Group 1 - The Hong Kong pharmaceutical sector showed strong performance on February 10, with the Hang Seng Hong Kong Stock Connect Innovative Drug Index rising by 2.7% and the CSI Hong Kong Stock Connect Pharmaceutical and Health Comprehensive Index increasing by 2.5% [1] - The rebound in the innovative drug sector is likely driven by a surge in business development (BD) transactions and high growth in earnings forecasts [1] - Significant collaborations have been established, including a record-breaking $18.5 billion partnership between CSPC Pharmaceutical and AstraZeneca, with an upfront payment of $1.2 billion, and an $8.85 billion deal between Innovent Biologics and Eli Lilly, featuring an upfront payment of $0.35 billion [1] - Since 2026, the total upfront payment scale for innovative drug BD collaborations has surpassed the highest quarterly level of 2025, with total transaction amounts reaching $33.28 billion, indicating a rapid trend of industry expansion [1] - Leading companies have provided strong earnings forecasts, with Innovent Biologics, Rongchang Biologics, and Junshi Biosciences projecting revenues of approximately $11 billion, $3.25 billion, and $2.5 billion for 2025, reflecting year-on-year growth rates of 45%, 89%, and 32% respectively, which supports a robust fundamental outlook for the sector [1] Group 2 - The Hang Seng Hong Kong Stock Connect Innovative Drug Index is one of the first ETFs to achieve a "purity" of 100%, accurately aggregating leading companies in the Hong Kong innovative drug sector [2] - The CSI Hong Kong Stock Connect Pharmaceutical and Health Comprehensive Index selects 50 larger market capitalization companies from the pharmaceutical and health industry within the Hong Kong Stock Connect, covering areas such as innovative drugs and medical devices [2] - Investors can track the development opportunities in the pharmaceutical industry through products like the E Fund Hong Kong Stock Connect Innovative Drug ETF (159316) and the E Fund Hong Kong Stock Connect Pharmaceutical ETF (513200) [2]

Group 1 - The core viewpoint of the article highlights the performance of the E Fund Hong Kong Stock Connect Medical ETF (513200), which experienced a decline of 0.73% on February 5, with a trading volume of 135 million yuan [1] - The fund's total shares decreased by 2 million, bringing the latest total to 1.53 billion shares, with a reduction of 166.7 million shares over the past 20 trading days [1] - The latest net asset value of the fund is calculated to be 1.693 billion yuan [1] Group 2 - The performance benchmark for the E Fund Hong Kong Stock Connect Medical ETF is the CSI Hong Kong Stock Connect Medical and Health Comprehensive Index return rate, adjusted using the valuation exchange rate [1] - The fund is managed by E Fund Management Co., Ltd., with the fund manager being Wu Chendong [1] - Since its establishment on January 19, 2022, the fund has achieved a return of 10.61%, with a return of 0.21% over the past month [1]

Group 1 - The Hong Kong stock market opened lower but rebounded, with the consumer sector experiencing significant gains and technology and internet sectors recovering in the afternoon. Southbound funds recorded a net inflow of nearly 25 billion HKD, marking a five-month high [1] - The CSI Hong Kong Stock Connect Consumer Theme Index rose by 2.8%, while the CSI Hong Kong Stock Connect Internet Index increased by 0.9%. The Hang Seng Hong Kong Stock Connect New Economy Index and Hang Seng Technology Index both rose by 0.7%, and the CSI Hong Kong Stock Connect Healthcare Comprehensive Index increased by 0.5% [1] - Data from Wind indicates that the Hong Kong Stock Connect Internet ETF managed by E Fund (513040) and the Hang Seng Technology ETF (513010) saw net inflows of 1.08 billion HKD and 330 million HKD respectively over the past three trading days [1] Group 2 - The Hong Kong Stock Connect Healthcare ETF managed by E Fund tracks the CSI Hong Kong Stock Connect Healthcare Comprehensive Index, which consists of 50 liquid and large-cap stocks within the healthcare sector, with the healthcare industry accounting for over 90% of the index [5] - The Hong Kong Stock Connect Internet ETF managed by E Fund tracks the CSI Hong Kong Stock Connect Internet Index, which is composed of stocks from 30 leading internet companies, primarily including information technology and consumer discretionary sectors [7]

Group 1 - The core viewpoint of the article indicates that the recent decline in various Hong Kong stock indices is primarily due to a technical pullback following a rapid short-term rise, rather than a signal of a trend reversal [1] - The major indices mentioned include the CSI Hong Kong Stock Connect Consumer Theme Index down by 0.7%, the CSI Hong Kong Stock Connect Internet Index down by 2.7%, the Hang Seng Hong Kong Stock Connect New Economy Index down by 3.1%, the Hang Seng Technology Index down by 3.4%, and the CSI Hong Kong Stock Connect Healthcare Comprehensive Index down by 3.5% [1] - Huatai Securities believes that the three core driving factors for the first quarter remain solid: improved liquidity environment, resonance of domestic and foreign capital, and upward revision of corporate profit expectations [1] Group 2 - The Hong Kong Stock Connect Healthcare ETF tracks the CSI Hong Kong Stock Connect Healthcare Comprehensive Index, which consists of 50 liquid and large-cap stocks in the healthcare sector, with a weight exceeding 90% [3] - The Hong Kong Stock Connect Internet ETF tracks the CSI Hong Kong Stock Connect Internet Index, composed of 30 leading internet companies, primarily from the information technology and consumer discretionary sectors [3]

