Group 1 - The article announces the exclusive launch of the only "Pharmaceutical ETF" in the market, which includes leading companies in chemical drugs, biological drugs, and traditional Chinese medicine, starting from August 8 [1][3] - The pharmaceutical industry is characterized by its strong demand attributes, driven by a large population base, accelerated aging, and rising GDP per capita, indicating a long-term high prosperity in the sector [3][4] - By 2024, the proportion of the population aged 65 and above in China is expected to reach 15.6%, marking the entry into a moderately aging society, which will further expand the pharmaceutical market space [4] Group 2 - The innovative drugs are seen as a typical representative of new productive forces, expected to drive the revaluation of medical assets and open up growth ceilings for the pharmaceutical industry [4] - The domestic innovative drug market is predicted to experience significant growth, with the potential for a "Davis Double Hit" in 2024 due to multiple internal and external catalysts [4] - The pharmaceutical index has shown a significantly smaller decline compared to similar indices over the past five years, with positive returns in the last three years [14][15] Group 3 - The pharmaceutical index includes leading listed companies in the three major pharmaceutical sectors: chemical drugs, biological drugs, and traditional Chinese medicine, reflecting the overall performance of pharmaceutical theme stocks [7][11] - The top ten constituent stocks of the pharmaceutical index include major companies such as Heng Rui Pharmaceutical, with a market capitalization of 374.3 billion yuan, and Yunnan Baiyao, with a market capitalization of 100.9 billion yuan [12][13] - The current point of the pharmaceutical index is still at the level before the last major market rally, indicating a high cost-performance ratio for investment [16]

Core Viewpoint - The launch of China's first pharmaceutical ETF fund aims to provide investors with exposure to leading companies in the chemical, biological, and traditional Chinese medicine sectors, capitalizing on the growth potential driven by innovation and demographic trends [1][5]. Industry Overview - The pharmaceutical industry is characterized by its essential nature, driven by a large population, aging demographics, and increasing GDP per capita, which supports long-term growth [5]. - By 2024, the proportion of the population aged 65 and above in China is expected to reach 15.6%, indicating a shift into a moderately aging society, which will further expand the pharmaceutical market [5]. Innovation and Growth - Innovative drugs are seen as a key driver for the pharmaceutical industry's growth, with the potential to unlock new value and re-evaluate medical asset worth [5]. - Domestic innovative drugs are anticipated to experience significant growth in 2024, supported by various internal and external factors, potentially leading to a "Davis Double Play" scenario [5]. - The integration of AI in drug development is expected to accelerate the research and development of new medications [5]. ETF Fund Details - The newly launched ETF fund (A class: 024985 / C class: 024986) will exclusively track the CSI Pharmaceutical Index, which includes leading companies in the chemical, biological, and traditional Chinese medicine sectors [1][19]. - The fund aims to provide a balanced investment approach, combining high-growth innovative drugs with more stable traditional Chinese medicine to mitigate volatility [1][19]. Performance Metrics - The pharmaceutical index has shown a significantly smaller decline compared to similar indices over the past five years, with positive returns over the last three years [14]. - The index's long-term annualized volatility and maximum drawdown are notably lower than those of comparable indices, indicating a more stable investment profile [14]. Key Constituents - The top ten constituents of the pharmaceutical index include major companies such as Heng Rui Medicine (14.91% weight), Pian Zai Ye (5.83%), and Yunnan Baiyao (4.81%), reflecting a diverse representation across the pharmaceutical sectors [13].