Market Performance - The Shanghai Composite Index decreased by 0.18% last week, closing at 3990.49 points, with a high of 4034.08 points [1] - The Shenzhen Component Index fell by 1.4%, ending at 13216.03 points, with a peak of 13502.16 points [1] - The ChiNext Index dropped by 3.01%, closing at 3111.51 points, with a maximum of 3236.61 points [1] - In global markets, the Nasdaq Composite Index declined by 0.45%, while the Dow Jones Industrial Average rose by 0.34% and the S&P 500 increased by 0.08% [1] - In the Asia-Pacific region, the Hang Seng Index increased by 1.26% and the Nikkei 225 rose by 0.2% [1] ETF Market Performance - The median weekly return for stock ETFs was -1.05% [2] - The highest weekly return among scale index ETFs was 2.32% for the Yinhua CSI 2000 Enhanced Strategy ETF [2] - The highest weekly return among industry index ETFs was 3.9% for the CMB CSI Hong Kong-Shenzhen 500 Healthcare ETF [2] - The highest weekly return among strategy index ETFs was 2.55% for the Bosera CSI All-Share Free Cash Flow ETF [2] - The highest weekly return among theme index ETFs was 5.92% for the Huaxia CSI Tourism Theme ETF [2] ETF Liquidity - Average daily trading volume for stock ETFs decreased by 3.8%, while average daily trading volume increased by 24.1% [6] - The turnover rate decreased by 0.07% [6] ETF Fund Flows - The top five stock ETFs by fund inflow were: - Southern ChiNext AI ETF with an inflow of 899 million yuan - Huaxia SSE Sci-Tech 50 ETF with an inflow of 734 million yuan - Harvest SSE Sci-Tech Chip ETF with an inflow of 707 million yuan - Huatai-PB CSI 300 ETF with an inflow of 580 million yuan - E Fund ChiNext ETF with an inflow of 556 million yuan [9] - The top five stock ETFs by fund outflow were: - GF CSI A500 ETF with an outflow of 336 million yuan - Southern CSI 1000 ETF with an outflow of 324 million yuan - Harvest CSI A500 ETF with an outflow of 283 million yuan - Guotai CSI Coal ETF with an outflow of 199 million yuan - Hua Bao CSI Bank ETF with an outflow of 192 million yuan [10] ETF Financing and Margin Trading - The financing balance for stock ETFs decreased from 47.9148 billion yuan to 47.7222 billion yuan [11] - The highest financing buy amount was for E Fund ChiNext ETF, totaling 54.5 million yuan [11] ETF Market Size - The total market size for ETFs reached 572.9922 billion yuan, a decrease of 2.968 billion yuan from the previous week [14] - The stock ETF market size was 369.935 billion yuan, accounting for 64.6% of the total ETF market size [16] ETF Issuance and Establishment - No new ETFs were issued last week, but five new ETFs were established [17]

Market Overview - The Shanghai Composite Index fell by 0.07% to close at 4000.14 points, with a daily high of 4020.38 points [1] - The Shenzhen Component Index decreased by 0.36% to 13240.62 points, reaching a high of 13312.53 points [1] - The ChiNext Index dropped by 0.39% to 3122.03 points, with a peak of 3137.58 points [1] ETF Market Performance - The median return of stock ETFs was -0.21% [2] - The highest performing ETFs included: - Huatai-PB SSE Sci-Tech Innovation Board Innovative Drug ETF with a return of 1.99% [4] - Fuguo CSI Hong Kong-Shenzhen Innovative Drug Industry ETF at 1.89% [4] - Guotai CSI Hong Kong-Shenzhen Innovative Drug Industry ETF at 1.85% [4] - The worst performing ETFs included: - Penghua SSE Sci-Tech Innovation Board New Energy ETF with a return of -4.68% [5] - Hua'an CSI Photovoltaic Industry ETF at -4.42% [5] - Fuguo SSE Sci-Tech Innovation Board New Energy ETF at -4.32% [5] ETF Fund Flow - The top three ETFs by fund inflow were: - Huaxia SSE Sci-Tech Innovation Board 50 Component ETF with an inflow of 1.286 billion yuan [6] - Huabao CSI All-Index Securities Company ETF with 582 million yuan [6] - Guotai CSI All-Index Securities Company ETF with 577 million yuan [6] - The top three ETFs by fund outflow were: - Guotai CSI Coal ETF with an outflow of 337 million yuan [7] - Hua'an ChiNext 50 ETF at 294 million yuan [7] - E Fund CSI A500 ETF at 287 million yuan [7] ETF Margin Trading Overview - The highest margin buy amounts were: - Huaxia SSE Sci-Tech Innovation Board 50 Component ETF with 639 million yuan [8] - E Fund ChiNext ETF at 522 million yuan [8] - Guotai CSI All-Index Securities Company ETF with 421 million yuan [8] - The highest margin sell amounts were: - Huatai-PB SSE 300 ETF with 49.49 million yuan [9] - Huaxia SSE 50 ETF at 24.32 million yuan [9] - Fuguo CSI A500 ETF at 14.19 million yuan [9] Industry Insights - Everbright Securities noted that the performance growth trend in the innovative drug industry is expected to continue, driven by strong sales and business development transactions [10] - Guoxin Securities highlighted that the innovative drug sector has shown high revenue growth and profitability recovery, indicating a long-term positive development trend [10]

