new homes has seen a significant decline compared to second-hand homes, indicating weaker demand [4] - The market anticipates that other first-tier cities will follow Beijing's lead in optimizing purchase restrictions after observing declining transaction data [5] Summary by Sections Core Cities - Beijing: Second-hand home daily transactions averaged 558 units (up 16.3% year-on-year), while new home transactions averaged 80 units (down 45% year-on-year) [2] - Shanghai: Second-hand home daily transactions averaged 609 units (up 10% year-on-year), with new home transactions remaining flat [2] - Shenzhen: Second-hand home daily transactions averaged 201 units (up 68% year-on-year), while new home transactions dropped 57% [3] National Key Cities - New home transaction volume in 30 major cities decreased by 38% year-on-year, while second-hand home transactions increased by 9.2% year-on-year, primarily due to a low base effect from the previous year [4] Investment Recommendations - The report suggests focusing on leading real estate companies with land reserves in core cities and high-end improvement products, such as Poly Developments [5] - It also highlights the potential for valuation recovery in leading intermediary firms as the proportion of second-hand home transactions continues to rise, citing companies like I Love My Home [5]

Investment Rating - The industry investment rating is maintained at "Overweight" [2][8]. Core Insights - The vaccine industry is undergoing a transformation from scale expansion to innovation-driven growth, facing short-term pain due to supply-demand imbalance and homogenized competition, but the long-term growth logic remains intact, driven by policy, demand, and technology [8][25]. - Recent developments in vaccine research and international expansion signal positive trends, with a shift in focus from child vaccination to a broader lifecycle approach due to demographic changes [3][7]. Summary by Sections Industry Performance - The vaccine sector has seen a relative performance decline of 25% over the past 12 months compared to the CSI 300 index, with absolute returns down by 2% [3]. - The vaccine index rose by 0.49% in the last week, while the overall pharmaceutical sector declined by 0.39% [4][5]. Company Developments - Huashan Vaccine received approval for clinical trials of its recombinant shingles vaccine [3]. - Kanghua Bio announced a projected net profit decline of 41.55%-52.09% for 2025, primarily due to decreased vaccine sales and market competition [3]. - Kexing Bio secured a two-year exclusive order for hepatitis A vaccine in Oman, marking a significant breakthrough in the Middle East market [3]. - Aimee Vaccine's 20-valent pneumococcal polysaccharide conjugate vaccine has been approved for clinical trials [3]. Market Dynamics - The industry is experiencing a shift in demand dynamics, with a notable decrease in newborn population affecting vaccine demand negatively, necessitating a re-evaluation of growth strategies [3][7]. - The vaccine sector's price competition is intensifying due to a high proportion of Me-too products, leading to significant price drops for some vaccines [7][22]. Valuation Metrics - The vaccine sector's PE (ttm) stands at 93.89X, with a PB (lf) of 1.82X, indicating a slight increase in valuation metrics compared to previous periods [6][18]. Investment Recommendations - The report suggests focusing on companies with strong innovation capabilities and differentiated product lines, particularly those with high technical barriers and international market strategies [8][25]. - Long-term investment opportunities are seen in companies that can leverage innovation and international expansion to navigate current market challenges [7][8].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - The report analyzes the market and ETF performance in the past week, and recommends industries and ETFs to focus on next week based on the PB - ROE framework and the ETF redemption sentiment indicator model [8][36] 3. Summary by Directory 3.1 Recent Market Overview (January 19 - 23, 2026) - Among the 31 Shenwan primary industries, 24 rose and 7 fell. The top three gainers were building materials (up 9.23%), petroleum and petrochemicals (up 7.71%), and steel (up 7.31%); the top three losers were banks (down 2.70%), communications (down 2.12%), and non - bank finance (down 1.45%) [4][11] - The Shanghai Composite