Core Viewpoint - The stock of pharmaceutical company Yaojie Ankang (2617.HK) has experienced extreme volatility, soaring over 50 times post-IPO and then plummeting 53.73% in a single day, highlighting concerns about the stock's liquidity and the mechanisms of index inclusion [2][3][4]. Group 1: Stock Performance - Yaojie Ankang's stock price closed at 149.9 HKD per share on September 19, with a maximum drawdown of 78% within just four trading days, leading to a market capitalization drop from nearly 270 billion HKD to 59.4 billion HKD [3]. - The stock was listed on June 23 at an IPO price of 13.15 HKD per share, with a market cap of approximately 5.2 billion HKD, and saw a steady increase to 54.15 HKD per share by the end of August [4]. - The stock price surged dramatically after being included in multiple Hang Seng indices on September 8, with increases of 77.09% and 115.58% recorded on September 12 and 15, respectively [5]. Group 2: Market Reactions and ETF Involvement - The extreme fluctuations in Yaojie Ankang's stock price have led to passive buying by several ETFs tracking the National Index of Hong Kong Innovative Drugs, raising concerns about the ETF's role in high-level buying at inflated prices [3][7]. - The largest ETF tracking this index bought 3 million shares of Yaojie Ankang on September 15, representing about 2.62% of the fund's net value, contributing to significant capital inflow during the stock's volatility [7]. Group 3: Index Inclusion and Regulatory Concerns - The rapid inclusion of Yaojie Ankang in the index has sparked discussions about the prudence of current index compilation rules, particularly regarding the lack of an observation period for new stocks [8][9]. - Concerns have been raised about the transparency and timeliness of information regarding index adjustments, which can lead to severe supply-demand imbalances and extreme stock price fluctuations [9]. - Recommendations have been made to adjust the initial inclusion ratio for new stocks and to enhance the assessment of liquidity factors to mitigate the impact of passive investment strategies on stocks with small trading volumes [9].

Core Viewpoint - The stock price of the Hong Kong innovative drug company, Yaojie Ankang, has experienced significant volatility due to its recent inclusion in multiple indices, leading to passive buying by related ETFs and sparking widespread investor discussion on social media [1][2]. Group 1: Stock Performance - Yaojie Ankang was listed on June 23, 2025, and initially saw a steady increase in stock price until its inclusion in the Hong Kong Stock Connect on September 8, which triggered a surge in buying activity [1]. - Following its inclusion, the stock price skyrocketed, with a 77.09% increase on September 12 and a further 115.58% rise on September 15 [1]. - However, on September 16, the stock price plummeted by 53.73%, dropping from 679.5 HKD to 192 HKD, illustrating extreme volatility [2]. Group 2: ETF Impact - The inclusion of Yaojie Ankang in the National Index of Hong Kong Innovative Drugs led to significant passive buying by ETFs, with one major ETF purchasing 3 million shares worth approximately 578 million HKD, accounting for about 2.62% of its net asset value [2][3]. - The total scale of ETFs tracking the National Index is approximately 35.963 billion HKD, suggesting a passive buying amount of around 940 million HKD [2]. Group 3: Index Adjustment and Methodology Issues - The adjustment of the National Index was not publicly announced in advance, leading to a lack of awareness among investors regarding Yaojie Ankang's inclusion [3]. - The index's sample selection criteria have been criticized for potential loopholes, as Yaojie Ankang had been listed for less than three months and did not fully meet the trading volume requirements [4]. - The index's selection method is considered simplistic, failing to account for factors like liquidity, which contributed to Yaojie Ankang's price volatility due to its small float [4]. Group 4: Broader Market Implications - The expansion of ETFs, surpassing 5 trillion HKD, has made passive funds a significant force in market movements, particularly during quarterly adjustments [5]. - The passive buying and selling driven by ETF mechanisms can lead to substantial market volatility, as seen with other indices experiencing similar adjustments [5][6]. - Analysts suggest that as ETF holdings increase, the short-term price fluctuations resulting from index adjustments may intensify, creating a non-diversifiable risk for investors [6].

