Focus: 2025 Fund Q3 Report: Growth in Equity Size, Technology Sector Remains "Core Position"

On October 22, Great Wall Pharmaceutical Industry Selected Mixed A released its Q3 fund report.

As of October 22, 2025, the fund's unit net value stood at 1.7983. Despite a -8.81% decline over the past month and a -14.29% drop over the last three months, it has achieved a cumulative return of 79.83% since its establishment on October 22, 2024, with a year-to-date increase of 88.34%.

From a performance perspective, Great Wall Pharmaceutical Industry Selected A exhibits a distinct divergence. The fund's return of 22.49% over the past six months and 79.83% over the past year positions it prominently among pharmaceutical-themed funds. However, recent adjustments are significant, with declines of -8.81% in the last month and -14.29% in the last three months, reflecting challenges faced by the pharmaceutical sector, particularly in the innovative drug field during Q3.

Examining Q3’s major holdings, the top ten stocks collectively valued at 1.313 billion CNY are highly concentrated in the innovative drug sector, revealing a different asset allocation logic compared to technology funds.

The top three holdings are Innovent Bio, 3SBIO, and Immunotech-B, indicating a strong bias towards biotechnology and innovative pharmaceutical companies.

Noteworthy is the fund manager's action of increasing positions in most major holdings in Q3, including a 63.56% increase in Immunotech-B, a 55.65% increase in Kanghong Pharmaceutical, a 34.81% increase in Innovent Bio, and a 28.01% increase in Immunotech-B.

In the Q3 report, Liang Furui elaborated on his investment strategy. He noted that the A/H market experienced multiple sectors rising together in Q3, primarily driven by technology and precious metals sectors, with daily trading volume in A-shares consistently above 2 trillion CNY, reflecting active trading sentiment in the capital market.

However, despite the good performance in the technology sector, “innovative drugs, viewed as advantageous tech assets in Q2, have gradually entered a correction phase.” He attributed this to two main factors: a significant and rapid rise in the first half of the year, and negative impacts on funding from tech assets primarily focused on TMT, leading to larger corrections in A-share innovative drugs compared to H-shares during Q3.

Based on this assessment, Liang Furui clearly stated: “At this point in time, many innovative drug stocks offer great value for money.” His stock selections in Q3 were largely guided by three aspects: reading clinical data, overseas licensing of pipelines, and domestic sales expansion, while also significantly increasing allocations in non-oncology areas.

In response to market changes, Liang Furui pointed out that “the gradual stabilization of overseas licensing expectations is the main factor for the price corrections of held stocks,” suggesting that “the innovative drug sector has entered an Alpha period for individual stocks.”

This implies that the previous sector-wide rally may be tapering off, requiring a more selective approach for truly competitive individual stocks moving forward. He revealed that in future stock selections, he would “increase the selection weight of core pipeline global competitiveness and scarcity,” and seek a better balance between “individual stock's future potential, certainty of drug development, and certainty of international expansion,” aiming for “the logic of held stocks to be plausible and the expectations around individual stocks to be straightforward”.