Market Performance - The Hang Seng Healthcare Index decreased by 2.71% as of October 23, 2025, with mixed performance among constituent stocks [2] - The Hang Seng Medical ETF (513060) fell by 2.41%, with a latest price of 0.65 CNY, but has seen a 3.42% increase over the past three months [2] - The Hong Kong Stock Connect Innovative Drug Selection Index dropped by 3.70%, with the Hong Kong Innovative Drug Selection ETF (520690) down by 3.26% [4][5] - The CSI Pharmaceutical 50 Index declined by 0.95%, while the Pharmaceutical 50 ETF (159838) decreased by 0.96% [6] Liquidity and Trading Activity - The Hang Seng Medical ETF had a turnover of 11.25% and a trading volume of 763 million CNY, indicating active market participation [2] - The Hong Kong Innovative Drug Selection ETF recorded a turnover of 21.44% with a trading volume of approximately 98.5 million CNY [5] - The Pharmaceutical 50 ETF had a turnover of 1.67% and a trading volume of 2.71 million CNY [6] Key Events and Trends - The flu season has started early, leading to a rise in flu-related stocks, with companies like Hendi Pharmaceutical and Duori Pharmaceutical seeing significant gains [7] - The ongoing ESMO (European Society for Medical Oncology) conference has heightened interest in Chinese pharmaceutical companies, showcasing clinical data from firms like Heng Rui Pharmaceutical and Ke Long Bo Tai [7] - The collaboration between Sinopharm and Takeda is expected to enhance foreign investment confidence in Chinese innovative drug assets [7] Industry Insights - The Chinese innovative drug sector is accelerating its international presence, with 135 licensing-out transactions recorded from January to October 17, 2025, totaling over 102.9 billion USD [7] - The ESMO conference highlighted 23 LBA studies led by Chinese scholars, demonstrating the global competitiveness of China's innovative drug pipeline [7] - The aging population is increasing the demand for chronic disease treatments, while the optimization of the medical insurance payment system and AI technology applications are injecting new vitality into the industry [8] ETF Overview - The Hang Seng Medical ETF has a current scale of 6.865 billion CNY, ranking in the top third among comparable funds [8] - The Hong Kong Innovative Drug Selection ETF reached a new high with a scale of 468 million CNY [10] - The Pharmaceutical 50 ETF tracks the top 50 pharmaceutical companies in China, with the top ten stocks accounting for 59.46% of the index [11]

Group 1: ETF Naming and Differentiation - Many ETFs have undergone renaming this year to enhance their recognizability [1] - Despite renaming, several ETFs still have similar names, making it difficult to distinguish between them, especially when they track different indices [1] Group 2: Medical and Health ETFs - There are two ETFs named Medical and Health ETF: one managed by Huaxia Fund tracking the Shanghai Stock Exchange Medical and Health Industry Index, and another managed by GF Fund tracking the CSI All Share Medical and Health Index [2][3] - The Shanghai Stock Exchange Medical and Health Industry Index consists of 50 constituent stocks, while the CSI All Share Medical and Health Index includes 111 constituent stocks, fully encompassing the former [4][5] Group 3: Performance Comparison - The Shanghai Stock Exchange Medical and Health Industry Index has outperformed the CSI All Share Medical and Health Index over the past year to five years [6][7] Group 4: Medical ETFs - Two ETFs are named Medical ETF: one managed by Huatai-PB Fund tracking the CSI Medical and Health Index with 80 constituent stocks, and another managed by E Fund tracking the CSI 300 Medical and Health Index with 25 constituent stocks [8][9] - The CSI Medical and Health Index fully covers the constituent stocks of the CSI 300 Medical and Health Index [9] Group 5: Performance of Medical ETFs - The CSI Medical and Health Index has shown slightly better performance than the CSI 300 Medical and Health Index over the past year to five years [10] Group 6: Medical 50 ETFs - There are two ETFs named Medical 50 ETF: one managed by Bosera Fund tracking the CSI Medical 50 Index with 50 constituent stocks, and another managed by Huaan Fund tracking the CSI Sub-Industry Medical Theme Index, also with 50 constituent stocks [11][12] - Both indices share 25 common constituent stocks, with each having 25 unique stocks [12] Group 7: Performance of Medical 50 ETFs - The CSI Sub-Industry Medical Theme Index has outperformed the CSI Medical 50 Index in the past year and three years, while the latter has slightly better performance over the past five years [13]

