Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - From July 14 - 18, 2025, the A - share market continued to rise, with the Shanghai Composite Index up 0.69%, the CSI 300 up 1.09%, the ChiNext Index up 3.17%, and growth style outperforming value style. Sectors such as optical modules, innovative drugs, and rare earths led the gains [1][12]. - Policy game may intensify. The July Politburo meeting is approaching, and "anti - involution" measures have become the focus, which may drive market enthusiasm in the short term [2][12]. - The technology chain has many catalysts. The AI industry is still in a high - prosperity stage, with the domestic model iteration accelerating and narrowing the gap with overseas advanced models. The restart of large companies' computing power expenditure may drive the computing power infrastructure and the entire AI industry chain [3][13]. - The valuation of innovative drugs is ahead. The valuation of innovative drugs is significantly advanced, making it difficult to make investment decisions based on company performance tracking. If future liquidity remains abundant, attention should be paid to the diversion effect of other thematic sectors [3][14]. - The China Securities A500 Free Cash Flow Index was officially launched on July 16, 2025, which provides a differentiated index selection [15]. Summary by Relevant Catalogs 1. Weekly Market Observation 1.1. Equity Market Review and Observation - **Market Performance**: From July 14 - 18, 2025, the A - share market continued to rise. The Shanghai Composite Index rose 0.69%, the CSI 300 rose 1.09%, the CSI 500 rose 1.20%, and the ChiNext Index rose 3.17%. The average daily trading volume of A - shares was 1546.2 billion, showing a month - on - month increase [12]. - **Policy and Economic Situation**: In the second - quarter economic data, although domestic demand indicators such as consumption and investment declined in June, the strong production side drove the GDP to grow by 5.2% year - on - year in the second quarter. The Central Urban Work Conference focused on old - city renovation and urban village renewal. The July Politburo meeting is approaching, and "anti - involution" measures may drive short - term market enthusiasm [12]. - **Technology Chain Catalysts**: In the technology chain, especially in the AI field, there were many positive events last week. The approval of the H20 chip for sale in China, the release of the Kimi K2 model, and the launch of ChatGPT Agent all indicate that the AI industry is in a high - prosperity stage. The restart of large companies' computing power expenditure may drive the industry chain [13]. - **Innovative Drugs**: The 11th batch of centralized procurement of drugs was announced, and the new rules left room for innovation. The valuation of innovative drugs is significantly advanced, and attention should be paid to the diversion effect of other sectors [14]. 1.2. Public Fund Market Dynamics - The China Securities A500 Free Cash Flow Index was officially launched on July 16, 2025. It selects 50 listed company securities with high free cash flow rates from the CSI A500 Index samples to reflect the performance of companies with strong cash - generating capabilities. It provides a differentiated index selection [15][16]. 2. Active Equity Fund Index Performance Tracking | Index Classification | Last Week | Last Month | Year - to - Date | Since Inception | | --- | --- | --- | --- | --- | | Strategy and Thematic | Active Equity Fund Selection | 3.42% | 6.55% | 14.46% | 15.39% | | Investment Style | Value Equity Fund Selection | 0.81% | 2.94% | 6.45% | 6.53% | | | Balanced Equity Fund Selection | 3.61% | 7.42% | 11.87% | 9.42% | | | Growth Equity Fund Selection | 4.96% | 9.19% | 22.90% | 11.85% | | Industry Thematic | Pharmaceutical Equity Fund Selection | 9.79% | 16.18% | 46.28% | 26.72% | | | Consumption Equity Fund Selection | - 1.42% | 1.34% | 8.82% | 1.81% | | | Technology Equity Fund Selection | 4.92% | 9.57% | 17.07% | 18.91% | | | High - end Manufacturing Equity Fund Selection | 4.14% | 8.82% | 7.49% | 2.30% | | | Cyclical Equity Fund Selection | 0.66% | 3.37% | 12.54% | 4.59% | Each sub - index has its own positioning and performance benchmark: - **Active Equity Fund Selection**: Select 15 funds each period, with equal - weight allocation. The core positions select funds based on performance competitiveness and style stability, and the style allocation is balanced according to the CSI Active Stock Fund Index. The performance benchmark is the Active Equity Fund Index (930980.CSI) [18]. - **Value Equity Fund Selection**: Select 10 funds with deep - value, quality - value, and balanced - value styles. The performance benchmark is the CSI 800 Value Index (H30356.CSI) [20]. - **Balanced Equity Fund Selection**: Select 10 relatively balanced and value - growth style funds. The performance benchmark is the CSI 800 (000906.SH) [20][22]. - **Growth Equity Fund Selection**: Select 10 growth - style funds. The performance benchmark is the 800 Growth Index (H30355.CSI) [23]. - **Pharmaceutical Equity Fund Selection**: Select 15 funds with a high proportion of pharmaceutical industry holdings. The performance benchmark is the Pharmaceutical Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [24][27][28]. - **Consumption Equity Fund Selection**: Select 10 funds with a high proportion of consumption - related industry holdings. The performance benchmark is the Consumption Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [28]. - **Technology Equity Fund Selection**: Select 10 funds with a high proportion of technology - related industry holdings. The performance benchmark is the Technology Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [31]. - **High - end Manufacturing Equity Fund Selection**: Select 10 funds with a high proportion of high - end manufacturing industry holdings. The performance benchmark is the High - end Manufacturing Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [31]. - **Cyclical Equity Fund Selection**: Select 5 funds with a high proportion of cyclical industry holdings. The performance benchmark is the Cyclical Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [36].

Investment Rating - The investment rating for the industry is "Positive" and the rating has been maintained [2] Core Insights - The pharmaceutical and biotechnology industry index increased by 5.89%, ranking third among 31 primary industries, outperforming the CSI 300 index which rose by 1.92% [5][17] - The sub-industries of medical research outsourcing and chemical preparations saw significant gains of 13.94% and 8.43% respectively, while offline pharmacies experienced a decline of 3.91% [5][17] - As of July 18, 2025, the overall PE (TTM) for the pharmaceutical and biotechnology industry is 30.09x, up from 28.52x in the previous period, indicating an upward trend in valuation but still below the average [6][22] - The top three sub-industries by PE (TTM) are vaccines (57.37x), hospitals (37.75x), and other biological products (36.95x), while pharmaceutical circulation has the lowest valuation at 15.84x [6][22] Industry Review - The report highlights that 37 listed companies in the pharmaceutical and biotechnology sector experienced a net reduction in shareholder holdings amounting to 2.182 billion yuan, with 4 companies increasing their holdings by 145 million yuan and 33 companies reducing theirs by 2.328 billion yuan [6] Important Industry News - The National Medical Products Administration (NMPA) approved the BCL-2 inhibitor "Lisatinib" for market entry, marking it as the first domestic product of its kind [8] - The NMPA also approved "Recombinant Human Albumin Injection (Rice)" as the first of its kind in China [8] - The eleventh batch of national procurement rules has been optimized, significantly reducing policy uncertainty for innovative drugs [9] Investment Recommendations - The report suggests continued attention to pharmaceutical companies with innovative capabilities and those with high-end and cost advantages in generic drugs, especially in light of the optimized procurement rules that favor high-quality production and cost-effective generics [9]

Core Viewpoint - The A-share market continues to rise, with growth style outperforming value style, driven by sectors such as optical modules, innovative drugs, and rare earths [2][15]. Group 1: Equity Market Review and Observation - The A-share market saw the Shanghai Composite Index rise by 0.69%, the CSI 300 by 1.09%, and the ChiNext Index by 3.17% during the week of July 14-18, 2025 [2][15]. - The average daily trading volume in the A-share market increased to 15,462 billion [15]. - The upcoming Politburo meeting is expected to focus on "anti-involution" measures, which may sustain market interest in the short term [3][15]. - The AI industry remains in a high prosperity phase, with domestic model iterations accelerating, potentially boosting the entire AI industry chain [3][16]. - The innovative drug sector is experiencing significant valuation pre-positioning, making it challenging to track investment decisions through company performance [3][18]. Group 2: Public Fund Market Dynamics - The China Securities Index Co., Ltd. announced the launch of the CSI A500 Free Cash Flow Index on July 16, 2025, which will include 50 companies with high free cash flow rates [4][19]. - Free cash flow is a critical indicator of a company's financial health, focusing on firms with stable operations and cash generation capabilities [19]. Group 3: Active Equity Fund Index Performance Tracking - The Active Equity Fund Selection Index rose by 3.42% last week, achieving a cumulative excess return of 12.16% since inception [5][20]. - The Growth Stock Selection Index increased by 4.96%, with a cumulative excess return of 18.83% since inception [8][20]. - The Pharmaceutical Stock Selection Index surged by 9.79%, with a cumulative excess return of 23.77% since inception [9][20]. - The Technology Stock Selection Index rose by 4.92%, achieving a cumulative excess return of 17.21% since inception [11][20].

