Currently, the domestic economic fundamentals are generally stable, and crucial policy windows are emerging. Simultaneously, the external environment is complex, and the trajectory of China-U.S. trade relations has become a key focus for the market, leading to increased external disturbances in the short term.
Against this backdrop, what kind of trend will the A-share market exhibit? Which investment opportunities within the pharmaceutical sector should receive special attention? Let's explore the latest insights from the fund managers of Great Wall Fund’s Pharmaceutical Investment Team.
Tan Xiaobing: Attention to the Potential Second Wave in Pharmaceuticals
On the macro front, it is anticipated that the Sino-U.S. trade negotiations may reach a conclusion by the end of the year, with the upcoming meetings of the Federal Reserve in Q4 and China's political bureau also being critical in determining the upward potential of the market. Both China and the U.S. are focused on the growth trends of their economies, and shifts in these economic trends will also influence capital flows. Looking forward, we will pay attention to the possible second wave in pharmaceuticals, progress in the robotics industry, and whether consumer trends might reverse.
Long Yufei: Continuing to Explore AI-Related Medical Stocks
We remain optimistic about investment opportunities arising from the integration of technological innovation with the pharmaceutical sector. Currently, both the global environment and domestic policies are favorable for technological innovation, while the pharmaceutical industry is expected to benefit long-term from demographic changes, with the potential for rebound after significant price adjustments.
Although the new pharmaceutical technologies we focus on (like AI healthcare) performed relatively poorly in Q3 compared to stronger sectors like AI hardware, the accelerated construction of artificial intelligence infrastructure is enhancing applications in the medical sector. The assistance of AI in diagnosing, developing innovative drugs, and brain-computer interface technologies is expected to become more evident, prompting us to continue searching for individual stock opportunities within this space.
Liang Furui: Monitoring Overseas Authorization Progress for Innovative Drugs
Looking ahead to Q4, as the TACO (Trump Always Caves In) incident progresses and economic outlooks evolve, market risk preferences should not significantly decline. We expect the market to continue experimenting with industry rotation strategies. Considering the rhythm of Q3 earnings reports and changing market risk appetites, there will likely be significant advantages in terms of performance metrics and industry catalysts during the rotation process. We will focus on innovative drug varieties that balance win rates and odds, placing emphasis on overseas product authorizations, data read-outs, and the improvement of financial statements.
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