ETF Industry News - The three major indices experienced fluctuations and declines, with the Shanghai Composite Index down by 0.68%, the Shenzhen Component Index down by 1.62%, and the ChiNext Index down by 1.92%. However, several ETFs in the pharmaceutical and biotechnology sectors rose against the trend, including the Pharmaceutical 50 ETF (512120.SH) which increased by 0.72% [1][3] - According to Zhongyou Securities, the overall valuation of the pharmaceutical sector remains at historically low levels, indicating significant upside potential. By 2025, with ongoing optimization of pharmaceutical policies, government consumption stimulus, and local debt guidance, the sector is expected to have strong rebound momentum, particularly for varieties with improved cash flow and profitability [1] Global Gold ETF Market - The World Gold Council reported that global physical gold ETFs saw inflows of approximately $11 billion in April, driven by rising gold prices and continued fund inflows. As a result, the total assets under management for global gold ETFs reached $379 billion by the end of April [2] Market Overview - On May 15, the A-share market and major overseas indices collectively declined, with the Shanghai Composite Index closing at 3380.82 points, the Shenzhen Component Index at 10186.45 points, and the ChiNext Index at 2043.25 points. The highest intraday points were 3402.87, 10324.84, and 2076.04 respectively [3] - In terms of sector performance, the beauty care, coal, and public utilities sectors ranked highest with daily increases of 3.68%, 0.42%, and 0.12% respectively, while the computer, communication, and electronics sectors ranked lowest with declines of -2.97%, -2.45%, and -2.12% respectively [5] ETF Market Performance - The overall performance of ETFs showed that money market ETFs had the best average daily change at 0.00%, while commodity ETFs had the worst performance with an average decline of -2.55% [7] - The top-performing ETFs included the Chuang 50 ETF (159371.SZ) with a daily increase of 2.25%, the Greater Bay Area ETF (512970.SH) with an increase of 1.15%, and the Pharmaceutical 50 ETF (512120.SH) with an increase of 0.72% [10][11] Trading Volume of ETFs - The top three ETFs by trading volume were the A500 ETF (512050.SH) with a trading volume of 3.724 billion yuan, the CSI 300 ETF (510300.SH) with 3.288 billion yuan, and the A500 Index ETF (159351.SZ) with 2.707 billion yuan [13][14]

Group 1 - The ETF market showed mixed performance with the China 50 ETF (159371) leading gains at 2.25% [1] - The Greater Bay Area ETF (512970) increased by 1.15%, while the Pharmaceutical 50 ETF (512120) rose by 0.72% [1] - On the downside, the S&P Consumer ETF (159529) fell significantly by 5.54%, followed by the Saudi ETF (159329) which dropped 4.32%, and the S&P 500 ETF (159612) decreased by 3.97% [1]

Core Viewpoint - The Chinese pharmaceutical industry is experiencing significant developments, particularly in the innovative drug sector, with various ETFs showing positive performance and a notable IPO from a leading company, Heng Rui Medicine [1][5][6]. Group 1: ETF Performance - Multiple ETFs related to the pharmaceutical sector have shown positive daily and year-to-date performance, with the Medical 50 ETF rising by 0.96% today and 2.93% year-to-date [3]. - The Innovation Drug Hong Kong and Shanghai ETF has a year-to-date increase of 12.75%, indicating strong investor interest in innovative pharmaceuticals [3]. Group 2: Industry Developments - The U.S. Treasury Secretary expressed a desire to avoid complete decoupling from China, emphasizing the importance of Chinese raw materials in the U.S. pharmaceutical supply chain [5]. - Heng Rui Medicine has initiated a global public offering of H-shares, aiming to raise up to 130.8 billion HKD, which would be the highest fundraising amount for a Hong Kong pharmaceutical IPO in five years [5]. Group 3: Financial Performance - The A-share pharmaceutical industry is projected to see a slight revenue decline of 0.5% in 2024, with significant performance disparities among different sectors [6]. - The innovative drug sector is expected to continue its rapid growth, while other segments like vaccines and ICL are facing challenges [6]. Group 4: Analyst Insights - Analysts recommend focusing on innovative drug companies with global commercialization potential and those with strong order growth in the CDMO sector [7]. - The AI healthcare sector is highlighted as a new investment opportunity, with advancements in AI technology reshaping the industry [7][8].