Core Viewpoint - The innovative drug ETF Tianhong (517380) has experienced a decline of 2.56% as of June 26, with a current scale exceeding 5 billion yuan, making it the largest innovative drug ETF across the Shanghai, Shenzhen, and Hong Kong markets [1][2]. Fund Performance - The ETF has seen net inflows for 3 out of the last 5 days, indicating continued investor interest despite recent market fluctuations [2]. - The innovative drug sector in both Hong Kong and A-shares experienced a brief correction in mid-June after a period of significant gains [2]. Market Analysis - Analysts suggest that the development and commercialization of innovative drugs is a long-term process, and as research capabilities gain recognition, the sector may experience substantial growth [2]. - Recent reports indicate that the innovative drug sector underwent a phase of correction due to geopolitical tensions and prior market sentiment-driven rapid increases [2]. Future Outlook - According to Xiangcai Securities, the domestic innovative drug industry is expected to reach a turning point by 2025, shifting from capital-driven growth to profit-driven growth, presenting opportunities for both performance and valuation recovery [3]. - The supply-demand dynamics in the innovative drug sector are improving, with innovation becoming the core driving force, suggesting a favorable investment environment [3]. - As of June 25, the top ten constituents of the Hang Seng Shanghai-Shenzhen-Hong Kong Innovative Drug 50 Index account for 60.17% of the index, including high-quality A-share companies like Innovent Biologics and BeiGene [3].