Group 1 - Jianxin Fund plans to invest at least 180 million yuan in its equity public products, having already invested 173 million yuan from Q4 2024 to Q1 2025 [1] - Jianxin Fund anticipates that external pressures will enhance the domestic policy logic of "taking the initiative," with expectations for a release of counter-cyclical policies to mitigate the impact of US tariffs [1] Group 2 - Multiple Hong Kong Stock Connect ETFs experienced significant trading activity during the market closure, with some ETFs seeing turnover rates exceeding 900% [2] - The Hang Seng Stock Connect ETF recorded a trading volume of 374 million yuan on April 18, a 76-fold increase from the previous trading day [2] - Due to the surge in ETF prices, premium rates have also increased, prompting several fund companies to issue risk warning announcements [2] Group 3 - Several QDII funds have significantly reduced their holdings in US stocks while increasing their positions in A-shares and Hong Kong stocks, with one fund's US stock allocation dropping from 52.38% to 24.22% [3] - The same fund increased its Hong Kong stock allocation from 20.48% to 54.94% [3] Group 4 - The offline subscription for Huatai Suzhou Hengtai Rental Housing REIT reached a record high, with a total subscription amount 222.64 times the initial offering [4] - The previous record was held by the Hui Tian Fu Shanghai Real Estate Rental Housing REIT, which had a subscription rate of 180.74 times [4] Group 5 - E Fund's consumer sector fund increased its allocation to liquor stocks, viewing it as a high-yield bond with domestic demand upside [5] - The fund's top ten holdings include Kweichow Moutai, Shanxi Fenjiu, and Wuliangye, with adjustments made in the automotive sector [5][6] Group 6 - Fund manager Guo Lan reduced holdings in Xinlitai, with the number of shares held decreasing from 16.23 million to 14.07 million [7] - Xinlitai is an innovative pharmaceutical company listed on the Shenzhen Stock Exchange [7] Group 7 - Fund manager Fu Pengbo slightly increased holdings in Furuisi, with shares rising from 672.96 million to 684.96 million [8] - Furuisi focuses on liver disease treatment and is listed on the Shenzhen Stock Exchange [8] Group 8 - On April 22, the market showed mixed results, with the Shanghai Composite Index rising by 0.25% while the Shenzhen Component Index and ChiNext Index fell by 0.36% and 0.82%, respectively [9] - The total trading volume in the Shanghai and Shenzhen markets reached 1.09 trillion yuan, an increase of 48.6 billion yuan from the previous trading day [9] Group 9 - Hong Kong innovative drug-related ETFs saw strong performance, with some rising by as much as 5.77% [10] - Analysts suggest that the pharmaceutical sector may attract market funds due to previous declines and cheap valuations, with significant investment opportunities expected in innovative and generic drugs [10]

Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical and biotechnology sector, highlighting significant undervaluation in H-shares of innovative and generic drugs [1]. Core Insights - The current market conditions in Hong Kong provide a favorable entry point for investors, with a focus on undervalued stocks in the innovative and generic drug sector, particularly companies like 3SBio, Kangzhe Pharmaceutical, and Yuan Da Pharmaceutical [4][16]. - The report emphasizes the strong performance of small-cap stocks and the adjustments in innovative drugs, indicating a shift in market dynamics [7]. Summary by Sections Industry Performance - The A-share pharmaceutical index has increased by 1.77% this week and 3.99% year-to-date, outperforming the CSI 300 by 0.18% and 2.17% respectively. The H-share biotechnology index has seen a rise of 2.04% this week and 23.06% year-to-date, outperforming the Hang Seng Technology Index by 5.14% [4][7]. - Notable stock performances include Jin Cheng Pharmaceutical (+42.43%), Zhongke Meiling (+39.09%), and Saily Medical (+34.47%) in A-shares, while in H-shares, Jin Xin Reproductive (+41.67%) and Weiya Biological (+18.88%) led the gains [7]. Investment Opportunities - The report identifies three key companies in the H-share market: 1. **3SBio**: Strong existing business with positive data from SSGJ707 Phase II trials, expected to contribute significantly to market value [18]. 2. **Kangzhe Pharmaceutical**: Three innovative products are anticipated to see rapid market uptake [4][8]. 3. **Yuan Da Pharmaceutical**: The first nuclear medicine product for liver cancer treatment is entering a rapid growth phase [4][8]. Sector Insights - The report ranks preferred sub-sectors as follows: Innovative drugs > CXO > Traditional Chinese medicine > Medical devices > Pharmacies > Pharmaceutical commerce [8]. - It suggests stock selection strategies based on valuation, growth potential, and dividend yield, with specific recommendations for various categories of companies [8]. Regulatory Developments - The report notes significant regulatory advancements, including the approval of the first IGF-1R monoclonal antibody for thyroid eye disease in China, marking a milestone in the treatment landscape [4][8]. Market Trends - The report highlights the growing market for nicotine pouches, with global sales expected to reach 83.417 billion pouches by 2028, corresponding to a market size of $46.713 billion [4][8]. Valuation Metrics - The report indicates that the pharmaceutical index's price-to-earnings ratio is currently at 31.76, which is 7.34 lower than the historical average, suggesting potential for upward adjustment [4][7]. Company-Specific Developments - **3SBio**: The company is advancing multiple Phase II clinical trials for SSGJ-707, showing promising anti-tumor activity and safety, with potential peak sales in China estimated at 6 billion RMB and 4.5 billion USD in overseas markets [19][18]. This structured summary encapsulates the key insights and recommendations from the report, providing a comprehensive overview of the current state and future outlook of the pharmaceutical and biotechnology industry.