Market Performance - The Shanghai Composite Index rose by 1.08% last week, closing at 3997.56 points, with a peak of 4012.01 points [1] - The Shenzhen Component Index increased by 0.19%, closing at 13404.06 points, with a high of 13496.7 points [1] - The ChiNext Index saw a rise of 0.65%, ending at 3208.21 points, with a maximum of 3240.34 points [1] - In contrast, major global indices experienced declines, with the Nasdaq Composite down 3.04%, the Dow Jones Industrial Average down 1.21%, and the S&P 500 down 1.63% [1] ETF Market Performance - The median weekly return for stock ETFs was 0.31% [2] - The highest weekly return among scale index ETFs was 2.9% for the Penghua CSI 800 Free Cash Flow ETF [2] - The top-performing industry index ETF was the Southern CSI New Energy ETF, with a return of 5.33% [2] - The highest return in thematic index ETFs was 10.92% for the Huaxia CSI Electric Grid Equipment Thematic ETF [4] ETF Liquidity and Fund Flow - Average daily trading volume for stock ETFs decreased by 15.7%, while average daily trading volume increased by 9.3% [6] - The top five stock ETFs with the highest inflows included the Guotai CSI All-Share Securities Company ETF, which saw an inflow of 400 million yuan [9] - The top five stock ETFs with the largest outflows included the E Fund ChiNext ETF, which experienced an outflow of 290 million yuan [10] ETF Financing and Margin Trading - The financing balance for stock ETFs decreased from 49.1454 billion yuan to 47.9148 billion yuan [11] - The highest financing buy amount was 486 million yuan for the Huaxia SSE Sci-Tech 50 ETF [11] ETF Market Size and Composition - The total market size for ETFs reached 572.989 billion yuan, with stock ETFs accounting for 373.4058 billion yuan [14] - Stock ETFs represent 79.0% of the total number of ETFs and 65.2% of the total market size [16] New ETF Issuance - No new ETFs were issued last week, but eight new ETFs were established, including the Huaxia CSI Photovoltaic Industry ETF [17] Industry Insights - Industrial chain restructuring in the photovoltaic sector is anticipated, with Q3 showing a trend of reduced losses in the main chain [17] - The supply-demand relationship in the photovoltaic industry is expected to recover rapidly, driven by supply-side structural reforms and new technological changes [17]

Core Viewpoint - The ETF market has experienced significant growth in 2023, with industry and thematic ETFs seeing their combined scale increase from less than 600 billion to over 1 trillion yuan, marking a growth of over 77% [1][2]. ETF Market Overview - As of September 30, there are 483 thematic ETFs and 84 industry ETFs, with total scales of 774.79 billion yuan and 287.63 billion yuan respectively, surpassing 1 trillion yuan in total scale [2]. - The combined scale of these ETFs has increased by 462.77 billion yuan this year, compared to a much smaller increase of 330 billion yuan for broad-based ETFs [2]. Fund Flow Dynamics - The shift in investor behavior is evident, with some investors buying more of underperforming ETFs while others take profits from those that have performed well [1][4]. - Notably, the coal ETF, despite a decline of 5.65%, saw its scale grow from 2.8 billion yuan to 11.4 billion yuan, a nearly 300% increase [1][7]. Performance of ETFs - 16 industry and thematic ETFs have seen gains exceeding 80% this year, with 150 products yielding over 50% returns [4]. - The top-performing ETF, the Guotai Chuangye Board AI ETF, has surged by 121.53%, while other notable performers include the Guotai Zhongzheng All Index Communication Equipment ETF and the Yongying Zhongzheng Hong Kong Gold Industry ETF, with increases of 96.19% and 87.3% respectively [4][5]. Sector Analysis - The top-performing ETFs are primarily from two sectors: technology, represented by AI, communication, and chips, and gold stocks [5]. - Conversely, the worst performers include energy and coal ETFs, with declines exceeding 6% [6]. Fund Size and Performance Correlation - Among ETFs with scales exceeding 10 billion yuan, the top three in terms of scale are the Guotai Fund's Securities ETF, the Jiashi Fund's Sci-Tech Chip ETF, and the Huabao Fund's Broker ETF [7]. - The Jiashi Fund's Sci-Tech Chip ETF leads in annual returns at 75.1%, while the only declining product among the large-scale ETFs is the Penghua Fund's Wine ETF, which has dropped over 4% [7][8]. Investment Strategies - The trend of "buying the dip" is evident, with significant inflows into ETFs that have underperformed, while some investors are also taking profits from high-performing ETFs [8]. - The top three ETFs in terms of scale increase this year are the Guotai Fund's Securities ETF, the Huaxia Fund's Robotics ETF, and the Jiashi Fund's Sci-Tech Chip ETF, indicating a mix of strategies among investors [8].