Group 1 - The report highlights that the technology sector is leading the equity market, with the Nasdaq index reaching new highs driven by the seven major tech companies in the US, and significant performance in the domestic AI industry chain [3][10] - The overall net inflow of ETF funds for the week was 56.236 billion, with notable inflows in cross-border and bond ETFs, while stock, commodity, and money market ETFs experienced net outflows [11][20] - The report indicates that the bond ETF market is seeing strong demand, particularly for the Sci-Tech bond ETF, which had a net inflow of 66.8 billion, contributing significantly to the overall growth [11][20] Group 2 - The top-performing stock ETFs are focused on innovative pharmaceuticals and AI-related sectors, with significant interest in indices such as the ChiNext AI and Cloud Computing 50 [16][18] - Despite an overall net outflow in stock ETFs, there is a notable reverse trend in certain themes, particularly in sectors like animation and gaming, which saw inflows [17][19] - The bond ETF indices are performing well, with the convertible bond ETF index showing a weekly increase of 0.46%, and credit bonds continuing to attract capital with a net inflow of 68.562 billion this week [20][23] Group 3 - The financing analysis indicates that the top ten ETFs by net buy amount are concentrated in themes such as AI, convertible bonds, and innovative pharmaceuticals, reflecting market enthusiasm for these strong sectors [25]

Core Viewpoint - The pharmaceutical industry is undergoing a profound transformation from "following innovation" to "source breakthrough," driven by new quality productivity and technological innovation [2][12]. Company Overview - Guangdong Zhongsheng Pharmaceutical Co., Ltd. was established in 1979 and listed on the Shenzhen Stock Exchange in December 2009, with stock code 002317 [4]. - The company integrates drug research and development, production, and sales, positioning itself as one of China's top 100 pharmaceutical companies [4]. - Zhongsheng Pharmaceutical focuses on high-quality products and services, with a product portfolio covering major disease areas such as cardiovascular, respiratory, ophthalmology, and digestion [4]. Innovation and Product Development - The company has established a development strategy centered on traditional Chinese medicine, innovation, and focusing on specialty areas, with core products including the Compound Thrombus Tong series and Brain Thrombus Tong capsules [4]. - Zhongsheng is the only domestic company with innovative drugs for both COVID-19 and influenza, having successfully launched the first peptide 3CL single-agent antiviral drug for COVID-19 and the first RNA polymerase PB2 protein inhibitor for influenza [4][8]. - The company has invested in innovative drug development, with two new drugs launched recently, including the innovative drug for treating adult influenza, which was approved in May [8]. Digital Transformation - The company is investing 300 million yuan in its subsidiary to create a smart, digital, and intensive traditional Chinese medicine extraction workshop [9]. - Advanced technologies such as cloud computing, big data, artificial intelligence, and IoT are being utilized to enhance the entire pharmaceutical supply chain [7][9]. Sustainable Development Strategy - Zhongsheng emphasizes the coordination between traditional and emerging businesses, proposing a sustainable development structure that includes innovative drugs as the leading force, traditional Chinese medicine as the foundation, and chemical generics as support [10]. - The company has maintained a research and development investment of over 8% of its revenue annually since 2010, with recent years exceeding 10% [12]. Industry Trends - The core of new quality productivity in the biopharmaceutical industry lies in technological innovation and the transformation of results [6]. - The industry is expected to evolve towards innovation-driven and high-quality growth, supported by policy, market changes, and technological advancements [6].

