Core Insights - The Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index has shown a slight increase of 0.29% as of August 27, 2025, with notable stock performances from companies like Ailis and Maiwei Biotech [1] Group 1: Market Performance - The Sci-Tech Innovation Board Biopharmaceutical Index has seen significant stock movements, with Ailis reaching a daily limit increase of 20%, and Maiwei Biotech rising by 9.74% [1] - The market for the Jia Shi Sci-Tech Medicine ETF is active, with a turnover rate of 14.76% and a transaction volume of 45.3 million yuan [3] - Over the past week, the Jia Shi Sci-Tech Medicine ETF has averaged daily transactions of 70.77 million yuan, ranking first among comparable funds [3] Group 2: Fund Performance - The Jia Shi Sci-Tech Medicine ETF has reached a new high in scale at 304 million yuan, leading among comparable funds [3] - The fund's shares have also hit a one-month high of 248 million shares, again ranking first among its peers [3] - The ETF has experienced continuous net inflows over the past eight days, with a peak single-day net inflow of 15.48 million yuan, totaling 51.99 million yuan [3] - The net value of the Jia Shi Sci-Tech Medicine ETF has increased by 67.71% over the past year, with a maximum monthly return of 23.29% since its inception [3] Group 3: Industry Developments - Heng Rui Medicine has announced three business development collaborations with multinational pharmaceutical companies, with upfront payments totaling approximately 720 million USD and potential total transaction amounts exceeding 13.7 billion USD [4] - China National Pharmaceutical has indicated a significant external licensing deal involving potential products, enhancing its international research capabilities [4] - The biopharmaceutical industry is currently experiencing strong performance, with a focus on innovative drugs, medical devices benefiting from policy changes, and companies exceeding mid-year performance expectations [4] Group 4: Key Stocks - The top ten weighted stocks in the Sci-Tech Innovation Board Biopharmaceutical Index account for 49.14% of the index, with companies like United Imaging Healthcare and BeiGene among the leaders [5][7] - Notable stock performances include United Imaging Healthcare at 2.01% and Ailis at a significant 20% increase [7]

Investment Rating - The report maintains an "Outperform" rating for the industry [7]. Core Insights - The long-term care insurance (LTCI) is expected to generate a trillion-level demand for nursing services, emphasizing the importance of innovative medical devices [2][4]. - The report highlights a significant increase in the number of disabled individuals in China, projected to reach 62 million by 2050, leading to a related care demand of approximately 1.7 trillion yuan [4][16]. - The LTCI system is in an accelerated establishment phase, with the government increasingly focusing on its implementation since 2021 [4][18]. Summary by Sections Long-term Care Insurance - The LTCI is anticipated to become a core payment mechanism for nursing services, with a projected care demand of 1.7 trillion yuan by 2050 due to the rising number of disabled individuals [4][16]. - The number of individuals covered by LTCI has grown from 108 million in 2020 to 183 million in 2023, with a significant increase in both income and expenditure of the LTCI fund [27][28]. - The report outlines various methods to estimate the potential income scale of LTCI, suggesting it could reach between 1,773 billion and 20,130 billion yuan based on different assumptions [41][46]. Market Review and Trends - The report notes a 4.2% decline in the CITIC Pharmaceutical Index for the week of June 16-20, 2025, underperforming the CSI 300 Index by 3.8 percentage points [3][49]. - The report identifies key stocks that performed well during the week, including Anglikang (+21.2%) and Yuekang Pharmaceutical (+19.3%) [3][64]. - The overall market sentiment in the pharmaceutical sector is currently weak, with a 25.6% decrease in trading volume compared to the previous week [5][63]. Investment Recommendations - The report suggests focusing on innovative medical devices and pharmaceuticals as key investment themes, particularly those with strong performance trends and potential for growth [5][6]. - Specific companies to watch include Huada Zhizao, Huitai Medical, and Xinda Biopharma, among others [6][12].