Group 1 - The core viewpoint of the news is the removal of CXO companies from the Hang Seng Hong Kong Innovation Drug Index to enhance the precision of public ETF tracking of innovative drug stocks, focusing solely on core innovative drug companies [1][2] - The adjustment is driven by the increasing divergence in performance between CXO companies and the innovative drug industry, with the five removed companies underperforming the overall index and collectively accounting for a 20% weight [1][2] - As of the end of Q2 2025, the allocation of public funds to the CXO sector has dropped to a historical low, while the innovative drug ETF has nearly doubled in returns this year, indicating strong market expectations for profitability in the innovative drug sector [1][2] Group 2 - CXO companies, previously a significant part of the innovative drug industry chain, are primarily service providers and do not hold core intellectual property or share in the commercialization success of new drugs, leading to a shift in investment focus [2] - The demand for more refined and personalized investment strategies in innovative drug theme funds and ETFs has increased, highlighting a growing disparity in attractiveness between the innovative drug sector and the CXO sector [2] - The removal of CXO companies from the index allows for a more accurate representation of the current trends in the innovative drug industry, as these companies do not contribute to fund managers' returns [2]

Core Viewpoint - The CXO sector in China is showing signs of recovery, with several companies, including WuXi AppTec, announcing a return to growth in their mid-term performance forecasts [1] Company Performance - WuXi AppTec has raised its full-year sales forecast, expecting a return to double-digit growth in revenue for its continuing operations by 2025, with the growth rate adjusted from 10%-15% to 13%-17% [1] - In the first half of the year, WuXi AppTec reported revenue of 20.799 billion yuan, a year-on-year increase of 20.64%, and a net profit attributable to shareholders of 8.561 billion yuan, up 101.92% [1] - In the second quarter, WuXi AppTec achieved a record revenue of 11.145 billion yuan and a net profit of 4.889 billion yuan [1] Industry Insights - According to CICC, the expected increase in business development funds and secondary market activity will boost domestic new drug research and development demand, as well as enhance the financing activity of primary innovative drug projects, benefiting domestic companies [1] - The cost and efficiency advantages of Chinese companies are attracting overseas clients, leading to a positive trend in external demand orders [1]