Core Viewpoint - The article highlights the potential tightening of restrictions by the Trump administration on the introduction of Chinese pharmaceuticals, which has garnered significant market attention. However, the overall impact is expected to be minimal due to existing regulatory trends and the resilience of Chinese innovative drug assets in the global market [1][2]. Group 1: Regulatory Environment - The U.S. government is expected to impose stricter scrutiny on the introduction of overseas products (BD) and raise requirements for clinical trial data, reflecting a continuation of the FDA's ongoing regulatory tightening [1]. - The trend of BD collaboration is a norm for multinational corporations (MNCs), and Chinese innovative drug assets remain highly competitive globally, making it unlikely for political noise to reverse the long-term trend of BD authorization and collaborative development [1][2]. Group 2: Market Dynamics - MNCs, as the primary beneficiaries of BD collaborations, possess greater industry and policy influence in the U.S. compared to Biotech firms. Despite potential pressure on U.S. Biotech expectations due to the introduction and acquisition of Chinese innovative drugs, MNCs will continue to actively promote international cooperation based on their strategic and commercial interests [2]. - Chinese innovative pharmaceutical companies are characterized by high efficiency and low cost advantages, attracting global buyers even if U.S. MNCs slow down their introductions due to policy restrictions. This could potentially weaken the U.S.'s leading position in the global pharmaceutical industry in the long run [2]. Group 3: Impact on Innovative Drug Sector - Short-term emotional disturbances are expected but will not alter the long-term industrial logic. The core driver of the recent rise in the innovative drug sector is the industry's entry into a prolonged prosperity cycle, with Chinese innovative drug companies achieving domestic insurance volume and crossing profitability inflection points [2][3]. - The market may shift towards more certain targets as awareness of the innovative drug industry deepens, leading to a potential decline in the previous blind pursuit of small-cap companies while favoring mid-to-large innovative drug firms with established products and high BD certainty [3]. - Short-term adjustments may present good opportunities for positioning, as historical experience shows that emotional pullbacks triggered by sudden events or policy noise often provide favorable accumulation chances [3].

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index decreased by 0.91% as of August 20, 2025, with mixed performance among constituent stocks [1] - Heartbeat Medical led the gains with an increase of 3.13%, while Yuandong Biological experienced the largest decline [1] - The market for the Sci-Tech Medical ETF managed by Harvest saw a turnover rate of 24.05% and a transaction volume of 62.637 million yuan, indicating active trading [3] Group 2 - The latest scale of the Sci-Tech Medical ETF reached 263 million yuan, marking a one-month high and ranking first among comparable funds [3] - The ETF has seen continuous net inflows over the past three days, with a maximum single-day net inflow of 6.157 million yuan, totaling 15.2382 million yuan [3] - The net value of the ETF increased by 56.59% over the past year, with the highest monthly return since inception being 23.29% [3] Group 3 - The total amount of business cooperation for innovative drugs in China is projected to reach 51.9 billion USD in 2024, with a record 1.25 billion USD upfront payment transaction between 3SBio and Pfizer in 2025 [4] - The Chinese innovative drug sector has seen a 25.02% increase year-to-date, ranking fourth among 31 industries, with a current PE ratio of 31.31 times [4] - The National Healthcare Security Administration has introduced a temporary management method for disease-based payment, promoting payment reform in the healthcare sector [4] Group 4 - As of July 31, 2025, the top ten weighted stocks in the Sci-Tech Innovation Board Biopharmaceutical Index accounted for 49.14% of the index, with leading companies including United Imaging and BeiGene [4][6] - The performance of individual stocks varied, with United Imaging down by 0.26% and BeiGene up by 0.95% [6] - Investors without stock accounts can access the Sci-Tech Medical ETF through the Harvest Sci-Tech Medical ETF linked fund [6]