- The report does not contain any quantitative models or factors.

Market Performance - The market experienced a rebound on July 28, with the ChiNext Index leading the gains, closing up by 0.96% [1] - The Shanghai Composite Index rose by 0.12%, and the Shenzhen Component Index increased by 0.44% [1] Sector Performance - The computing hardware sector saw a significant surge, while innovative drug concept stocks maintained strong performance [1] - Active performance was noted in military and commercial aerospace concept stocks [1] - Conversely, cyclical stocks such as steel and coal experienced collective adjustments [1] ETF Performance - All ETFs that rose were related to innovative drugs, with the East Money Fund's Innovative Drug ETF (159622) leading the market with a 4.1% increase [3] - Other notable ETFs in the innovative drug sector also saw gains, with the Hong Kong Innovative Drug 50 ETF (513780) up by 4.04% and the Hong Kong Innovative Drug ETF (513120) up by 4.01% [3] Policy Updates - On July 24, the National Medical Insurance Administration announced the initiation of the 11th batch of centralized procurement, optimizing specific rules regarding the selection process [2] - The new rules will no longer simply use the lowest bid as a reference point, and companies with the lowest bids must publicly justify their pricing [2] Industry Insights - According to a report by Industrial Securities, the AACR and ASCO meetings this year showcased numerous domestic innovative drugs exceeding expectations, with anticipation for data releases from upcoming industry conferences [4] - There has been ongoing progress in foreign licensing transactions for innovative drugs, with expectations for more high-quality domestic products to explore international opportunities [4]

Market Overview - On July 28, 2025, A-shares saw collective gains across the three major indices, with the Shanghai Composite Index rising by 0.12%, the Shenzhen Component Index by 0.44%, and the ChiNext Index by 0.96%. The total trading volume in the Shanghai and Shenzhen markets exceeded 1.7 trillion yuan [1]. Innovation Drug Sector - Innovation drug-related ETFs led the market with significant gains, including the Innovation Drug ETF Hong Kong-Shenzhen (159622) rising by 4.10%, and the Hong Kong Innovation Drug 50 ETF (513780) increasing by 4.04% [1]. - A notable announcement from Heng Rui Medicine involved a potential license-out collaboration with GlaxoSmithKline (GSK) worth up to $12.5 billion, covering a clinical-stage respiratory innovation drug and up to 11 non-clinical candidates. This news led to a surge in Heng Rui's stock, reaching a four-year high in A-shares and over 16% increase in H-shares [2]. ETF Performance - The top-performing ETFs included several innovation drug-related funds, with multiple ETFs achieving gains above 3.70% [1]. - Conversely, the energy sector faced declines, with the top ETF, the Sci-Tech Comprehensive Aluminum ETF (589300), dropping by 14.01% [3]. Trading Activity - The trading volume for the Short-term Bond ETF (211360) was the highest at 33.9 billion yuan, followed by the Silver Hua Daily ETF (511880) at 21.0 billion yuan [4]. - The turnover rate for the Benchmark National Bond ETF (511100) was the highest at 552.67%, indicating strong trading activity in this segment [5][6].

Group 1 - The ETF market showed mixed performance, with the innovative drug ETFs leading gains, particularly the Shanghai-Hong Kong-Shenzhen innovative drug ETF (159622) which rose by 4.10% [1] - The Hong Kong innovative drug 50 ETF (513780) increased by 4.04%, while the Hong Kong innovative drug ETF (513120) saw a rise of 4.01% [1] - Conversely, the STAR Market comprehensive index ETF by Harvest (589300) experienced a significant decline of 14.01%, indicating a notable downturn in that sector [1] Group 2 - The energy and chemical ETF (159981) fell by 4.12%, and the coal ETF (515220) decreased by 2.87%, reflecting challenges in those industries [1] - There is a suggestion to utilize T+0 trading through ETFs to invest in Hong Kong innovative drug stocks, indicating a strategic approach to capitalize on the sector's performance [1]

