Core Viewpoint - The MSCI China Healthcare Index has increased by 59.5% year-to-date, outperforming the MSCI China Index by 24%, but has recently experienced a correction of approximately 10% since early October, indicating that some stocks are undervalued and still attractive for investment [1] Group 1: Market Performance - The MSCI China Healthcare Index has shown a significant year-to-date increase of 59.5% [1] - This index has outperformed the MSCI China Index by 24% [1] - The healthcare sector has seen a recent correction, with a decline of about 10% since early October [1] Group 2: Investment Recommendations - The report highlights several companies with "buy" ratings, including: - 3SBio (01530) - Genscript Biotech (02273) - Junshi Biosciences (02367) - WuXi AppTec (02268) - Innovent Biologics (01801) - China Biologic Products (01177) [1] Group 3: Market Outlook - The capital market is expected to see a recovery in financing activities [1] - There is an anticipated expansion in the overseas trading scale of innovative drugs [1] - Domestic demand for innovative drug research and development is expected to rebound [1] - The U.S. entering a rate-cutting cycle may lead to a recovery in the performance of CXO companies in the second half of the year [1] - The clinical development of authorized innovative drug pipelines overseas is expected to be a significant catalyst for the innovative drug sector [1]