Group 1: Machinery Industry - In August 2025, the production of metal cutting machine tools in China reached approximately 71,000 units, a year-on-year increase of 16.4%, while the cumulative production from January to August was about 564,000 units, up 14.6% year-on-year, indicating a recovery in downstream manufacturing demand [2] - The production of industrial robots in August 2025 was about 64,000 units, a year-on-year increase of 14.4%, with a cumulative production of approximately 521,000 units from January to August, reflecting a year-on-year growth of 29.9% [2] - Manufacturing fixed asset investment in China grew by 5.1% year-on-year from January to August 2025, and cumulative export value increased by 5.9% year-on-year, supporting the stabilization of manufacturing demand [2] Group 2: Lithium Battery Equipment - In August 2025, the sales of new energy vehicles in China reached approximately 1.395 million units, a year-on-year increase of 26.8%, with total sales from January to August amounting to about 9.62 million units, up 36.7% year-on-year [3] - The installed capacity of power batteries in August 2025 was approximately 62.5 GWh, a year-on-year increase of 32.4%, while the total production of power batteries reached 139.6 GWh, up 37.3% year-on-year [3] - Cumulative installed capacity of power batteries from January to August 2025 grew by 43.1% to 417.9 GWh, and total production increased by 54.3% to 970.7 GWh, indicating a robust growth trajectory for the new energy vehicle sector [3] Group 3: Investment Recommendations - The manufacturing PMI in China rose by 0.1 percentage points to 49.4% in August 2025, with key sub-indices such as production and new orders showing improvement, suggesting a recovery in manufacturing supply and demand [4] - The report maintains a "buy" rating for the machinery industry, highlighting opportunities in the general automation sector and lithium battery equipment sector due to the expected recovery in manufacturing demand [5] - Recommended companies include Haomai Technology in the general automation sector and Xianlead Intelligent and Hangke Technology in the lithium battery equipment sector [5]

Core Insights - The launch of the E Fund Shanghai Stock Exchange Sci-Tech Innovation Board New Energy ETF on September 22 marks the total number of Sci-Tech Innovation Board ETFs reaching 101 [1] - The previous listing of the Huatai-PineBridge Shanghai Stock Exchange Sci-Tech Innovation Board Innovative Drug ETF on September 19 pushed the total number of Sci-Tech Innovation Board ETFs to over 100 [1] - The overall management scale of Sci-Tech Innovation Board ETFs is nearly 300 billion, making it the segment with the highest proportion of index investment in A-shares [1] Industry Development - The Sci-Tech Innovation Board has developed a multi-layered index product system covering broad-based, thematic, and strategic indices, with continuous structural optimization and maturation of the ecosystem [1] - Over the past five years, the growth of Sci-Tech Innovation Board ETFs has provided investors with diversified investment tools and has become a significant channel for directing social funds towards "hard technology" enterprises [1] - A complete system has been formed in broad-based indices, represented by the Sci-Tech 50, Sci-Tech 100, Sci-Tech 200, and Sci-Tech Comprehensive Index [1] - Thematic indices cover key areas of new productive forces, including artificial intelligence, chips, new energy, and innovative drugs [1] Future Outlook - Market analysts indicate that the series of indices from the Sci-Tech Innovation Board demonstrate excellent long-term performance and possess notable long-term allocation value [1] - The investment ecosystem of the Sci-Tech Innovation Board is expected to further develop and improve with the implementation of the "Eight Measures" and "1+6" reform policies [1]

Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. Core Viewpoints of the Report - China's innovative drug industry is at a historical inflection point, moving towards the "global leadership" stage, with innovation upgrades, accelerated internationalization, and a profit inflection point [1][18]. - The Sci - Tech Innovation New Drug Index (931852.CSI) can accurately capture the industry's prosperity and core growth targets, with strong performance and fundamental support [1]. - The Huatai - PineBridge Shanghai Sci - Tech Innovation Board Innovative Drug ETF (589120) provides a convenient tool for investors to access the core assets of innovative drugs on the Sci - Tech Innovation Board [1]. Summary According to the Directory 1. Sci - Tech Innovation New Drug Index: Grasp Industry Prosperity and Capture Growth Targets - **Industry Representation and Growth Capture Ability**: The Sci - Tech Innovation New Drug Index, also known as the Shanghai Sci - Tech Innovation Board Innovative Drug Index (931852.CSI), selects 30 large - cap stocks related to innovative drugs from the Sci - Tech Innovation Board, reflecting the overall performance of the sector [5]. - **Dispersed Component Weights**: The index focuses on high - quality leading companies. Its weight distribution is relatively dispersed, with companies in the 30 - 50 billion yuan market - cap range having a high proportion. The top ten weighted stocks account for 63.85% of the total weight, and most stocks have shown an upward trend after being included in the index [7][9]. - **Strong Index Elasticity**: The Shanghai Sci - Tech Innovation Board Innovative Drug Total Return Index has a more prominent upward trend compared to similar indices. Since the second quarter of 2025, its cumulative increase of 82.66% and risk - adjusted return - to - risk ratio of 2.31 are significantly higher than those of similar indices [11][13]. - **Revenue Growth and Profit Improvement Expectations**: The index's constituent stocks are expected to have high - speed revenue growth and improved profitability. Market consensus predicts that the total revenue will continue to grow, and the net profit attributable to shareholders is expected to turn positive in 2025 and reach 7.537 billion yuan in 2026 [14]. 2. China's Innovative Drug Industry Enters a New Stage of "Global Leadership" - **Innovation Upgrade**: China has achieved a transformation from "imitation - following" to "original innovation" in the field of innovative drugs. The number of self - developed First - in - Class (FIC) drugs has increased from 9 in 2015 to 120 in 2024, accounting for 31% of the global pipeline, second only to the United States. Chinese pharmaceutical companies also show global competitiveness in popular target areas [21][24]. - **Accelerated Internationalization**: The internationalization of domestic innovative drugs is accelerating. Nine domestic innovative drugs from eight companies have been approved for listing in the United States. The license - out business has also entered a period of explosive growth, with an increase in upfront payments and total transaction amounts [27][29]. - **Profit Inflection Point**: With the commercialization of innovative drugs and the normalization of external licensing, Chinese innovative pharmaceutical companies have reached a profit inflection point. For example, the sales of Vemurafenib of Alis in 2024 reached 3.5 billion yuan, a year - on - year increase of 77%, and the global sales of Zanubrutinib of BeiGene in 2024 were 2.6 billion US dollars (about 19 billion yuan), a year - on - year increase of 105% [33]. 3. Huatai - PineBridge Shanghai Sci - Tech Innovation Board Innovative Drug ETF (589120) - The fund is an index fund under Huatai - PineBridge Fund, with Luo Hao as the proposed fund manager. It has a management fee of 0.50% and a custody fee of 0.10%. It uses a full - replication method to track the Shanghai Sci - Tech Innovation Board Innovative Drug Index, aiming to minimize tracking deviation and error [1][35][36]. - The fund will be issued from August 25 to September 5, 2025, with different subscription rates based on the amount of subscription shares [37][38]. 4. Fund Manager Information - Huatai - PineBridge Fund was established in February 2005. It is a first - class comprehensive asset management company in China, known as the "stock - picking expert". It has a complete range of business licenses and a well - developed product layout. As of August 21, 2025, it has 61 non - monetary ETF products, with a total scale of over 93.6 billion yuan [1][39].