Group 1 - The fund is named "Innovative Drug ETF Hong Kong-Shanghai-Shenzhen" and is managed by Tibet Dongcai Fund Management Co., Ltd. [2] - The fund aims to closely track the performance of the underlying index, minimizing tracking deviation and error [2][10]. - As of the end of the reporting period on June 30, 2025, the total fund shares amounted to 236,603,238 [2][14]. Group 2 - The fund's investment strategy primarily employs a full replication method, constructing the investment portfolio based on the composition and weight of the underlying index [2][10]. - The fund's performance benchmark is the China Securities Index for the innovative drug industry, which reflects the overall performance of listed companies in this sector [4][10]. - The fund's net asset value growth rate for the reporting period was 8.60%, outperforming the benchmark return of 7.86% [10]. Group 3 - The fund's asset allocation as of the reporting period includes 97.67% in stocks, with no holdings in bonds or asset-backed securities [11]. - The healthcare sector represents 41.91% of the fund's net asset value, indicating a significant focus on this industry [12][13]. - The fund's total subscription during the reporting period was 80,000,000 shares, while total redemptions were 76,000,000 shares [14].

ETF Industry News - The three major indices experienced fluctuations and declines, with the Shanghai Composite Index down by 0.22%, the Shenzhen Component Index down by 0.48%, and the ChiNext Index down by 0.66%. Several computer sector ETFs saw increases, including the Cloud 50 ETF (560660.SH) which rose by 1.64% and the Cloud Computing Hong Kong-Shenzhen ETF (517390.SH) which increased by 1.05%. Conversely, multiple pharmaceutical and biotechnology ETFs declined, with the Tianhong Innovative Drug ETF (517380.SH) down by 2.11% and the Hong Kong-Shenzhen Innovative Drug ETF (159622.SZ) down by 2.03% [1][2]. - The total scale of stock ETFs has returned to over 3 trillion yuan, with the number of stock ETFs reaching 975 and a total net asset value of approximately 3.05 trillion yuan, accounting for 70.76% of the entire ETF market [1][2]. Market Overview - On June 26, the three major indices collectively fell, with the Shanghai Composite Index closing at 3448.45 points, the Shenzhen Component Index at 10343.48 points, and the ChiNext Index at 2114.43 points. The highest intraday points were 3462.75, 10440.73, and 2142.21 respectively. The Nikkei 225, CSI 300, and CSI A500 ranked higher in performance, with daily changes of 1.65%, -0.35%, and -0.36% respectively [3]. Sector Performance - In the performance of various sectors, banking, telecommunications, and defense industries ranked higher with daily increases of 1.01%, 0.77%, and 0.55% respectively. In contrast, the automotive, non-bank financial, and pharmaceutical sectors lagged behind with declines of -1.37%, -1.2%, and -1.05% respectively. Over the past five trading days, non-bank financial, computer, and defense industries showed strong performance with increases of 7.69%, 6.15%, and 4.75% respectively [6]. ETF Market Performance - The overall performance of ETFs was analyzed based on their scale and daily changes. Commodity ETFs performed the best with an average increase of 0.11%, while cross-border ETFs had the worst performance with an average decrease of -0.72% [8]. - The top five performing ETFs today included the Communication Equipment ETF (159583.SZ), Cloud 50 ETF (560660.SH), and Gold Stock ETF (159322.SZ), with returns of 1.83%, 1.64%, and 1.44% respectively [10]. Trading Volume of Different ETF Categories - The trading volume of various ETF categories was reported, with the top three stock ETFs by trading volume being the CSI 300 ETF (510300.SH) at 3.746 billion yuan, A500 ETF (512050.SH) at 3.740 billion yuan, and A500 ETF by Harvest (159351.SZ) at 3.324 billion yuan [12].

