The Stock Connect Innovative Drug ETF E Fund (159316) received net subscriptions of 56 million shares during trading hours, "absorbing" over 37 million in a single day.

As of 11:14, the Hang Seng Stock Connect Innovative Drug Index (HSSCID) fell by 0.3%. Among the top ten weighted stocks, Innovent Biologics dropped 0.22%, BeiGene dropped 2.19%, CSPC Pharmaceutical Group dropped 0.24%, Akeso rose 4.35%, China National Pharmaceutical Group dropped 2.06%, Hansoh Pharmaceutical dropped 0.67%, Sinopharm Group rose 2.49%, Kelun-Biotech rose 0.1%, and Zai Lab dropped 0.74%.

The Hang Seng Stock Connect Innovative Drug ETF E Fund (159316) continues to attract capital inflows, with a net inflow of 37.28 million yuan in the previous trading day. As of the previous trading day, the fund has seen consecutive net capital inflows for 5 days, totaling over 390 million yuan. Over the past 20 days, it has attracted over 1.6 billion yuan, and over the past 60 days, over 2 billion yuan. The fund's average daily turnover in the last month was 1.504 billion yuan, ranking first among peers, with active on-exchange trading and strong liquidity. As of press time, the fund received a net subscription of 56 million shares during trading hours.

In terms of news, this week, CSPC Pharmaceutical Group reached a cooperation agreement with AstraZeneca for siRNA drug development, with an upfront payment of $30 million and potential milestones up to $1.74 billion. China National Pharmaceutical Group reached an overseas licensing deal with AstraZeneca for a PDE3/4 inhibitor, with an upfront payment of $200 million and potential milestones up to $1.9 billion. In the first half of this year, the total value of outbound licensing deals for Chinese innovative drugs was approximately $95.3 billion, close to 70% of the full-year total last year. This figure is quite impressive on a global scale.

Zhongtai Securities believes that the current fundamentals of the pharmaceutical sector (5 years of adjustment, stock price valuation at a relative bottom, and gradual improvement in policy and fundamentals) are at a historical low. Short-term corrections do not change the long-term upward trend. From a fundamental perspective, innovative drugs and their industrial chain remain the sub-sectors with the clearest industrial trends and future growth potential within the current pharmaceutical sector, and we recommend continuing to actively embrace them.

The management fee rate for the Hang Seng Stock Connect Innovative Drug ETF E Fund (159316) is 0.15%, the custody fee rate is 0.05%, and the comprehensive fee rate is 0.2%. The lower fee rates can effectively reduce cost expenditures for investors.

The Hang Seng Stock Connect Innovative Drug ETF E Fund (159316) is currently the only ETF product tracking the Hang Seng Innovative Drug Index in the market, possessing high elasticity and scarcity, helping investors better seize the investment opportunities in Hong Kong Stock Connect innovative drugs in this round.