Core Viewpoint - The announcement of a new executive order by Trump to reduce prescription drug prices in the U.S. has led to a significant decline in the innovation drug sector in Hong Kong and A-shares, with ETFs dropping over 4% [1][2] Group 1: Market Reaction - The Hang Seng Innovation Drug ETF, Hong Kong Stock Connect Innovation Drug ETF, and other related ETFs experienced declines exceeding 4% following the news [1] - The executive order is expected to lower drug prices by 30% to 80%, which may lead to a global price increase to maintain balance [2] Group 2: Industry Analysis - The pharmaceutical sector's attention has increased, with A-share pharmaceutical fund holdings at 8.53% in Q1 2025, remaining stable, while non-pharmaceutical fund holdings decreased slightly [3] - The top three segments in pharmaceutical stock holdings are chemical preparations (41.81%), medical research outsourcing (17.02%), and medical devices (11.95%) [3] Group 3: Future Outlook - The focus on innovation and self-sufficiency is emphasized, with a recommendation to pay attention to innovative drugs and improving fundamentals in the drug supply chain [4] - The pharmaceutical sector is expected to stabilize and grow, driven by innovation and increasing clinical demand due to aging populations [4]