Investment Rating - The report maintains a "Recommended" investment rating for the healthcare sector [7]. Core Insights - The pharmaceutical sector outperformed the CSI 300 index, with the Shenwan Pharmaceutical and Biological Index rising by 4.00% from July 14 to July 18, 2025, surpassing the CSI 300 by 2.91 percentage points [2][12]. - Year-to-date, the Shenwan Pharmaceutical and Biological Index has increased by 16.59%, outperforming the CSI 300 by 13.45 percentage points, ranking third among 31 Shenwan primary industry indices [2][13]. - As of July 18, 2025, the valuation of the pharmaceutical sector stands at 29.88 times (TTM overall method, excluding negative values), with a premium of 153.54% compared to the CSI 300 [2][17]. Summary by Sections 1. Weekly Market Review - The pharmaceutical sector's performance from July 14 to July 18, 2025, showed a 4.00% increase, ranking second among 31 industry indices [2][12]. - The sector's valuation as of July 18, 2025, is 29.88 times, with a significant premium over the CSI 300 [2][17]. - Top-performing stocks included Borui Pharmaceutical (+42.35%), Lisheng Pharmaceutical (+41.68%), and Nanxin Pharmaceutical (+34.95%) [3][18]. 2. Important Events - On July 15, the National Healthcare Security Administration held a press conference to discuss the optimization of the national drug procurement policy, announcing the selection of 55 drug varieties for the 11th batch of national procurement [4][21]. 3. Industry Perspective - The 11th batch of national procurement will implement a "low-price declaration" system, requiring the lowest-priced selected enterprises to justify their pricing, ensuring it does not fall below cost [5][22]. - The procurement will continue to exclude new drugs and focus on ensuring quality, with enhanced scrutiny on low-priced selected drugs [5][22]. - The overall procurement policy is expected to gradually improve, balancing price reductions with the need to ensure enterprise profits and public healthcare needs [5][22]. - The report expresses optimism about innovative drugs, overseas expansion, and sectors benefiting from procurement reforms, particularly in insulin and orthopedic segments [5][23].

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints - The report analyzes the secondary - market performance of A - shares, overseas major broad - based indices, gold indices, and Nanhua Commodity Index from July 14 to July 18, 2025. It also examines the performance, fund flow, trading volume, margin trading, and new issuance of ETFs during the same period [1][2] 3. Summary by Directory 3.1 Secondary Market Overview - In the sample period, the GEM Index, Hang Seng Index, and CSI 2000 ranked high in weekly returns, at 3.17%, 2.84%, and 1.74% respectively. The PE valuation quantile of CSI 500 was the highest at 100.00%, while that of the Nikkei 225 was the lowest at 64.08% [9] - Among Shenwan primary industries, Communication, Medicine and Biology, and Automobile ranked high in returns, at 7.56%, 4.00%, and 3.28% respectively. Media, Real Estate, and Utilities ranked low, at - 2.24%, - 2.17%, and - 1.37% respectively. The industries with the highest valuation quantiles were Medicine and Biology, National Defense and Military Industry, and Steel, all at 100.00%. The industries with lower valuation quantiles were Agriculture, Forestry, Animal Husbandry and Fishery, Non - Banking Finance, and Household Appliances, at 15.70%, 34.71%, and 38.43% respectively [13] 3.2 ETF Product Overview 3.2.1 ETF Market Performance - QDII ETFs had the best average performance with a weighted average return of 3.52%, while Money Market ETFs had the worst with 0.01% [18] - ETFs related to Hong Kong stocks and ChiNext Innovation 50 