Core Viewpoint - The innovative drug sector has shown a sharp upward trend, attracting funds that previously focused on other pharmaceutical segments to increase their positions in innovative drugs [1][3][10]. Group 1: Fund Movements - Several funds have shifted their focus towards innovative drugs, with notable examples including Huafu Health Entertainment, which initially held positions in various pharmaceutical stocks but has now significantly adjusted its portfolio towards innovative drugs [3][4]. - Funds like Yongying Pharmaceutical Health and Shenyin Wanguo Pharmaceutical Pioneer have also shown similar trends, indicating a broader movement within the fund management community towards innovative drugs [4][5]. Group 2: Market Dynamics - There is a notable influx of new innovative drug-themed funds entering the market, alongside existing funds reallocating their investments [2][8]. - Despite the positive sentiment, some institutions have warned of potential overvaluation and market overheating in certain stocks within the innovative drug sector [2][11]. Group 3: Performance Metrics - Data from Wind indicates that on June 17, a fund's estimated net value dropped by 0.75%, while the Hang Seng Hong Kong Stock Connect Innovative Drug Index fell by 4.77%, highlighting the correlation between fund performance and the innovative drug index [4]. - A significant increase in ETF shares related to innovative drugs has been observed, with 17 out of 20 ETFs showing positive growth during a recent market correction [7]. Group 4: Future Outlook - Industry experts believe that the current market dynamics reflect a rational correction of previously overly pessimistic expectations regarding the innovative drug sector, with strong long-term growth potential anticipated [10][11]. - However, challenges remain, including high research and development costs, long timelines, and a low success rate for drug development, which necessitate careful investment strategies [11].

Core Viewpoint - The article discusses the current state of the innovative drug sector, highlighting a significant rise in stock prices and ETFs, while also expressing concerns about potential overvaluation and the sustainability of this growth [1][3][5]. Group 1: Market Performance - The innovative drug sector has seen substantial growth, with the Hang Seng Hong Kong Innovative Drug Select Index rising over 53% year-to-date as of June 6, 2023, and several innovative drug ETFs exceeding 30% gains [1][6]. - A structural increase in the pharmaceutical sector is noted, particularly in innovative drugs, although some analysts caution that the ability of certain companies to deliver profits remains uncertain [1][6]. Group 2: Investment Concerns - Fund manager Wan Minyuan warns that many innovative drug companies may never achieve significant earnings, suggesting that the current market may be experiencing a valuation bubble [3][4]. - Wan's funds have seen a dramatic decline in assets under management, dropping from over 15 billion yuan to approximately 4.063 billion yuan, reflecting a 73% decrease over two years [4]. Group 3: Future Outlook - Despite current concerns, there is optimism regarding the long-term potential of the innovative drug sector, with expectations that domestic companies will enhance their global competitiveness through international commercialization [4]. - The article notes that the innovative drug sector is entering a harvest period, with anticipated performance improvements in the second half of 2023 due to favorable policies and advancements in AI technology [7].

Group 1 - The core viewpoint of the article highlights the skepticism surrounding the high valuations in the innovative drug sector, with concerns that many companies may have reached their peak performance for the next three to five years [1][2] - The innovative drug market has seen significant growth, with the Hong Kong innovative drug ETF rising over 53% year-to-date as of June 6, 2023, and several innovative drug ETFs exceeding 30% gains [1][3] - There is a structural increase in the pharmaceutical sector, particularly in innovative drugs, but the sustainability of earnings for some companies remains uncertain [1][2] Group 2 - Fund manager Wan Minyuan expresses concerns about the high-risk nature of innovative drug R&D, suggesting that some companies may have inflated stock prices and potential valuation bubbles [2] - Wan Minyuan's management scale has drastically decreased from over 15 billion to approximately 4.063 billion, reflecting a 73% reduction over two years, with significant losses in his funds [2] - Despite the current skepticism, there is a long-term positive outlook for the innovative drug industry, as domestic companies are expected to enhance their global competitiveness through international commercialization [2][4] Group 3 - The innovative drug indices in both A-shares and Hong Kong have shown substantial increases, with A-share innovative drug index up over 20% and Hong Kong's close to 50% year-to-date [3] - There is a noticeable divergence among various pharmaceutical ETFs, with some experiencing significant inflows while others face substantial outflows, indicating mixed investor sentiment [3] - The approval of multiple innovative drugs by the National Medical Products Administration in May 2023 is expected to lead to significant sales growth for related companies, enhancing their performance [4]