Core Viewpoint - The increasing variety of ETF products has created a challenge for investors in selecting suitable options based on their investment needs, prompting several public fund institutions to report ETF-FOF products to address this issue [1][5]. Group 1: ETF-FOF Product Advantages - ETF-FOF products are recognized for their higher capital efficiency, lower fee rates, and the ability to disclose valuations on a "T+1" basis, unlike traditional FOF products which face issues like delayed valuations and double fees [3][4]. - The ETF-FOF strategy requires public fund institutions to enhance their macroeconomic research, market analysis, and asset allocation capabilities, combining both quantitative and qualitative approaches for effective asset allocation [1][6][7]. Group 2: Recent Developments and Offerings - Several public fund institutions, including China Europe Fund and Ping An Fund, have reported ETF-FOF products this year, such as the China Europe Active Multi-Asset 3-Month Holding Mixed Fund and the Ping An Yingxuan 90-Day Holding Bond Fund [2][3]. - The China Europe Active Multi-Asset 3-Month Holding Mixed Fund has been approved and started sales on May 13, with over 80% of its assets allocated to other public funds, including ETFs [3]. Group 3: Market Context and Challenges - The expansion of ETF products has provided a fertile ground for the development of ETF-FOF strategies, although existing FOF products have struggled to grow in scale, often remaining below 200 million yuan due to market adjustments in recent years [4][5]. - The current low valuation of the equity market and the rapid expansion of domestic ETF products across various categories may present a window of opportunity for ETF-FOF strategies to offer diversified asset allocation and better investment experiences [5][6].

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]

Group 1 - The pharmaceutical sector has shown strong performance recently, with healthcare and pharmaceutical stocks gaining traction on the first trading day of June [1] - The Kexin Pharmaceutical Index ETF (588700) rose over 2% as of the report, with a turnover rate exceeding 6% and a premium trading rate of 0.12% [1] - Notable stocks within the ETF include Microchip Biotech, which increased by over 14%, and several others like Shenzhou Cell, Sangfor Biopharma, and Huaxi Biotech, which saw gains of over 8% [1] Group 2 - The Kexin Pharmaceutical Index ETF closely tracks the Shanghai Stock Exchange's Kexin Biopharmaceutical Index, which includes 50 large-cap companies in the biopharmaceutical and related sectors [1] - In May, the pharmaceutical sector performed strongly, with the Shenwan Pharmaceutical Biotech Index rising by 6.42%, second only to the environmental sector [1] - The approval of 11 new innovative drugs in the last week of May indicates a peak period for innovation drugs, suggesting a positive outlook for the sector [2] Group 3 - Guojin Securities highlighted that the recent approval of 11 new innovative drugs by the National Medical Products Administration could boost the performance of related companies [2] - The ongoing support for innovative drugs from policy measures, along with significant overseas licensing deals, is expected to sustain the sector's growth [2] - Huafu Securities recommends focusing on innovative drugs as a long-term investment strategy, particularly those with clear catalysts and strong performance trends [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 A-share market experienced a slight adjustment with the pharmaceutical sector showing low opening fluctuations, while the Kexin Pharmaceutical Index ETF (588700) saw a minor rebound, currently down 0.11% with premium trading observed [1] - The National Medical Products Administration (NMPA) is implementing comprehensive reforms in drug regulation to enhance drug safety and support high-quality development in the pharmaceutical industry, as stated by Xu Jinghe, Deputy Director of NMPA [1] - Huayuan Securities reported that innovative drug companies are projected to achieve revenues of 47.53 billion yuan in 2024, marking a year-on-year growth of 68.4%, indicating strong momentum in the sector [1] Group 2 - Guoyuan Securities highlighted that Chinese innovative drugs are considered the highest quality assets globally, with the industry benefiting from a decade of development since the 2015 drug research policy reform [2] - The integration of high-quality resources, including skilled engineers and clinical resources, has led to recognition of the results by multinational corporations (MNCs), which is expected to accelerate MNCs' efforts in innovative drug business development [2] - The outlook for Chinese innovative drugs in international markets is optimistic, with the potential for significant growth in overseas licensing opportunities [2]

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]

Core Viewpoint - The Science and Technology Innovation Board Index ETF (588700) has increased by over 3%, with a trading volume of 17.62 million yuan, representing an 81.24% increase compared to the same time yesterday, while the monthly trading volume has decreased by 47.5 million units [1] Group 1 - The ETF's trading volume has significantly increased, indicating heightened investor interest [1] - The current trading volume is 17.62 million yuan, which shows a substantial rise from the previous day [1] - The ETF allows investors to participate in the Science and Technology Innovation Board without needing a minimum investment of 500,000 yuan [1]