Market Overview - The market experienced a downward trend throughout the day, with all three major indices declining. The pharmaceutical sector showed resilience with an increase, while the software sector was active. Conversely, computing hardware and chip-related stocks faced collective declines [1]. ETF Performance - The Sci-Tech Innovation Drug ETF surged over 7%, indicating strong investor interest in the pharmaceutical innovation sector [1]. - Specific ETFs and their performance include: - Huatai-PineBridge Sci-Tech Innovation Drug ETF: 0.922, up 7.71% [2] - Guotai Junan Sci-Tech Innovation Drug ETF: 0.989, up 7.27% [2] - Hong Kong Stock Connect Innovation Drug ETF: 1.756, up 5.78% [2] - Other ETFs in the innovation drug category also showed positive performance, with increases ranging from 5.1% to 5.78% [2]. Industry Insights - Analysts suggest that China's innovative drug industry is integrating robustly into the global pharmaceutical innovation system. Over the past decade, the industry has shifted from a focus on generic drugs to a significant increase in business development (BD) transactions in global innovative drugs. This transition reflects a move from "following" and "keeping pace" to "leading" in certain areas, supported by policy, clinical breakthroughs, and capital [2].

Market Overview - The three major A-share indices experienced a collective decline in the morning session, with the Shanghai Composite Index down by 0.66%, the Shenzhen Component Index down by 0.87%, and the ChiNext Index down by 1.1% [1] - The North Stock 50 Index fell by 1.75% [1] - The total trading volume in the Shanghai and Shenzhen markets reached 10,580 billion yuan, a decrease of 290 billion yuan compared to the previous day [1] - Over 3,800 stocks in the market saw declines [1] Sector Performance - Sectors that performed well included Shenzhen state-owned enterprise reform, coal mining and processing, film and television, port shipping, energy metals, and tourism and hotels [1] - Sectors that faced significant declines included engineering machinery, cultivated diamonds, CPO, precious metals, and semiconductors [1] ETF Performance - The dividend sector led the gains, with the Guotai Fund Coal ETF and Guotai Fund Dividend State-Owned Enterprise ETF rising by 2.88% and 1.1%, respectively [1] - Soybean futures strengthened, leading to a 1.4% increase in the Huaxia Fund Soybean Meal ETF [1] - Oil prices rebounded, with the Huatai Fund Energy ETF and Huaxia Fund Petrochemical ETF both increasing by 1% [1] - The electricity sector saw gains, with the Huaxia Fund Green Electricity ETF and the E Fund Green Electricity ETF rising by 1.24% and 1.06%, respectively [1] Hong Kong Market - The innovative drug sector in the Hong Kong market experienced a widespread decline, with the Hang Seng Innovative Drug ETF and the Kexin Innovative Drug ETF falling by 3.65% and 3.54%, respectively [1] - The AI computing power sector also declined, with the communication equipment ETF and communication ETF both dropping by over 3% [1]

Core Insights - The innovation drug sector presents significant opportunities but is fraught with substantial risks, often described as "dancing with golden handcuffs" [2] - The A-share and Hong Kong innovation drug sectors have shown volatility, initially rising against a backdrop of market downturns but later lagging behind technology sectors [2] Group 1: Risks in Innovation Drug Development - The development of innovative drugs is characterized by high investment, typically requiring "ten years and ten billion dollars," with a high likelihood of failure at various stages [4] - R&D risks are paramount, as drugs must navigate multiple phases from target discovery to clinical trials, with potential failures at any stage leading to significant financial losses [6] - Financial and time risks are critical, as the lengthy development cycle necessitates continuous funding, which can be particularly challenging for small to mid-sized companies in a tightening financing environment [8] - Commercialization risks arise even after successful drug development, as market access and pricing negotiations with healthcare systems can significantly impact profitability [10] Group 2: Strategies for Risk Mitigation - Companies are diversifying their pipelines across various therapeutic areas and molecular targets to mitigate risks associated with individual drug failures [10] - Chinese pharmaceutical companies are increasingly engaging in overseas collaborations and licensing agreements to secure upfront payments and share development costs, creating a sustainable cycle of funding and innovation [12] Group 3: Investment Strategies for Ordinary Investors - Ordinary investors are advised to consider ETFs over individual stocks due to the high volatility associated with single drug candidates, which can lead to significant losses [14] - Two types of ETFs are recommended: broad-based medical ETFs that include various healthcare sectors and innovation drug-themed ETFs focusing on high-growth companies in niche markets [16][17] Group 4: Market Outlook - The recent short-term pullback in the innovation drug sector is viewed as a normal valuation adjustment, with long-term growth prospects remaining strong as long as R&D quality and commercialization pathways are maintained [19] - Investors are encouraged to adopt a long-term perspective, utilizing market corrections to gradually build positions in innovation drug ETFs to benefit from the industry's growth potential [21]

