Core Viewpoint - The performance of the Sci-Tech Innovation Pharmaceutical Index ETF has shown significant growth in both trading volume and scale, indicating strong investor interest and confidence in the sector [3][5][6]. Liquidity - The Sci-Tech Innovation Pharmaceutical Index ETF had an intraday turnover of 9.12%, with a transaction volume of 20.17 million yuan. Over the past week, the average daily transaction volume reached 50.98 million yuan, ranking first among comparable funds [3]. Scale - In the past year, the Sci-Tech Innovation Pharmaceutical Index ETF's scale increased by 143 million yuan, achieving notable growth and ranking first among comparable funds [3]. Shares - The ETF's shares grew by 120 million in the past year, also ranking first among comparable funds [3]. Top Holdings - As of May 30, 2025, the top ten weighted stocks in the Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index accounted for 51.6% of the total weight. The leading stocks include: - United Imaging Healthcare (8.97%) - BeiGene (7.05%) - Huaitai Medical (5.85%) - Aierx (4.91%) - Baillie Tianheng (4.77%) - Zai Lab (4.75%) - BGI Genomics (4.17%) - Junshi Biosciences (4.15%) - Aibo Medical (3.33%) - Teva Biopharma (3.25%) [5]. Market Response - Following the American Society of Clinical Oncology (ASCO) annual meeting, there has been a positive market response, highlighting the competitiveness and innovation of Chinese pharmaceutical companies in new drug development [5][6]. Innovation Pipeline - The proportion of domestic companies' innovative drug data presented at ASCO has been increasing, with 73 studies selected for oral presentations in 2025, indicating a strong focus on innovation within the industry [6]. Investment Opportunities - Investors without stock accounts can access opportunities in the Sci-Tech Innovation Board biopharmaceutical sector through the Sci-Tech Biopharmaceutical ETF linked fund (021061) [6].

Group 1 - The A-share market showed mixed performance on June 10, with the Sci-Tech Innovation Pharmaceutical Index ETF (588700) declining by 0.38% and a trading volume exceeding 30 million yuan [1] - The Sci-Tech Innovation Pharmaceutical Index ETF closely tracks the Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index, which includes 50 large-cap companies in biopharmaceuticals, biomedical engineering, and related sectors [1] - The Chinese government has issued guidelines to improve basic medical insurance and commercial health insurance, aiming to better meet the multi-level medication needs of the public [1] Group 2 - The innovative drug sector has experienced rapid growth in product revenue and external licensing over the past three years, with significant business development (BD) transactions occurring this year [2] - There is a trend of the innovative drug market expanding to the overall sector, with a focus on companies with large product volumes and BD expectations [2]

Market Overview - The market experienced a rebound on May 29, with the Shanghai Composite Index rising by 0.7%, the Shenzhen Component Index increasing by 1.24%, and the ChiNext Index gaining 1.37% [1] - Over 4,400 stocks in the market rose, with more than a hundred stocks hitting the daily limit up [1] - The total trading volume in the Shanghai and Shenzhen markets reached 1.19 trillion yuan, an increase of 175.5 billion yuan compared to the previous trading day [1] Sector Performance - Leading sectors included unmanned vehicles, digital currency, software development, and innovative pharmaceuticals, while sectors such as gold, glyphosate, food, and banking saw declines [1] - The top-performing sectors experienced significant gains after a prolonged period of adjustment, indicating a recovery trend [8] Individual Stock Performance - The median increase for all stocks in the market was 1.35%, suggesting that stocks outperforming this benchmark may have more potential for sustained growth [14] - Notable sectors with recent activity included innovative pharmaceuticals, nuclear power, and unmanned vehicles, alongside emerging themes like cross-border payments and digital currency [15][16] Policy and Economic Context - The Chinese government has introduced measures to enhance cross-border financial services, which may benefit sectors related to digital currency and cross-border payments [16] - The Chairman of the China Securities Regulatory Commission emphasized the importance of market stability for economic and social stability, highlighting the government's commitment to maintaining a stable capital market [19][20][21]

Group 1 - The A-share market saw a positive trend with the Shanghai Stock Exchange Science and Technology Innovation Board Biopharmaceutical Index rising by 1.95% as of the report time [1] - The Science and Technology Innovation Medicine Index ETF (588700) increased by 2.18%, with a turnover rate of 8.76% and a transaction volume exceeding 23.75 million [1] - Among the constituent stocks, Yifang Biotechnology-U surged over 12%, Borui Pharmaceutical rose over 8%, and Microchip Biotech increased over 7% [1] Group 2 - According to Industrial Securities, the innovative drug sector's prosperity is expected to be sustainable, with "innovation + internationalization" remaining the core direction of the pharmaceutical sector [2] - The report highlights that the innovative drug industry chain's fundamentals are beginning to improve, with overseas orders and performance starting to recover [2] - The demand in the domestic market is anticipated to rebound by 2025, with potential recovery in the consumption medical field, including medical services and OTC traditional Chinese medicine [2]

Core Viewpoint - The increasing variety of ETF products has created a challenge for investors in selecting suitable options based on their investment needs, prompting public fund institutions to explore ETF-FOF products as a solution [1][2]. Group 1: ETF-FOF Product Development - Multiple public fund institutions, including China Europe Fund and Ping An Fund, have reported ETF-FOF products this year, aiming to enhance investment efficiency and reduce fees [2][3]. - The ETF-FOF products are designed to invest at least 80% of their assets in other public funds, with a significant portion allocated to ETFs, thus optimizing asset allocation and enhancing returns [2][4]. Group 2: Advantages of ETF-FOF Products - ETF-FOF products offer higher capital efficiency, lower total fees, and T+1 valuation disclosure, addressing issues faced by traditional FOF products such as delayed valuation and double fees [3][4]. - The current market conditions, including low overall equity market valuations and rapid expansion of domestic ETF products, present a potential growth window for ETF-FOF products [4][5]. Group 3: Challenges and Requirements - The execution of ETF-FOF strategies faces challenges in effective strategic and tactical asset allocation, as well as selecting appropriate ETFs from a vast array of options [5][6]. - Successful implementation requires a combination of quantitative and qualitative analysis, necessitating strong macroeconomic research and market analysis capabilities within the investment teams [6].

Group 1 - The core viewpoint is that the pharmaceutical sector is focusing on innovation, with a positive trend in innovative drugs supported by policies and increasing global competitiveness [2] - The Shanghai Stock Exchange Science and Technology Innovation Board Biomedicine Index has shown a 1.27% increase, indicating a recovery in the biotech sector [1] - The ETF tracking the Biomedicine Index has seen a 1.17% rise, with significant trading volume exceeding 8.12 million yuan, reflecting investor interest [1] Group 2 - The pharmaceutical industry is expected to see a recovery in demand by 2025, particularly in the consumer healthcare sector, driven by improving economic fundamentals [2] - The medical device sector is also anticipated to improve by 2025, indicating a broader recovery in the healthcare industry [2] - AI in healthcare is highlighted as a significant technological trend that could bring changes to the pharmaceutical industry [2] Group 3 - The pharmaceutical index has stabilized after a period of decline since 2021, with signs of recovery beginning in Q4 2024 [2] - The ongoing innovation in the pharmaceutical sector, along with favorable drug procurement policies, is expected to drive a new growth cycle [2] - The aging population and unmet clinical needs are contributing to long-term growth trends in the pharmaceutical industry [2]