Core Viewpoint - The article emphasizes the unique insights of Zheng Ning, a fund manager at Zhongyin Fund, into value investing in the innovative pharmaceutical sector, highlighting his focus on constructing a high-risk-return investment portfolio based on implied return rates under neutral free cash flow assumptions [1][2]. Investment Philosophy - Zheng Ning's investment logic is influenced by his financial background and experience in the pharmaceutical industry, leading him to establish a comprehensive analysis framework for asset pricing [2]. - The core of his pricing strategy revolves around the implied return rate under neutral free cash flow assumptions, focusing on the probability distribution of cash flows to determine investment opportunities [2][3]. Market Timing and Strategy - Zheng Ning recognized the potential of undervalued innovative pharmaceutical assets as early as July 2022, positioning himself as one of the first fund managers to heavily invest in this sector [3]. - His investment approach involves a systematic process of assessing stock positions based on fundamental, valuation, liquidity, and policy factors, allowing for disciplined portfolio management during market extremes [3][4]. Performance and Adjustments - Since taking over public fund products, Zheng Ning has experienced both successes and setbacks, adjusting his portfolio based on market conditions and sector performance [4][5]. - He has shifted focus towards innovative pharmaceutical companies, particularly as other sectors showed weaker fundamentals, leading to a concentration in this area [4]. Future Outlook - Zheng Ning believes that the current rally in innovative pharmaceutical stocks is fundamentally driven, supported by favorable conditions such as low valuations, policy encouragement, and institutional underweighting [5][6]. - He sees significant growth potential in leading innovative pharmaceutical companies, asserting that the best time to invest in Chinese innovative pharmaceuticals is likely within the next few years [5][6]. Investment Focus - The fund manager is particularly interested in traditional pharmaceutical companies that are successfully transitioning to innovative drug development, viewing them as key players in the future landscape of China's innovative pharmaceutical industry [6]. - As the performance of innovative pharmaceutical companies improves, Zheng Ning aims to balance the exposure of growth and value factors in his portfolio, striving for a "healthy" investment state [6].

Group 1 - The latest Federal Reserve meeting minutes indicate a complex signal regarding monetary policy amid external shocks, particularly inflationary pressures from tariffs [1][3] - If tariff-induced price increases are sustained and exceed expectations, the Federal Reserve may consider maintaining a stricter monetary policy stance, even if core inflation data temporarily declines [3] - The minutes acknowledge a potential "stagflation" scenario where rising inflation coincides with a weakening labor market, forcing the Federal Reserve to make difficult trade-offs between inflation and employment targets [3][4] Group 2 - Following the release of the minutes, short-term interest rate futures experienced increased volatility, reflecting investor uncertainty about potential rate cuts in September [4] - The Federal Reserve's policy path is becoming highly data-dependent, with no clear signals indicating whether inflation expectations are out of control or if there is significant deterioration in employment [4] - The current environment is characterized by political risks, disrupted global supply chains, and misaligned expectations between domestic prices and employment, making upcoming data crucial for future policy decisions [4]