Group 1: ETF Market Overview - As of September 12, 2025, there are 1,292 ETFs in the Shanghai and Shenzhen markets, with a total asset management scale of 52,387.73 billion [2] - The breakdown of ETFs includes 1,029 stock ETFs (35,315.17 billion), 39 bond ETFs (5,718.88 billion), 27 money market ETFs (1,564.76 billion), 17 commodity ETFs (1,611.53 billion), 173 cross-border ETFs (8,120.58 billion), and 6 unlisted ETFs (52.32 billion) [2] - In the week from September 8 to September 12, 2025, four new stock ETFs were launched, including two fintech-themed ETFs, with a total issuance scale of 5.682 billion [3][4] Group 2: ETF Performance Analysis - The median weekly return for stock ETFs was 1.97%, with the best-performing ETF being the China United Asset Management's Sci-Tech Chip Design ETF, which rose by 10.14% [3][4] - Conversely, the worst performer was the Guotai Junan Sci-Tech Innovation Drug ETF, which fell by 3.12% [4] - The average share change for stock ETFs was an increase of 6.6576 million shares, with the chemical ETF seeing the largest increase of 2.968 billion shares [4] Group 3: PB-ROE Framework and ETF Rotation Strategy - The PB-ROE framework categorizes industries into six quadrants, focusing on high PB and high ROE industries in the third quadrant and low PB and medium ROE industries in the fifth quadrant [5] - Backtesting from 2017 to February 2024 shows that only the third and fifth quadrants achieved excess returns, with annualized excess returns of 4.27% and 1.55%, respectively [5] - The combined PB-ROE rotation strategy yielded an annualized return of 11.93% and an annualized excess return of 13.22% [6] Group 4: Investment Recommendations - The report recommends focusing on the automotive, transportation, and public utilities sectors, corresponding to their respective industry ETFs [8]

统筹推进制度、技术、投资端建设方面，霍瑞戎介绍，制度技术依次就绪，目前各项配套制度规则已全 部发布实施，存量32家未盈利企业已于规则发布当日纳入科创成长层，技术系统改造正加快推进，将如 期上线。全面加强投保服务，政策发布后，会员单位有序组织投资者签署参与科创成长层交易的风险揭 示书，加强投资者适当性管理，目前已有475万户投资者开通科创成长层交易权限。市场活水持续涌 入，政策发布后，上交所推动科创创新药ETF等13只ETF上市，截至9月11日，科创板ETF共97只，规模 合计约2800亿元，科创板目前已成为A股指数化投资比例最高的板块，指数化产品在吸引资金向新质生 产力积聚、引导中长期资金入市等方面发挥了重要作用。 随着一系列制度改革陆续落地，上市公司高质量发展的生态环境不断优化，上市公司积极拥抱新技术， 发展新质生产力。 霍瑞戎表示，新兴产业以科技创新为引领，积蓄增长力量。依托科创板，上交所逐步培育起一批具 有"硬科技"底色的产业体系，六大战略性新兴产业初具规模，人工智能、量子信息等未来产业加速布 局。沪市企业持续加码研发投入，今年上半年，实体企业研发投入达4326亿元，再创新高，其中科创板 公司研发投入8 ...