performed well, with weighted average returns of 5.01% and 4.47% respectively. ETFs related to Japanese stocks and MSCI China A - share concept performed poorly, with - 0.02% and 1.02% respectively [18] - Among industry - sector ETFs, Biomedical ETFs had the best performance with a weighted average return of 4.94%, while Financial Real Estate ETFs had the worst at - 0.86% [21] - Among theme - based ETFs, Innovative Drug and Artificial Intelligence ETFs performed well, with weighted average returns of 9.98% and 6.51% respectively. Non - Banking and Bank ETFs ranked low, at - 0.80% and - 0.76% respectively [21] 3.2.2 ETF Fund Inflow and Outflow - From the perspective of different categories of ETFs, Industry - Theme ETFs had the largest net inflow of 17.28 billion yuan, while Broad - Based ETFs had the smallest at - 29.709 billion yuan [25] - From the perspective of ETF - tracking indices and their constituent stocks' listing boards, Hong Kong Stock ETFs had the largest net inflow of 10.064 billion yuan, while CSI 300 ETFs had the smallest at - 8.841 billion yuan [25] - From the industry - sector perspective, Financial Real Estate sector ETFs had the largest net inflow of 9.919 billion yuan, while Biomedical sector ETFs had the smallest at - 2.607 billion yuan [26] - From the theme perspective, Non - Banking and Chip Semiconductor ETFs had the largest net inflows of 8.229 billion and 4.319 billion yuan respectively. Artificial Intelligence and Innovative Drug ETFs had the smallest at - 3.102 billion and - 0.797 billion yuan respectively [26] 3.2.3 ETF Trading Volume - From the perspective of different categories of ETFs, QDII ETFs had the largest increase in the average daily trading volume change rate at 18.95%, while Commodity ETFs had the largest decrease at - 21.54% [31] - From the perspective of ETF - tracking indices and their constituent stocks' listing boards, ChiNext Innovation 50 ETFs had the largest increase in the average daily trading volume change rate at 26.92%, while CSI 300 had the largest decrease at - 18.76% [34] - From the industry - sector perspective, the Technology sector had the largest increase in the average daily trading volume change rate at 17.38%, while the Financial Real Estate sector had the largest decrease at - 10.68% [35] - From the theme perspective, Non - Banking and Innovative Drug ETFs had the largest average daily trading volumes in the past 5 days, at 18.604 billion and 9.440 billion yuan respectively. Artificial Intelligence and Robot ETFs had the largest increases in the average daily trading volume change rate, at 41.53% and 34.15% respectively. Non - Banking and Low - Carbon Environmental Protection ETFs had the largest decreases at - 11.87% and - 7.82% respectively [39] 3.2.4 ETF Margin Trading - In the sample period, the net margin purchase of all equity ETFs was - 927 million yuan, and the net short - selling was - 207 million yuan. Bosera Science and Technology Innovation Board Artificial Intelligence ETF had the largest net margin purchase, and Fullgoal CSI A500 ETF had the largest net short - selling [43] 3.2.5 ETF New Issuance and Listing - In the sample period, 10 funds were established and 12 funds were listed [45]

新华财经上海7月21日电近期，韩国证券存托结算院（KSD）发布的最新数据显示，截至7月15日，韩国 投资者2025年年内对中国内地及香港股市的累计交易额超54亿美元，中国市场成为其第二大海外投资目 的地，仅次于美国市场。 数据显示，相较于偏好核心资产的欧美机构资金，韩国投资者紧跟市场热点，对港股热情高涨。截至7 月15日，韩国股民最为青睐小米集团，今年以来累计净买入金额约为1.7亿美元；比亚迪和宁德时代也 受到韩国股民青睐，分别吸引9310万美元和6089万美元的资金流入。泡泡玛特和老铺黄金等新消费概念 也获得追捧元。A股市场中，华夏中证机器人ETF成为韩国投资者配置中国机器人产业的重要通道。 韩国投资者短线大举扫货中国资产，是全球资本配置转变的一个缩影。随着中国经济基本面韧性凸显， 科技企业在人工智能等领域取得一系列重大突破，多家外资机构用"真金白银"加码中国市场。 此外，随着政策持续发力，"反内卷"风潮席卷各行各业，朱良认为，此次涉及的领域不仅包括钢铁、水 泥等传统产业，还涉及民企占比较高的光伏、新能源汽车、锂电池等新兴产业。 2025年初以来，得益于DeepSeek、新消费和创新药等新叙事的不断涌现，港 ...

