Feng Huang Wang Cai Jing·2025-05-30 11:18Market Overview - The last trading day before the Dragon Boat Festival saw a volume contraction in the two markets, with the pharmaceutical sector experiencing a broad rally, particularly in Alzheimer's, innovative drugs, and CROs [1] - Several stocks, including Ruizi Pharmaceutical, Wanbangde, and Hainan Haiyao, hit the daily limit up [1] - The pork and chicken sectors also saw a rise, while bank stocks remained active, with Hangzhou Bank and Chengdu Bank reaching new historical highs [1] Banking Sector - Despite the strong performance of bank stocks, a sell-off occurred in multiple bank stocks towards the end of the trading session, indicating a potential profit-taking behavior ahead of the holiday [8] - Regional banks like Hangzhou Bank and Chengdu Bank attracted end-of-day funds due to their earnings elasticity, but this was not enough to offset the selling pressure from larger state-owned banks [8] - The banking sector has been a focus for investors this year, driven by increasing risk aversion, and is expected to remain a key market theme post-holiday [8] Pharmaceutical Sector - On May 29, the National Medical Products Administration approved 11 innovative drugs for market entry, a notably rare occurrence [10] - Among these, five were from innovative companies listed on the Sci-Tech Innovation Board, indicating a supportive policy environment for the innovative drug sector [10] - The current valuation of the innovative drug industry stands at a price-to-earnings ratio (TTM) of 27.74, with a 150% premium over the CSI 300 index, suggesting a stable growth outlook despite recent net outflows from the sector [10] Social Security Fund Holdings - A summary of the latest holdings by the Social Security Fund highlights several pharmaceutical stocks, including Wo Wu Biological, Jiuzhou Pharmaceutical, and others, with varying market capitalizations and price-to-earnings ratios [12] - The data indicates a focus on companies with strong growth potential and established market positions within the pharmaceutical sector [12]