Group 1 - The Shanghai Stock Exchange (SSE) is actively promoting the implementation of the "1+6" reform policy for the Sci-Tech Innovation Board, enhancing policy communication and guiding high-quality development of listed companies [1] - Since June, SSE has conducted promotional activities in key cities, engaging over 1,000 enterprises and market institutions, with more than 2,000 participants [1] - The SSE has received 15 IPO applications under the fifth set of listing standards, including 4 from unprofitable companies, indicating a supportive environment for innovative firms [1] Group 2 - SSE has initiated pre-communication with several commercial aerospace, artificial intelligence, and low-altitude economy companies to expand the fifth set of standards to relevant industries [2] - The SSE has launched a system for professional institutional investors, with 475,000 investors now authorized to trade in the Sci-Tech Innovation Board's growth tier [2] - The total scale of Sci-Tech Innovation Board ETFs has reached approximately 280 billion yuan, making it the highest proportion of index investment in A-shares [2] Group 3 - The SSE is fostering a "hard technology" industrial system, with significant R&D investments from listed companies, totaling 432.6 billion yuan in the first half of the year [3] - Traditional industries are transforming and upgrading, with notable profit growth in sectors like steel and machinery, achieving year-on-year net profit increases of 235% and 21% respectively [3] - The SSE aims to enhance market attractiveness and inclusivity while better serving technological innovation and new productive forces through comprehensive capital market reforms [3]

Group 1 - The Shanghai Stock Exchange (SSE) is actively promoting the implementation of policies such as the "1+6" reform policy for the Sci-Tech Innovation Board, aimed at enhancing the high-quality development of listed companies [1] - Since the introduction of the fifth set of listing standards, the SSE has received IPO applications from 15 new companies, including 4 unprofitable enterprises, indicating a growing acceptance of diverse business models [1][2] - The SSE has organized outreach activities covering over 1,000 enterprises and market institutions, with more than 2,000 participants, to promote the policies supporting technological innovation [1] Group 2 - The SSE has initiated pre-communication with various commercial aerospace, artificial intelligence, and low-altitude economy companies to expand the fifth set of standards to relevant industries [2] - As of September 11, the total scale of Sci-Tech Innovation Board ETFs reached approximately 280 billion, making it the highest proportion of index investment in A-shares [2] - The R&D investment of entities in the Shanghai market reached a record high of 432.6 billion in the first half of the year, with Sci-Tech Innovation Board companies investing 84.1 billion, which is 2.8 times their net profit [3] Group 3 - Traditional industries in the Shanghai market are actively exploring new technologies for transformation and upgrading, with significant profit growth observed in sectors like steel and machinery [3] - The SSE aims to deepen comprehensive reforms in investment and financing, enhancing market attractiveness and inclusivity to better serve technological innovation and new productive forces [3]

三是统筹推进制度、技术、投资端建设等相关工作。霍瑞戎提到，制度技术依次就绪，目前各项配套制 度规则已全部发布实施，存量32家未盈利企业已于规则发布当日纳入科创成长层，技术系统改造正加快 推进，将如期上线。全面加强投保服务，政策发布后，会员单位有序组织投资者签署参与科创成长层交 易的风险揭示书，加强投资者适当性管理，目前已有475万户投资者开通科创成长层交易权限。 本报讯(记者毛艺融)9月16日，上海证券交易所副理事长霍瑞戎在2025中国资本市场发展论坛上发表致 辞时表示，在中国证监会的领导下，上交所持续推进"科创板八条""并购六条"等政策落地见效，今年6 月份以来进一步围绕科创板"1+6"改革政策，全面加强政策宣贯，积极推动典型案例落地，系统性引导 上市公司高质量发展。 霍瑞戎介绍了交易所改革落地的相关工作。一是全方位多角度加强解读，充分彰显资本市场支持科技创 新的政策导向。霍瑞戎表示，政策宣介覆盖全国多地，持续在重点城市开展宣介活动，覆盖企业、市场 机构等1000余家，累计超2000人参会。市场交流深入开展，面向保荐机构、事务所等开展系列培训和座 谈，覆盖机构约200家。国际市场联动宣介，举办科创板六周年线 ...

