Sou Hu Cai Jing·2025-11-04 08:01Core Viewpoint - The A-share market experienced a volatile correction, particularly affecting the "Innovative Drug 20CM New Species" sector, with the ETF Huatai-PineBridge (589120) declining by 3.07% over two consecutive days, despite a net inflow of over 80 million yuan in the past five days, indicating continued optimism among investors [1][4][5]. Market Performance - The Huatai-PineBridge Innovative Drug ETF (589120) saw most of its constituent stocks decline, with notable drops including Baidu Tianheng down over 5% and Bory Pharmaceutical down over 4% [3]. - The ETF's trading volume exceeded 75 million yuan, with a closing premium rate of 0.15%, suggesting strong market sentiment despite the overall downturn [1][4]. Industry Trends - As the fourth quarter progresses, the innovative drug sector faces pressure due to reduced risk appetite among investors, although the long-term growth trend remains intact [4]. - Ongoing negotiations for the 2025 medical insurance directory are expected to catalyze growth in the innovative drug sector, with a significant increase in the number of drugs being submitted for approval [4][6]. Institutional Interest - Institutional investors continue to show strong enthusiasm for innovative drugs, with the proportion of biotech holdings in all funds increasing by 2.61 percentage points in Q3 2025 [5]. - The innovative drug sector is seen as a new growth curve for Chinese pharmaceutical companies, with traditional firms successfully transitioning to innovation [6]. Global Positioning - Chinese companies are making significant strides in international academic influence, with a notable increase in presentations at major conferences like ASCO and ESMO [7]. - The number and value of license-out transactions for innovative drugs have reached new highs, indicating a robust global market presence [7]. Future Outlook - The innovative drug sector is projected to continue its upward trajectory, supported by favorable policies, technological advancements, and increasing demand driven by an aging population [6][7]. - The market for innovative drugs is expected to grow significantly, with estimates suggesting a potential market size of 1.5 trillion USD by 2030, providing substantial opportunities for investment [7].