Quantitative Models and Construction Methods 1. Model Name: "攻守兼备红利50组合" (Balanced Dividend 50 Portfolio) - **Model Construction Idea**: This model adopts an active quantitative strategy with a "top-down" stock selection logic. It aims to identify high-potential stocks within dividend-related themes by leveraging a refined factor library and aligning with industry and thematic insights[14][15] - **Model Construction Process**: 1. The model focuses on dividend-related stocks, emphasizing a balance between "stability" and "growth" factors[15] 2. It selects stocks from a universe of high-dividend companies, incorporating both fundamental and thematic factors to refine the portfolio[14][15] 3. The portfolio is actively managed and periodically rebalanced to maintain alignment with the strategy's objectives[15] - **Model Evaluation**: The model demonstrates a strong ability to generate excess returns over the benchmark, showcasing its robustness in balancing defensive and growth-oriented attributes[22] 2. Model Name: "央国企高分红30组合" (Central SOE High Dividend 30 Portfolio) - **Model Construction Idea**: This model targets high-dividend stocks within central state-owned enterprises (SOEs), emphasizing stability and defensive characteristics[15] - **Model Construction Process**: 1. The portfolio is constructed by selecting 30 high-dividend stocks from central SOEs[15] 2. It prioritizes companies with consistent dividend payouts and strong financial health[15] 3. The portfolio is actively managed to ensure alignment with its defensive strategy[15] - **Model Evaluation**: The model is effective in capturing stable returns, making it suitable for risk-averse investors seeking consistent income[22] 3. Model Name: "电子均衡配置增强组合" (Electronics Balanced Allocation Enhanced Portfolio) - **Model Construction Idea**: This model aims to achieve balanced exposure within the electronics sector, focusing on diversification and stability[15] - **Model Construction Process**: 1. The portfolio selects stocks across various sub-sectors within the electronics industry[15] 2. It employs a balanced allocation strategy to mitigate concentration risks[15] 3. The portfolio is periodically rebalanced to maintain its diversified structure[15] - **Model Evaluation**: The model has demonstrated positive excess returns over the electronics sector index, indicating its effectiveness in achieving balanced growth[32] 4. Model Name: "电子板块优选增强组合" (Electronics Sector Preferred Enhanced Portfolio) - **Model Construction Idea**: This model focuses on identifying leading companies within mature sub-sectors of the electronics industry, emphasizing growth potential[15] - **Model Construction Process**: 1. The portfolio targets mature sub-sector leaders with strong fundamentals and growth prospects[15] 2. It employs a factor-based approach to refine stock selection within the electronics sector[15] 3. The portfolio is actively managed to capitalize on emerging opportunities within the sector[15] - **Model Evaluation**: The model has achieved significant excess returns over the electronics sector index, highlighting its ability to capture growth opportunities[32] --- Model Backtesting Results 1. "攻守兼备红利50组合" - Excess return over the CSI Dividend Total Return Index: 4.76% (YTD 2025)[22] - Weekly excess return: 0.85%[22] 2. "央国企高分红30组合" - Weekly excess return over the CSI Dividend Total Return Index: 0.11%[22] 3. "电子均衡配置增强组合" - Excess return over the electronics sector index (YTD 2025): 2.40%[32] 4. "电子板块优选增强组合" - Excess return over the electronics sector index (YTD 2025): 5.83%[32]

Core Viewpoint - The overall economic fundamentals are improving, supported by dual policy efforts, positive external environment, and internal demand recovery, which is driving profit recovery [3]. Group 1: Market Performance - As of the latest trading session, the Shanghai Composite Index rose by 0.44% to 3549.89 points, the Shenzhen Component Index increased by 0.29% to 10945.76 points, and the ChiNext Index gained 0.12% to 2279.83 points [1]. - The market saw a surge in over 3500 stocks, with sectors like hydropower, cement, engineering machinery, rare earths, and building materials leading the gains, while the financial sector experienced a collective pullback [1]. Group 2: Investment Strategy - Investment focus should shift towards structural performance, with an emphasis on sectors benefiting from policies and strong earnings, as the financial market is not yet over [3]. - High certainty in earnings is expected to drive strong performance in certain sectors, with a continued focus on trend certainty in the market [3]. - The second half of the year is anticipated to be a busy period for technology releases in the domestic tech industry, alongside increasing certainty in sectors like biomedicine, aerospace, rare metals, and capacity optimization [3]. - Suggested themes for investment include AI applications, self-controllable technologies, innovative pharmaceuticals, and capacity resolution [3].