霍瑞戎履新上交所副理事长后，首次公开发声！ 9月16日，上交所副理事长霍瑞戎在"2025中国资本市场发展论坛暨上市公司论坛"上透露，上交所已与 多家商业航天、人工智能、低空经济企业开展预沟通，推动第五套标准扩围至相关行业领域。加强投资 者适当性管理方面，目前已有475万户投资者开通科创成长层交易权限。 霍瑞戎表示，上交所持续推进"科创板八条""并购六条"等政策落地见效，今年6月以来进一步围绕科创 板"1+6"改革政策，全面加强政策宣贯，积极推动典型案例落地，系统性引导上市公司高质量发展。 据介绍，科创板"1+6"改革政策发布以来，科创板新增受理15家企业IPO申请，其中4家系未盈利企业； 在适用第五套标准方面，1家企业获受理，2家前期已申报企业获注册生效；政策发布至今已有3家未盈 利企业注册生效，为首批新注册科创成长层企业上市奠定了基础。资深专业机构投资者制度启动试水， 新受理企业泰诺麦博披露了资深专业机构投资者相关信息。预先审阅有序推进，已与多家意向企业开展 预沟通，积极推动首家项目提请预先审阅。 霍瑞戎表示，上交所还统筹推进制度、技术、投资端建设等相关工作。制度技术依次就绪，目前各项配 套制度规则已全部发 ...

Market Performance - On September 5, the Shanghai Composite Index rose by 1.24% to 3812.51 points, while the Shenzhen Component Index increased by 3.89% [1] - The ChiNext Index saw a significant rise of 6.55%, and the CSI 300 Index increased by 2.18% [1] - A-share trading volume was 2.35 trillion yuan, down from 2.58 trillion yuan the previous day [1] Industry Developments - On September 5, 2025, Hengrui Medicine announced an exclusive licensing agreement with Braveheart Bio for its Myosin small molecule inhibitor HRS-1893, indicating ongoing innovation in China's outbound drug licensing [3] - Wobo Pharmaceutical announced a collaboration with Novartis for its cardiovascular small nucleic acid pipeline, reflecting international recognition of Chinese small nucleic acid drugs [3] - The overall pharmaceutical sector showed marginal improvement in mid-year performance, with revenue and net profit growth rates of 6.9% and 56.1%, respectively, and a gross margin increase to 77.7% [3] Future Outlook - The upcoming industry conferences in September and October are expected to reveal multiple clinical data points, which could act as catalysts for the sector [4] - The World Lung Cancer Conference (WCLC) will take place from September 6-9, featuring 35 presentations from Chinese scholars, highlighting the anticipation for clinical data from domestic new drugs [4] - The innovation drug sector is expected to continue benefiting from favorable policies, including the acceleration of commercial health insurance directory progress and improved liquidity conditions [4][5] Investment Opportunities - The innovation drug sector's growth logic is supported by internationalization efforts such as BD and license-out agreements [5] - The upcoming third-quarter reports for innovation drugs and their supply chain companies are anticipated to provide stronger valuation support [6] - Key catalysts for the second half of the year include policy support, upcoming data releases from major international conferences, and accelerated commercialization of Chinese innovative drugs [7] ETFs and Indices - The Innovation Drug ETF (517110) tracks the innovation drug industry index, covering various segments of drug development, production, and commercialization, which may help mitigate risks associated with single technology failures [8] - The Sci-Tech Innovation Drug ETF (589723) focuses on biotech and has shown stronger rebound performance compared to the broader market, indicating potential for better returns in a favorable market environment [8]