Core Insights - The recent issuance of the "Measures to Support the High-Quality Development of Innovative Drugs" by the National Medical Insurance Administration and the National Health Commission marks a significant breakthrough in China's innovative drug payment system, focusing on a dual-track payment model of "medical insurance + commercial insurance," research and development support, and expedited drug availability [1][1][1] Industry Summary - The new policy establishes a "commercial insurance innovative drug catalog," promoting collaboration between medical insurance and commercial insurance to provide multi-layered payment guarantees for high-value new drugs, addressing accessibility bottlenecks for innovative drugs [1][1] - The policy encourages insurance capital to directly invest in innovative drug research and development, fostering patient capital to accelerate the transformation of research pipelines [1][1] - The biopharmaceutical industry is showing signs of a turning point, with nearly 40 innovative drugs approved in the first half of 2025, leading to a surge in demand for upstream life science services, alongside a trend of domestic substitution catalyzed by tariff barriers [1][1] - Major industry players are accelerating mergers and acquisitions, enhancing the overall sector's prosperity, with companies like King’s Ray Biotech and Nanwei Technology benefiting from the innovative drug business development boom [1][1] - Data indicates that commercial health insurance premium income will reach 977.3 billion yuan in 2024, forming a collaborative foundation with medical insurance funds, while patient five-year survival rates have improved to 43.7%, validating the clinical value of innovative drugs [1][1] Company Summary - The E Fund Medical ETF Linked Fund (Class A: 001344; Class C: 007883) aligns well with this trend, closely tracking the CSI Medical and Health Index, covering core areas such as innovative drugs, biotechnology, and medical devices, demonstrating both industry representation and balance [1][1] - The fund features efficient and transparent operations, primarily tracking the E Fund CSI 300 Medical ETF (512010) with an annual management fee rate of only 0.5%, making it accessible for ordinary investors starting with an investment of 10 yuan [1][1] - The underlying ETF has ample liquidity, ensuring smooth capital inflows and outflows, and as of July 10, 2025, the medical index valuation is reasonable, with a price-to-earnings ratio of approximately 29 times, showing steady returns driven by favorable policies [1][1]

Group 1 - The pharmaceutical sector has led the market with a 50.88% increase in the Hang Seng Healthcare Index this year, driven by innovative drugs and CXO services [1] - Three main drivers are contributing to the industry's value reassessment: policy benefits, technological breakthroughs, and capital inflow [1] - The E Fund Pharmaceutical ETF Connect Fund has achieved a 15.29% return over the past year, outperforming the CSI 300 Index, with a fund size exceeding 20.6 billion yuan [1] Group 2 - The current pharmaceutical industry is supported by both policy and demand, with improved negotiation rules for medical insurance and a solid growth in medical spending due to aging and consumption upgrades [1] - Core assets like WuXi AppTec and Mindray Medical are still recognized despite short-term pressures, with 15 out of 18 institutions giving a "buy" rating to Kelun Pharmaceutical [1] - The E Fund Pharmaceutical ETF Connect C has shown strong defensive characteristics, with a 6.58% return over the past three months, outperforming the 300 Pharmaceutical Index [1] Group 3 - The E Fund Pharmaceutical ETF Connect Fund offers a cost-effective way for investors to access leading pharmaceutical companies, with a current PE ratio of 28.61, below the five-year average [2] - The fund's management fee is only 0.5%, significantly lower than the typical 1.5% for actively managed pharmaceutical funds, making it attractive for investors [2] - A "pyramid-style" accumulation strategy is recommended for investors, with short-term traders focusing on the C share class and long-term investors on the A share class [2]