Support policies for the high-quality development of innovative drugs continue to be implemented, and the Hong Kong A sector for innovative drugs has erupted again.

On July 3, according to Gelonghui, the Hong Kong and A-share innovative drug sector has once again exploded, with AKESO, YASHENG PHARMACEUTICAL, and INNOVENT BIO rising by 10.99%, 8.83%, and 6.49% respectively. On July 1, the National Healthcare Security Administration and the National Health and Family Planning Commission issued "Several Measures to Support the High-Quality Development of Innovative Drugs," proposing 16 measures in five areas, including strengthening support for innovative drug research and development, supporting innovative drugs to enter the medical insurance catalog and commercial health insurance innovative drug catalog, encouraging clinical applications of innovative drugs, improving the multi-payment capabilities for innovative drugs, and strengthening organizational guarantees. The continuous implementation of policies supporting the development of innovative drugs across the entire industry chain is a long-term Bullish policy for the innovative drug sector. The overall increase in the innovative drug sector exceeded 50% in the first half of the year, and the significant increase has raised the market's attention to this sector. For instance, after a correction of more than 10% since June 13, the Hang Seng Biotechnology Index rebounded immediately, and after realizing profits from yesterday's significant policy rollout, it rebounded again today. From a valuation perspective, the latest PE (TTM) of the Hang Seng Biotechnology Index is 27.44 times, positioned at the 9.09% historical percentile for the past decade. Institutions generally believe that the domestic innovative drug industry is expected to reach an inflection point in 2025, with the industry running trend shifting from capital-driven to profit-driven, and the sector is expected to see dual investment opportunities for performance and valuation repairs. Notable products, and the rise and fall as of the time of publication: Hang Seng Medical ETF (159892), representing the global pharmaceutical industry chain, has risen by 2.47% as of the time of publication, accumulating a rise of over 54% since the beginning of the year, tracking the Hang Seng Biotechnology Index, with the top ten constituent stocks including INNOVENT BIO, WUXI BIO, BEIGENE, AKESO, and other pharmaceutical leaders. The Star Medical ETF Fund (588130), representing biotechnology on the Star board, has risen by 1.69% as of the time of publication, covering fields such as innovative drugs and innovative devices, with the top ten constituent stocks including United Imaging Healthcare, BEIGENE, BGI GENOMICS, JUNSHI BIO, and other sub-sector leaders.