Core Viewpoint - The recent volatility in the Hong Kong innovative drug sector, particularly the extreme price fluctuations of Yaojie Ankang-B (2617.HK), has raised questions about the rationale behind its inclusion in major indices despite lacking revenue and being newly listed [3][10]. Group 1: Stock Performance and Market Reaction - Yaojie Ankang experienced a dramatic stock price increase of over 550% within six days, reaching a market capitalization of HKD 164.7 billion, entering the "billion-dollar club" [7][8]. - On September 16, the stock saw a "bungee jump" pattern, soaring over 63% before closing down 5.73%, with a total intraday fluctuation of nearly 124% [6][7]. - Following this volatility, several innovative drug ETFs, including the Silver Hua National Innovation Drug ETF, fell by 2.98%, leading the decline in cross-border ETFs [5][6]. Group 2: Inclusion in Indices and Controversy - The inclusion of Yaojie Ankang in the National Innovation Drug Index raised concerns, as the company had been listed for less than three months and reported no revenue, with a pre-tax loss of HKD 123 million for the first half of the year [10][11]. - The index's criteria for inclusion require companies to have no significant violations or financial issues, which Yaojie Ankang did not meet due to its lack of operational history and ongoing product development [10][11]. - The rapid inclusion of new stocks in indices has sparked debate, particularly regarding the impact on passive investment products that must track these indices, leading to significant volatility in their net asset values [12][13].

Core Viewpoint - The recent volatility in the Hong Kong innovative drug sector, particularly the dramatic price fluctuations of药捷安康, has sparked widespread debate regarding the legitimacy of its rapid inclusion in major indices despite lacking financial performance support [1][7]. Group 1: Stock Performance and Market Reaction -药捷安康's stock price surged over 550% within six days, reaching a market capitalization of 164.7 billion HKD, entering the "billion-dollar club" [4][5]. - On September 16, the stock experienced extreme volatility, with a price increase of over 63% in the morning, followed by a drop of 5.73% by the end of the day, resulting in a total intraday fluctuation of nearly 124% [3][4]. - Following the stock's volatility, several innovative drug ETFs saw significant declines, with the银华国证港股通创新药ETF dropping 2.98% and other related ETFs also experiencing declines exceeding 1% [3][4]. Group 2: Inclusion in Indices and Controversy - The core controversy revolves around the inclusion of药捷安康 in the国证港股通创新药指数, despite the company being listed for less than three months and having no revenue, with a reported pre-tax loss of 123 million HKD for the first half of the year [7][8]. - The index's criteria for inclusion require companies to have no significant violations or financial issues, raising questions about the appropriateness of药捷安康's inclusion given its lack of operational history and financial performance [7][8]. - The rapid inclusion of新股 in indices has led to concerns about the impact on passive investment products, as these products must track indices and thus are subject to the volatility of newly included stocks [9]. Group 3: Trading Volume and Investor Behavior - The trading volume of药捷安康 surged dramatically, with daily trading volume increasing from 0.13 million HKD to 45.43 billion HKD, indicating a significant influx of capital [5][6]. - Southbound capital has been a crucial support factor, with continuous accumulation of药捷安康 shares, reaching a holding value of 789 million HKD by September 16 [6]. - The market's speculative behavior surrounding药捷安康 reflects broader trends in the innovative drug sector, where high volatility is characteristic, particularly for newly listed companies [9].

Core Viewpoint - The stock of Yaojie Ankang (02617.HK) experienced significant volatility, closing at 192 HKD with a decline of 53.73%, after reaching a peak of 679.5 HKD, which represented an increase of 63.73% during the trading session [1] Company Overview - Yaojie Ankang is a biopharmaceutical company focused on discovering and developing innovative small molecule therapies for oncology, inflammation, and cardiovascular metabolic diseases, currently in the clinical registration phase [1] IPO Details - Yaojie Ankang was listed on the Hong Kong Stock Exchange on June 23, 2025, with a total of 15,281,000 H-shares offered. The final number of shares for public offering in Hong Kong was 3,057,000 H-shares, while the international offering accounted for 12,224,000 H-shares [1] - The final offering price was set at 13.15 HKD per share, raising a total of 200.95 million HKD. After deducting the estimated listing fees of 39.61 million HKD, the net proceeds amounted to 161.34 million HKD [1]