Index closed at 4136.16, up 0.84% for the week; the Shenzhen Component Index closed at 14439.66, up 1.11% for the week; the ChiNext Index closed at 3349.50, down 0.34% for the week; the Beixin 50 Index closed at 1588.66, up 2.60% for the week; the Hang Seng Index closed at 26749.51, down 0.36% for the week. The average daily trading volume of the Shanghai and Shenzhen stock markets was 27727.12 billion yuan, and the total trading volume for the week was 13.86 trillion yuan [11] - Main funds had net outflows on 4 trading days and net inflows on 1 trading day, with a total net outflow of 125.207 billion yuan for the week. The industries with more net inflows of main funds were banks, non - bank finance, and non - ferrous metals; the industries with more net outflows were electronics, communications, and computers [4][11] 3.2 Recent ETF Market Performance (January 19 - 23, 2026) 3.2.1 Stock - type ETFs - 8 new stock - type ETFs were listed, including 2 battery ETFs and 6 other stock - type ETFs. 9 new ETFs were established, including 2 Shanghai - STAR Market chip ETFs and 7 other ETFs, with a total issuance scale of 4.416 billion yuan [5][18] - The median weekly increase or decrease of stock - type ETFs was 0.88%. Gold stock ETFs and photovoltaic leading ETFs performed well, with gold stock ETFs rising the most (13.17%); science and innovation semiconductor ETFs and financial real - estate ETFs performed poorly, with science and innovation semiconductor ETFs falling the most (3.86%) [5][21] - The average weekly share change of stock - type ETFs was a decrease of 51.8174 million shares. Chemical ETFs and power grid equipment ETFs had more share increases, with chemical ETFs increasing the most (6.316 billion shares); CSI 300ETF and SSE 50ETF had more share decreases, with Huatai - Ber瑞 CSI 300ETF decreasing the most (15.345 billion shares) [21] 3.2.2 Bond - type ETFs - The median weekly increase or decrease of 53 bond - type ETFs was 0.11%. Convertible bond ETFs had the highest increase (2.94%), and treasury bond ETFs had the lowest increase (0.01%). As of January 23, 2026, the scale of Haifutong CSI Short - term Financing ETF (511360.SH) was the largest, at 70.223 billion yuan [24] 3.2.3 Cross - border ETFs - The median weekly increase or decrease of cross - border ETFs was - 0.66%. The Brazilian ETF and the S&P Biotechnology ETF had high increases or decreases, with the Brazilian ETF rising the most (7.63%); the Hong Kong Stock Connect Innovative Drug ETF and the Hong Kong Innovative Drug ETF had low increases or decreases, with the Hong Kong Stock Connect Innovative Drug ETF falling the most (3.94%) [26] - Since the beginning of the year, the median increase or decrease of cross - border ETFs has been 3.84%. The China - South Korea Semiconductor ETF and the Hong Kong Medical ETF had high increases, with the China - South Korea Semiconductor ETF rising 23.87%; the Nasdaq ETF and the Nasdaq Technology ETF had high decreases, with the Nasdaq Technology ETF falling 2.79% [26] 3.3 PB - ROE Framework - based ETF Rotation Strategy Tracking - The strategy focuses on the communications, agriculture, forestry, animal husbandry, and fishery, and transportation industries, corresponding to their respective industry ETFs. This week, the strategy's cumulative return was 1.29%, the CSI 300 Index's cumulative return was - 0.62%, and the strategy's cumulative excess return relative to the CSI 300 Index was 1.91% [7][31] - Since 2023, the strategy's cumulative return has been 27.65%, the CSI 300's cumulative return has been 21.46%, and the strategy's cumulative excess return relative to the CSI 300 Index has been 6.19% [7][33] - Since 2022, the strategy's cumulative return has been 9.16%, the CSI 300's cumulative return has been - 4.81%, and the strategy's cumulative excess return relative to the CSI 300 Index has been 13.98% [35] 3.4 Investment Recommendations - Based on industry PB - ROE and supplementary indicators, the PB - ROE framework - based ETF rotation strategy recommends focusing on the communications, agriculture, forestry, animal husbandry, and fishery, and transportation industries next week, corresponding to their respective industry ETFs [8][36] - According to the ETF redemption sentiment indicator model, it is recommended to focus on breeding ETFs, satellite ETFs, pharmaceutical ETFs, securities ETFs, and science and innovation AI ETFs next week [8][36]