Group 1 - The Huatai-PineBridge STAR Market Innovative Drug ETF (589123) will be available for subscription from August 25, 2025, to September 5, 2025 [1] - The fund is managed by Huatai-PineBridge Fund Management, with Luo Hao serving as the fund manager [1] - The performance benchmark for the fund is the Shanghai Stock Exchange STAR Market Innovative Drug Index return [1]

Report's Investment Rating for the Industry No investment rating for the industry is provided in the report. Core Views of the Report - The Chinese innovative drug industry is entering a new stage of "global leadership" with policy support, showing trends of innovation upgrade, accelerated internationalization, and reaching a profit inflection point [1][20]. - The Sci - Tech Innovative Drug Index (931852.CSI) can accurately capture the industry's prosperity and core growth targets, with strong performance, elastic growth, and solid fundamental support [1]. - The Huatai - PineBridge Shanghai Sci - Tech Innovation Board Innovative Drug ETF (589120) is a convenient tool for investors to access the core assets of innovative drugs on the Sci - Tech Innovation Board, closely tracking the index [1]. - The fund manager, Huatai - PineBridge Fund, is a leading comprehensive asset management company with a good reputation and a large number of non - monetary ETF products [1]. Summary According to the Directory 1. Sci - Tech Innovative Drug Index: Grasping Industry Prosperity and Capturing Growth Targets - **Strong Industry Representation and Growth - Capturing Ability**: The index, also known as the Shanghai Sci - Tech Innovation Board Innovative Drug Index, selects 30 large - market - cap stocks related to innovative drugs from the Sci - Tech Innovation Board, reflecting the overall performance of the sector [1][3][5]. - **Dispersed Component Weights**: The index's weight distribution is relatively dispersed, with a high proportion of companies with a market cap between 30 billion and 50 billion RMB. The top ten weighted stocks account for 63.85% of the total weight as of August 21, 2025, and most component stocks have shown an upward trend after being included in the index [7][10]. - **High Elasticity and Prominent Recent Performance**: Since the second quarter of 2025, the index has had a cumulative increase of 82.66% and a risk - adjusted return - to - risk ratio of 2.31, significantly outperforming similar innovative drug indices [1][12][14]. - **Dual Investment Guarantees**: The index's constituent stocks are expected to have high - speed revenue growth and improved profitability. The total revenue is predicted to keep growing, and the net profit attributable to shareholders is expected to turn positive in 2025 and reach 7.537 billion RMB in 2026 [1][15]. 2. The Chinese Innovative Drug Industry Reaches a Historical Inflection Point and Moves Towards "Global Leadership" - **Innovation Upgrade**: China has achieved a shift from "imitation - following" to "original innovation", with an increasing number of First - in - Class (FIC) drugs developed by Chinese pharmaceutical companies. In 2024, the number of self - developed FIC drugs reached 120, accounting for 31% of the global pipeline. Chinese companies also show global competitiveness in popular target areas [24][28]. - **Accelerated Internationalization**: The internationalization of Chinese innovative drugs is on the rise, with both independent overseas expansion and license - out models booming. As of now, 9 domestic innovative drugs from 8 companies have been approved for listing in the US, and license - out transactions have increased significantly [31][33][34]. - **Profit Inflection Point**: With the commercialization of innovative drugs and the normalization of external licensing, Chinese innovative pharmaceutical companies are reaching a profit inflection point. For example, the sales of some drugs like Ailisi's Vemurafenib and BeiGene's Zanubrutinib have increased significantly, and some companies are starting to receive milestone payments [38]. 3. Huatai - PineBridge Shanghai Sci - Tech Innovation Board Innovative Drug ETF (589120) - The fund is a passive index - type ETF product under Huatai - PineBridge Fund, with Luo Hao as the拟任 fund manager. It uses the full - replication method to track the Shanghai Sci - Tech Innovation Board Innovative Drug Index, aiming for a daily average tracking deviation of no more than 0.2% and an annualized tracking error of no more than 2%. The management fee is 0.50% and the custody fee is 0.10% [1][40][41]. 4. Fund Manager Information - Huatai - PineBridge Fund was established in 2005 and is a leading comprehensive asset management company in China. It has a complete range of business licenses and a well - diversified product portfolio. As of August 21, 2025, it has 61 non - monetary ETF products with a total scale of over 93.6 billion RMB [1][44].

Group 1 - On August 25, over 30 public funds were launched simultaneously, including multiple ETF products such as Penghua ChiNext Comprehensive ETF, Huatai-PineBridge SSE STAR Market Innovative Drug ETF, E Fund CSI Financial Technology Theme ETF, and Guolian An CSI A500 Dividend Low Volatility ETF [1] - The Huazhong Hang Seng Hong Kong Stock Connect Technology ETF was listed for trading on August 25, with over 1.4 billion shares issued. As of August 18, individual investors held 95.97% of the shares [1] - On the same day, the People's Bank of China announced a 600 billion yuan MLF operation with a one-year term, conducted through fixed quantity, interest rate bidding, and multiple price level bidding [1]