Report Industry Investment Rating - Bullish on the four major stock indexes [2] Core View of the Report - The Sino-US economic and trade teams have reached a framework agreement, stabilizing the global economy. Global asset reallocation is beneficial to A-shares. The four major stock indexes are expected to rise, and the growth style is expected to lead the gains [2]. Summary by Relevant Catalogs Market Review - On Thursday, the market was waiting for the official release of the details of the Sino-US framework agreement. The main indexes of the two markets fluctuated narrowly. The trading volume of the two markets was 1.27 trillion yuan, with little change. The CSI 1000 Index closed at 6,192 points, up 5 points or 0.09%; the CSI 500 Index closed at 5,799 points, up 6 points or 0.12%; the Shanghai-Shenzhen 300 Index closed at 3,892 points, down 2 points or -0.06%; the Shanghai 50 Index closed at 2,691 points, down 1 point or -0.03% [1]. - Among industry and theme ETFs, the top gainers were the Innovative Drug ETF (Hong Kong, Shanghai and Shenzhen), Gold Stocks ETF, Science and Technology Innovation Pharmaceutical Index ETF, Innovative Drug ETF, etc. Among the sector indexes, the top gainers were the Film and Television Theater, Precious Metals, Biological Products, Communication Equipment, and Chemical Pharmaceutical indexes. The top losers were the Wine ETF, Semiconductor Materials ETF, and Semiconductor Equipment ETF [1]. Important Information - Beijing Business Daily reported that an increase in property income can stimulate consumption, and a rise in wage levels can increase the amount of funds in the stock market, which is the basis for the continued improvement of the A-share market in the future [1][2]. - The relevant person in charge of the Ministry of Industry and Information Technology said that automobile enterprises' initiative to promise "payment terms not exceeding 60 days" is an active response to the national call, a manifestation of social responsibility and corporate responsibility, and is of great significance for building a win-win development ecosystem of "complete vehicle - parts" [1][2]. - The President of Volcengine revealed that the daily average token usage of Doubao's large model exceeded 16.4 trillion, a 137-fold increase compared to when it was first released last year. According to an IDC report, Doubao's large model ranks first in the usage volume of public cloud large model services in China, accounting for 46.4% [1]. - The European Central Bank released a report showing that as the gold price hits new highs, the proportion of gold in global foreign exchange reserves reached 20% last year, surpassing the euro's 16% and ranking second [1]. - Despite the fact that the yields of Southeast Asian sovereign bonds have fallen to record lows, foreign investors are still flocking in, starting a "sell-off of the US" capital migration wave. Investors are avoiding US policy risks and betting on interest rate cuts by Southeast Asian central banks [1]. - NVIDIA CEO Jensen Huang said that NVIDIA is establishing AI technology centers in seven European countries and plans to build more than 20 large AI factories for training and supporting AI models in Europe, with the ultimate goal of establishing a complete AI ecosystem in the region and increasing the AI computing power in the region by 10 times before 2026 [1]. - The EU clearly stated that it refuses to rush into a compromise at the negotiation table, believing that only a principled agreement can be reached in the best - case scenario, and the specific details need to be continued after July. The EU has prepared two rounds of counter - measures covering more than $100 billion worth of US goods. If the negotiation breaks down, the EU's counter - measures will take effect by July 14 at the latest [2]. - US Treasury Secretary Bessent said that the US is willing to extend the current 90 - day tariff suspension period for its major trading partners beyond July 9, as long as they show "good faith" in the ongoing trade negotiations [2]. - Due to the intensification of regional tensions, the US State Department has authorized non - essential personnel and their families to leave Bahrain and Kuwait, and the families of US military personnel in Bahrain can also leave temporarily [2]. - The US core PPI in May was 3.0% year - on - year, the lowest level since August 2024, with the previous value at 3.1% [2]. Market Logic - The market was waiting for the details of the Sino - US framework agreement. The Sino - US economic and trade teams reached a framework agreement, which is beneficial to the A - share market. The increase in property income and wage levels can increase the amount of funds in the stock market, which is the basis for the continued improvement of the A - share market [1][2] Future Outlook - The Sino - US economic and trade teams have reached a framework agreement, stabilizing the global economy. Global asset reallocation is beneficial to A - shares. The four major stock indexes are expected to rise, and the growth style is expected to lead the gains. Overseas "smart money" is optimistic about Chinese assets [2] Trading Strategy - Stock index futures directional trading: Bullish on the four major stock indexes, expecting the growth style to lead the gains [2] - Stock index options trading: Choose to buy out - of - the - money long - term call options on growth - type indexes [2]

