Group 1 - The core viewpoint is that the expectation of a Federal Reserve interest rate cut is boosting sentiment in the pharmaceutical sector, with the Medical Innovation ETF (516820.SH) rising by 1.04% [1] - Key stocks such as Haisco (002653), Baili Tianheng (688506), and Kanghong Pharmaceutical (002773) saw significant increases of 4.86%, 3.97%, and 3.91% respectively [1] - The U.S. July core CPI rose by 0.3%, slightly exceeding expectations, while inflation for tariff-sensitive goods remained moderate, reinforcing the expectation of a 25 basis point rate cut in September [1] Group 2 - Longjiang Securities noted that despite the typical vacation period for overseas pharmaceutical executives in July and August, there has been a notable acceleration in overseas expansion, with Chinese innovative drugs reaching $30 billion in exports in just one and a half months [2] - The acceleration in overseas expansion is attributed to pressures in the overseas industry and an increase in the "new" content of domestic innovative drugs [2] - The expectation of a weaker U.S. economy and employment data is likely to accelerate the pace of Federal Reserve rate cuts, enhancing global liquidity and benefiting technology stocks, which may provide an opportunity for investors to capitalize on the rebound in core pharmaceutical assets through the Medical Innovation ETF (516820) [2]

Group 1 - The Hong Kong stock market for innovative drugs is experiencing a rebound, with stocks like Innovent Biologics, Kintor Pharmaceutical, and BeiGene showing strength, as the Hang Seng Innovative Drug Index rose by 1.1% as of 9:40 AM [1] - The Hang Seng Innovative Drug ETF (159316) saw a trading volume exceeding 50 million yuan, marking its highest scale at 1.16 billion yuan since inception, following four consecutive trading days of capital inflow [1] - The National Healthcare Security Administration announced the preliminary review of 121 drug generic names for the commercial insurance innovative drug directory, with monoclonal antibody injections being the main focus, particularly PD-(L)1 monoclonal antibodies, involving companies like Lepu Biopharma, Hengrui Medicine, and others [1] Group 2 - CITIC Securities expressed a long-term positive outlook on the innovative drug sector, emphasizing the importance of innovation-driven strategies, internationalization, and reforms in outpatient marketing models [1] - The new compilation scheme for the Hang Seng Innovative Drug Index has officially taken effect, excluding CXO companies and focusing solely on innovative drug firms, achieving a "purity" of 100% [1] - Backtesting indicates that the adjusted index has higher annualized returns and Sharpe ratios since its release on July 10, 2023, with the Hang Seng Innovative Drug ETF (159316) being the only product tracking this index, aiding investors in accurately grasping industry trends [1]