Core Viewpoint - The Chinese pharmaceutical sector is experiencing positive momentum due to supportive government policies aimed at fostering the development of innovative drugs, which is expected to enhance the industry's growth and investment opportunities [3]. Policy Support - The National Healthcare Security Administration and the National Health Commission have issued measures to support the high-quality development of innovative drugs, including increased R&D support, inclusion in basic medical insurance, and improved clinical application [3]. - The introduction of the 2025 basic medical insurance directory and commercial health insurance innovative drug directory aims to enhance the multi-tiered medical security system, addressing payment challenges for high-value innovative drugs [3]. Market Outlook - The year 2025 is anticipated to be significant for domestic innovative drugs entering international markets, following a seven-year transition from generic to innovative drugs since the "4+7" procurement policy was implemented in 2018 [3]. - The pharmaceutical sector is expected to see a rise in sentiment and valuation due to ongoing policy support, improved payment mechanisms, enhanced R&D capabilities, and the integration of AI technologies [4]. AI Integration - AI is projected to comprehensively empower the pharmaceutical industry, improving efficiency in drug development, production, and medical services [4]. - The implementation plan for the digital transformation of the pharmaceutical industry aims for comprehensive coverage of intelligent transformation by 2030 [4]. Investment Opportunities - The innovative drug ETFs, such as Guotai (517110), are highlighted as worthy of continued attention, alongside other ETFs focused on the entrepreneurial and biopharmaceutical sectors [4].

Group 1: Hong Kong Stock Market Performance - The Hang Seng Index rose by 1.36%, gaining 297 points to close at 22,206 points, while the Hang Seng Tech Index increased by 1.87% [1] - The early trading volume in the Hong Kong stock market reached HKD 116.4 billion [1] Group 2: Real Estate Sector - Foreign institutions are optimistic about the recovery of the Chinese real estate sector, with Citigroup strategists urging investors to increase their holdings in Chinese real estate stocks due to expected improvements in profitability from policy support and better management practices [1] - Kwan Hung Holdings surged over 43%, while other notable gains included Rongxin China up 17%, Greentown China up 5%, CIFI Holdings up 7.88%, Sunac China up 4.22%, and Longfor Group up 6.74% [1] Group 3: AI Medical Sector - AI medical concept stocks saw an uptick as seven departments jointly promoted AI empowerment across the pharmaceutical industry, with institutions optimistic about the accelerated trend in the AI medical industry [1] - Notable stock performances included iFlytek Medical Technology up 7.2%, Yidu Tech up 5.35%, Crystal Tech Holdings up 4.69%, and MicroPort Scientific up 4.07% [1] Group 4: Other Notable Stocks - Horizon Robotics rose over 7% following a strategic partnership with Bosch to develop an upgraded version of Bosch's advanced driver assistance system [2] - KPB Medical surged over 14%, with a cumulative increase of over 95% this week after its core product was approved for sale in China [3] - Xintai Medical increased by 3.88%, although the company indicated uncertainty regarding its sales growth targets [4] - Minmetals Resources rose over 5%, reporting a 76% year-on-year increase in copper production for the first quarter, with potential adjustments to production guidance [5] - Beike-W increased by 4.88%, as the real estate fundamentals became clearer, with institutions suggesting its stock price is entering a value range [6] - Global New Materials International saw a sharp rise of over 20% before settling at a 4% increase after acquiring Merck's global performance solutions business [7]