ETF Industry News - The three major indices experienced fluctuations and declines, with the Shanghai Composite Index down by 0.18%, the Shenzhen Component Index down by 0.61%, and the ChiNext Index down by 0.68. However, several ETFs in the pharmaceutical and biotechnology sector saw gains, including the Huatai-PB Innovation Drug ETF (517120.SH) up by 1.96%, the Innovation Drug ETF for Shanghai-Hong Kong-Shenzhen (517110.SH) up by 1.86%, and the Innovation Drug ETF for Hong Kong-Shenzhen (159622.SZ) up by 1.80% [1][4][11] - According to Everbright Securities, multiple domestic innovative drug research projects have been selected for the 2025 ASCO conference, indicating a robust trend in domestic pharmaceutical research, particularly in cancer treatment [1][4] - Minsheng Securities highlighted that the innovative drug sector is a key focus for the year, emphasizing areas such as anti-tumor, autoimmune, GLP-1, stem cell, and gene therapy, while also monitoring domestic innovation in pharmaceuticals and medical consumption, especially in the beauty sector [1][4] ETF Market Performance - As of April 2025, the total scale of ETFs in the Shanghai and Shenzhen markets exceeded 4 trillion yuan, with the Shanghai market having 680 ETFs valued at 29,625.45 billion yuan and the Shenzhen market having 467 ETFs valued at 10,947.55 billion yuan [3] - The cross-border ETFs performed the best today, with an average increase of 0.60%, while commodity ETFs had the worst performance, with an average decrease of 0.67% [9] - The top-performing ETFs today included the Huatai-PB Innovation Drug ETF (517120.SH), the Innovation Drug ETF for Shanghai-Hong Kong-Shenzhen (517110.SH), and the Innovation Drug ETF for Hong Kong-Shenzhen (159622.SZ), with respective gains of 1.96%, 1.86%, and 1.80% [11][12] Trading Volume - The top three ETFs by trading volume today were the A500 ETF (512050.SH) with 2.714 billion yuan, the A500 Index ETF (159351.SZ) with 2.466 billion yuan, and the CSI 300 ETF (510300.SH) with 2.285 billion yuan [14][15]

ETF Industry News - The three major indices mostly declined, with several ETFs in the pharmaceutical and biotechnology sector rising, such as the Huatai-PB Innovation Drug ETF (517120.SH) up 3.23% and the Hong Kong-Shenzhen Innovation Drug ETF (159622.SZ) up 2.73% [1] - The pharmaceutical sector continues to rebound, particularly in the innovative drug sub-sector, driven by recent tariff increases between China and the US, which may benefit domestic innovation [2] - Gold prices surged, leading to record inflows into gold-themed ETFs, with 14 gold-themed ETFs collectively attracting over 51 billion yuan from January 1 to April 18, 2025, and their total asset size reaching 145.1 billion yuan, more than doubling from the end of 2024 [3] - Major funds increased their holdings in four leading CSI 300 ETFs during the first quarter, with a total investment of approximately 4.471 billion yuan [4] Market Overview - On April 22, the Shanghai Composite Index rose by 0.25% to 3299.76 points, while the Shenzhen Component Index fell by 0.36% and the ChiNext Index dropped by 0.82% [5] - In terms of sector performance, retail, construction materials, and transportation sectors led the gains, while media, communication, and computer sectors lagged behind [7] ETF Performance - The average performance of commodity ETFs was the best among various categories, with an average increase of 2.78%, while stock-themed index ETFs had the worst performance with an average decline of 0.25% [10] - The top-performing ETFs included the Huatai-PB Innovation Drug ETF (517120.SH) and the Hong Kong-Shenzhen Innovation Drug ETF (159622.SZ), with daily returns of 3.23% and 2.73%, respectively [12][13] Trading Activity - The top three ETFs by trading volume included the CSI 300 ETF (510300.SH) with a trading volume of 2.919 billion yuan, followed by the South China A500 ETF (159352.SZ) at 2.652 billion yuan and the A500 ETF (159338.SZ) at 2.339 billion yuan [15][16]