Donghai Securities pointed out that the pharmaceutical and biotechnology sector has recently led the gains. The innovative drug sector remains active, with licensing collaborations expanding from oncology to respiratory, metabolic, and immunology fields, including multiple GLP-1 drug licensing deals. Currently, the PE ratio of the pharmaceutical and biotechnology sector is 30.88x, at a historical median level, while the chemical pharmaceuticals sub-sector has a PE ratio of 36.12x. The global competitiveness of domestic innovative drugs continues to improve, making them a core investment theme for the second half of the year.

The Guotai SSE STAR Market Innovation Pharma ETF (589720) tracks the STAR Market Innovation Pharma Index (950161), which can fluctuate up to 20% in a single day. The index selects listed securities from the STAR Market involved in drug development and biopharmaceuticals as sample components to reflect the overall performance of companies engaged in innovative drug R&D. The STAR Market Innovation Pharma Index focuses on cutting-edge areas of China’s innovative drug industry, fully showcasing its high-tech attributes and growth potential.

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