Investment Rating - The report maintains a "Buy" rating for the pharmaceutical and biotechnology industry, specifically recommending an increase in holdings for companies like Chengyitong and Sanbo Brain Science [1]. Core Insights - The report highlights the significant support from policies and technological breakthroughs in the brain-computer interface (BCI) industry, indicating a promising development trajectory. It suggests that the BCI industry is entering a golden development period, with applications in neural rehabilitation and motor function reconstruction expected to be among the first to commercialize [4][29]. - The report notes that the A-share pharmaceutical index has seen a year-to-date increase of 27.3%, although it underperformed compared to the CSI 300 index [4]. - The report emphasizes the importance of the BCI technology as a strategic high ground in global technological competition, with substantial investments from the U.S. government exceeding $4 billion from 2014 to 2023 [22][26]. Summary by Sections Industry Trends - The A-share pharmaceutical index has increased by 2.8% this week and 27.3% year-to-date, while the Hang Seng Biotechnology Index has risen by 11.3% this week and 108.1% year-to-date [4][9]. - The report identifies strong performance in chemical drugs (+6.0%), biological products (+2.7%), and medical services (+5.6%), while traditional Chinese medicine and medical devices have seen declines [4]. Policy Support and Technological Breakthroughs - The report discusses the clear policy support for the BCI industry, with the Ministry of Industry and Information Technology and other departments releasing the "Brain-Computer Interface Industry Innovation Development Action Plan (2025-2028)" [26][29]. - It highlights that China has successfully conducted its first invasive BCI clinical trial, marking a significant milestone in the industry [29]. R&D Progress and Company Dynamics - The report details various companies' advancements, including the acceptance of clinical applications for new drugs by Maiwei Biotech and Hansoh Pharmaceutical [4][29]. - It recommends focusing on companies involved in BCI technology, such as Chengyitong, Sanbo Brain Science, and Xiangyu Medical [4][29]. Market Performance - The report provides a detailed overview of stock performance, noting significant gains for companies like Puris (+35.61%) and Haichen Pharmaceutical (+33.04%) this week [4][9]. - It also highlights the strong performance of large-cap pharmaceutical stocks compared to smaller-cap stocks [4].