Since the beginning of this year, Great Wall Fund's medical investment team has delivered exceptional performance, with multiple healthcare-focused funds producing impressive results, demonstrating deep insights into industry trends and validating their long-accumulated professional expertise. Based on the pharmaceutical industry's "long slope, thick snow" characteristics, this investment and research team is embracing a more open perspective and collaborative approach to navigate the pharmaceutical industry cycles alongside investors.
From the current vantage point, which subsectors within the pharmaceutical industry may offer more promising investment opportunities? Let's examine the latest perspectives from Great Wall Fund's medical investment team fund managers.
**Tan Xiaobing: Bullish on Innovative Drugs and Robotics**
We believe the market may experience volatility in the short term, and personally favor innovative drugs and robotics sectors.
Regarding innovative drugs, based on public fund holdings data from the end of the second quarter, the beta phase of this market rally may still be in its early stages. However, due to significant gains in July and substantial corrections in August due to lack of catalysts, we may wait for catalysts from major conferences and medical insurance negotiation preparations after September.
**Long Yufei: Optimistic About AI Healthcare-Led Medical New Technologies**
From April to now this year, compared to the strong performance of AI hardware (particularly overseas computing power), AI applications have shown modest performance. We understand that under an industrial wave, "hardware first, software later" follows logical patterns, but AI applications remain worth anticipating from a logical perspective.
Medical new technologies represented by AI healthcare continue advancing industrially. From a long-term perspective, demand certainty is strong, supply continues to expand and iterate, and many companies within this space remain at relatively low positions with potential for improving business fundamentals. Therefore, when AI models and application-side catalysts emerge in the future, regaining market favor is worth expecting.
Additionally, the pharmaceutical industry places significant emphasis on policy guidance. Currently, besides innovative drugs receiving strong policy support, some medical new technology directions (such as AI intelligent agents, brain-computer interfaces, surgical robots, etc.) have seen policy support intensity significantly strengthen compared to the past. If future market styles continue to focus on "innovation bull markets," we will continue to deeply explore sectors and individual stocks with technological innovation potential within pharmaceuticals.
**Liang Furui: Focus on Fundamental Realization of Innovative Drugs**
In August, A-shares and H-shares showed differentiation with "A-shares relatively strong, H-shares structurally outperforming." H-shares saw non-ferrous metals, electronics, and media leading gains, while A-shares growth styles (new energy, TMT, etc.) performed prominently. Due to strong performance in TMT and other pan-technology assets, A-shares experienced rapid "capital drainage" from innovative drugs, with obvious sector capital outflows. H-shares, supported by southbound capital inflows, partially resisted interest rate rise impacts, overall showing large-cap stocks leading gains or showing resilience while small and mid-cap stocks experienced significant retreats across both A/H markets.
Looking ahead, the pharmaceutical market is expected to return to its predetermined trajectory to some extent. Overall, large-cap stock growth driven by capital flows is limited. I am more optimistic about the stock price potential of small and mid-cap innovative drug stocks with fundamental realization.
**Disclaimer**: The information contained in this communication comes from sources the company considers reliable and individual analyst judgments, but the company provides no direct or implied statements or guarantees regarding its accuracy or completeness. This communication is not a complete representation or summary of relevant securities or markets, and any expressed opinions may change without separate notice. This communication should not be received as a substitute for independent judgment or investment decision-making basis. The company, its related institutions, employees, or agents assume no responsibility for any actions taken by any person using all or part of this content or any losses arising therefrom. Without prior written permission from Great Wall Fund Management Co., Ltd., no person may distribute, reproduce, reprint, or publish this report or any part thereof in any form, nor make any deletions or modifications contrary to the original intent. Fund management reminds that every citizen has the obligation and right to report money laundering crimes. Every citizen should strictly comply with relevant anti-money laundering laws and regulations. Funds carry risks, investment requires caution.