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - The report presents several ETF strategy indices constructed by Huabao Research and tracks their performance and positions on a weekly basis, aiming to help investors convert quantitative models or subjective views into practical investment strategies [11] 3. Summary by Relevant Catalog 3.1 ETF Strategy Index Tracking - **Overall Performance**: The table shows the performance of various ETF strategy indices last week. The Huabao Research Quantitative Windmill ETF Strategy Index had the highest weekly excess return of 2.56%, while the Huabao Research SmartBeta Enhanced ETF Strategy Index had the lowest weekly excess return of -2.76% [12] 3.1.1 Huabao Research Size Rotation ETF Strategy Index - **Strategy**: It uses multi - dimensional technical indicator factors and a machine - learning model to predict the return difference between the Shenwan Large - Cap Index and the Shenwan Small - Cap Index. It outputs weekly signals to predict the strength of the indices in the next week and determines positions accordingly to obtain excess returns [13] - **Performance**: As of 2026/1/30, the excess return since 2024 was 29.34%, the excess return in the past month was 5.89%, and the excess return in the past week was - 1.86%. The index's positions include 50% in the CSI 500ETF and 50% in the CSI 1000ETF [13][17] 3.1.2 Huabao Research SmartBeta Enhanced ETF Strategy Index - **Strategy**: It uses price - volume indicators to time self - built Barra factors and maps timing signals to ETFs based on their exposure to 9 major Barra factors to achieve market - outperforming returns. The selected ETFs cover mainstream broad - based index ETFs and some style and strategy ETFs [17] - **Performance**: As of 2026/1/30, the excess return since 2024 was 20.15%, the excess return in the past month was - 2.11%, and the excess return in the past week was - 2.76%. The index's positions are mainly in several science - innovation and growth - style ETFs [17] 3.1.3 Huabao Research Quantitative Windmill ETF Strategy Index - **Strategy**: It starts from a multi - factor perspective, including the grasp of medium - to - long - term fundamentals, tracking of short - term market trends, and analysis of the behavior of various market participants. It uses valuation and crowding signals to indicate industry risks and multi - dimensionally digs out potential sectors to obtain excess returns [20] - **Performance**: As of 2026/1/30, the excess return since 2024 was 51.39%, the excess return in the past month was 6.51%, and the excess return in the past week was 2.56%. The index's positions are mainly in commodity - related and financial - related ETFs [20][25] 3.1.4 Huabao Research Quantitative Balance ETF Strategy Index - **Strategy**: It adopts a multi - factor system, including economic fundamentals, liquidity, technical analysis, and investor behavior factors, to construct a quantitative timing system for trend analysis of the equity market. It also builds a prediction model for market large - and small - cap styles to adjust the equity market position distribution and obtain excess returns through comprehensive timing and rotation [24] - **Performance**: As of 2026/1/30, the excess return since 2024 was - 10.24%, the excess return in the past month was 0.48%, and the excess return in the past week was - 0.36%. The index's positions include bonds and equity - based ETFs [24][27] 3.1.5 Huabao Research Hot - Spot Tracking ETF Strategy Index - **Strategy**: It uses strategies such as market sentiment analysis, tracking of major industry events, investor sentiment and professional opinions, policy and regulatory changes, and historical analysis to track and dig out hot - spot index target products in a timely manner, constructing an ETF portfolio that can capture market hot spots and providing short - term market trend references for investors [27] - **Performance**: As of 2026/1/30, the excess return in the past month was 6.21%, and the excess return in the past week was 3.21%. The index's positions are mainly in commodity, Hong - Kong - stock, and short - term financing ETFs [27][30] 3.1.6 Huabao Research Bond ETF Duration Strategy Index - **Strategy**: It uses bond market liquidity and price - volume indicators to screen effective timing factors and predicts bond yields through machine - learning methods. When the expected yield is below a certain threshold, it reduces the long - duration positions in the bond investment portfolio to improve long - term returns and drawdown control [30] - **Performance**: As of 2026/1/30, the excess return in the past month was 0.40%, and the excess return in the past week was 0.14%. The index's positions are mainly in bond - related ETFs [30][33]

Market Performance - The Hong Kong Stock Connect innovative drug ETF managed by E Fund (159316) experienced a strong rebound today, rising by 3.3% with a trading volume increasing to 500 million [1] Core Drivers - Liquidity expectations have improved as the U.S. December non-farm payroll data fell short of expectations, leading to heightened market anticipation for a Federal Reserve interest rate cut, with the CME "FedWatch" indicating a 40.7% probability of a rate cut in March [2] Industry Updates - Research and Development Progress: Innovent Biologics' anti-CTLA-4 monoclonal antibody "Daboshu" has been approved for market launch as the first domestic drug of its kind [2] - Business Development Activity: GSK has entered into a collaboration with AstraZeneca worth over $2 billion, setting a record for domestic clinical-stage small molecule anti-cancer drug collaborations. The total transaction amount for outbound licensing in 2025 is projected to reach $135.655 billion [2]