Core Viewpoint - The stock of Yaojie Ankang (2617.HK) experienced extreme volatility, soaring by 557.69% in just six trading days, followed by a dramatic drop of 53.73% in a single day, raising questions about the reasons behind such fluctuations and the implications for the index inclusion process [2][3][19] Company Overview - Yaojie Ankang, established in April 2014, is a clinical-stage biopharmaceutical company that went public on June 23, 2025, with an initial share price of 13.15 HKD and a market capitalization of approximately 5.2 billion HKD [3][5] - The company has reported losses of 343 million HKD in 2023 and 275 million HKD in 2024, with zero revenue and a loss of 123 million HKD in the first half of 2025 [3][5] Stock Performance - The stock price surged over 50 times from September 8 to September 15, 2023, following its inclusion in multiple indices, including the Hong Kong Stock Connect and the Hang Seng Innovation Drug Index [5][16] - On September 15, the stock closed at 415 HKD, marking a single-day increase of 115.58% [12] Market Reactions - The sudden price drop on September 16, where the stock fell to 192 HKD, led to an urgent announcement from Yaojie Ankang stating that it was unaware of the reasons for the price fluctuations and that there were no significant changes in its business operations or financial status [2][19] - The volatility has raised concerns about the inclusion of unprofitable companies in indices, as Yaojie Ankang was only three months post-IPO at the time of its index inclusion [9][18] Index Inclusion Controversy - The inclusion of Yaojie Ankang in the National Index for Hong Kong Stock Connect Innovation Drugs has sparked debate regarding the criteria for index membership, particularly for companies that are unprofitable and newly listed [9][11][18] - The index's criteria typically require companies to have a minimum trading history and financial stability, which Yaojie Ankang does not meet [18] ETF Impact - Several ETFs tracking the National Index were affected by Yaojie Ankang's stock performance, leading to significant passive buying pressure due to the index's adjustments [16][17] - The total assets under management for the ETFs linked to the index amount to approximately 37.12 billion HKD, indicating substantial market influence [16]

Core Viewpoint - The A-share market showed resilience in Q2, with nearly half of individual investors reporting profits, leading to increased optimism for Q3 [4][24]. Investor Performance - 48% of investors reported profits in Q2, an increase of 6 percentage points from the previous quarter [5]. - The majority of profitable investors had gains of 10% or less, accounting for 34% of respondents [5]. - The percentage of investors reporting losses decreased significantly to 20%, down 11 percentage points from the previous quarter [5]. Market Trends - A-share indices experienced a "V" shaped recovery after a significant drop in early April, with the Shanghai Composite Index recovering to above 3400 points by the end of Q2 [4][24]. - Investor sentiment shifted from cautious to optimistic, with 70% expecting the A-share market to rise in Q3, a 12 percentage point increase from the previous quarter [17][24]. Asset Allocation - There was a notable increase in the proportion of individual investors' securities account assets relative to their total financial assets, with 27% reporting an increase [8]. - 36% of investors plan to increase their allocation to equity assets, reflecting a growing confidence in the market [8]. Sector Preferences - Investors maintained a strong interest in technology growth stocks, with an average holding of 23.94%, significantly higher than other sectors [12]. - The cyclical sector saw increased attention, with a rise in average holdings to 20.21% in Q2 [12]. - New consumption concepts gained traction, with 55% of investors participating in the Hong Kong new consumption sector [15]. Future Outlook - 70% of investors believe the Shanghai Composite Index will close positively in Q3, with expectations for a trading range between 3400 and 3500 points [18][19]. - The liquidity outlook is improving, with 44% of investors expecting current liquidity levels to be maintained [20][21]. - 57% of investors anticipate continued growth in the Hong Kong market, with a significant portion willing to increase their investments [23].

Market Performance - The three major A-share indices collectively rose today, with the Shanghai Composite Index up by 0.82%, the Shenzhen Component Index up by 1.72%, the ChiNext Index up by 2.63%, and the North Star 50 Index up by 2.89% [1] - The total market turnover reached 1.34 trillion yuan, an increase of 118.5 billion yuan compared to the previous day [1] - Over 4,100 stocks in the market experienced gains [1] Sector Performance - The military industry, robotics, Apple supply chain, rail transit equipment, photovoltaic equipment, and solid-state battery sectors saw the largest gains [1] - Conversely, the precious metals, agriculture, innovative pharmaceuticals, electricity, and beverage manufacturing sectors experienced declines [1] Notable Stocks - Military stocks surged again, with over 20 stocks hitting the daily limit, including Qifeng Precision, Kunshan Intelligent, AVIC Chengfei, Morningstar Aviation, and Aerospace Nanhu [1] - Stocks in the Apple supply chain rebounded collectively due to favorable news from US-China negotiations, with Blue Technology, Luxshare Precision, and GoerTek leading the gains [1] - The robotics sector was also active, with TOSYDA hitting the daily limit, and Efort rising over 10%, along with Sanfeng Intelligent, Yijiahe, and Estun following suit [1] - Innovative pharmaceutical stocks weakened, with Maiwei Biotech down over 10%, BeiGene down over 9%, and other companies like Shutai Pharmaceutical, Xinlitai, and Hengrui Medicine also declining [1] - Gold stocks underperformed, with Western Gold, Sichuan Gold, and Xiaocheng Technology among those with the largest declines [1]