Investment Rating - The report maintains a "Buy" rating for multiple companies in the pharmaceutical sector, including Junshi Biosciences, Hualan Biological Engineering, and others [4]. Core Viewpoints - The report highlights the investment opportunities in innovative drugs against the backdrop of global asset rebalancing, particularly focusing on KRAS G12C mutation in non-small cell lung cancer (NSCLC) [2][8]. - It emphasizes the potential for KRAS G12C inhibitors to advance to first-line treatment for NSCLC, with an estimated 30% of KRAS mutations in NSCLC being of the G12C subtype, leading to approximately 30,000 new cases annually in China [5][17]. Summary by Sections 1. Industry Viewpoints and Investment Recommendations - KRAS G12C inhibitors are progressing towards first-line treatment for NSCLC, with current standard therapies being PD1 ± chemotherapy [18]. - The report suggests focusing on innovative drugs, particularly in the context of increased liquidity and risk appetite in the market, with significant data releases expected from major conferences [6][32]. 2. Pharmaceutical Industry Market Performance - The pharmaceutical sector saw a 1.01% increase, slightly underperforming the CSI 300 index by 1.00 percentage points [39]. - Sub-sectors such as drug packaging and medical devices performed well, while innovative drugs lagged behind [39]. 3. Company Dynamics - Notable company activities include the approval of new drugs and clinical trial advancements, such as the successful Phase III trials for AstraZeneca's Breztri and Genmab's Epcoritamab [46]. - Companies like Junshi Biosciences and Innovent Biologics are highlighted for their leading positions in the KRAS G12C inhibitor market [22][23]. 4. Industry Dynamics - The report discusses the impact of patent expirations on raw material demand, projecting a significant increase in sales due to the expiration of patents for top-selling small molecule drugs [35]. - It also notes the improvement in demand for raw materials and the end of inventory destocking phases, suggesting a positive outlook for the raw material sector [35].

Core Viewpoint - The recent trade tensions between China and India, marked by India's imposition of tariffs on steel imports and China's anti-dumping investigation into medical equipment components, reflect deeper strategic rivalries rather than isolated economic disputes [1][3][10]. Trade Policies - India has imposed a 12% temporary tariff on imported steel products to protect its domestic industry from what it perceives as cheap Chinese imports, claiming it aims to curb the impact on local manufacturers [3][5]. - The Indian government has previously enacted selective bans on Chinese products, such as drone components and apps, while allowing American companies to operate freely, indicating a strategic alignment with U.S. interests [3][5]. Strategic Implications - The timing of India's tariff announcement coincided with the U.S. extending tariffs on Chinese goods, suggesting a coordinated effort to counter China [3][10]. - India's approach to balancing relations with major powers, including the U.S. and Russia, while simultaneously engaging in confrontational policies towards China, highlights its complex geopolitical strategy [5][10]. Economic Impact - China's response to India's tariffs includes a swift anti-dumping investigation into critical components for medical imaging equipment, which could significantly impact India's healthcare sector, as 65% of its high-end medical imaging devices are imported, with 40% from China [7][11]. - The potential expansion of China's countermeasures to include India's pharmaceutical and IT sectors, where India exports over $3 billion in drug raw materials to China, could lead to severe economic repercussions for India [7][11]. Trade Relations - In 2024, the trade volume between China and India exceeded $130 billion, with China remaining India's largest trading partner for the 15th consecutive year, surpassing India's trade with the U.S., Russia, and Japan combined [11][16]. - Despite political rhetoric advocating for reduced dependence on China, Indian imports from China increased by 7.3% in the first quarter of 2025, indicating a reliance on Chinese goods [11][16].