Core Viewpoint - The A-share market has shown a strong performance, with the Shanghai Composite Index reaching 3700 points, indicating a recovery from previous economic shocks. A trend of gradual growth has emerged since April 27, following the impact of U.S. tariffs, leading to a widening gap between stock strategies and other primary strategies [1]. Summary by Categories Market Performance - The A-share market has entered a four-month trend of gradual growth, with a noticeable recovery in the index [1]. - Quantitative long strategies and subjective long strategies have both performed well, with quantitative long strategies achieving a return of 25.02% and subjective long strategies averaging 5.86% in July [3][4]. Strategy Performance - Among various strategies, subjective long strategies have outperformed quantitative long strategies due to their concentrated positions and flexibility in trading [4]. - The average return for subjective long strategies across different scales of private equity funds has been significant, with the highest returns observed in the 10-20 billion category at 25.43% [18]. Fund Performance - The top-performing subjective long products in the 100 billion category include "和谐汇一医疗创新B类份额" managed by 施跃, achieving a return of ***% [7][5]. - In the 50-100 billion category, "同犇22期" managed by 童驯 led with a return of ***% [14]. - The 20-50 billion category saw "丹羿鹏程1号1期" managed by 王帅 achieving a return of ***% [17]. - In the 10-20 billion category, "能敬价值优选二号" managed by 孙杰 led with a return of ***% [21]. - The 5-10 billion category was topped by "优波三号A类份额" managed by 陈龙 with a return of ***% [24]. - The 0-5 billion category saw "子衿云杉" managed by 邹凯 achieving a return of ***% [28]. Investment Insights - Fund managers are focusing on sectors such as innovative pharmaceuticals and medical devices, indicating a re-evaluation of high-quality assets in China [8]. - The market is currently in a phase where investors are cautious about the sustainability of earnings for companies that have seen significant price increases [8].

Group 1 - The pharmaceutical and healthcare sector has experienced a significant rebound, with the Wind Innovation Drug Index showing a year-to-date increase of over 20% and the Hong Kong innovation drug sector leading the market with nearly a 50% rise [1] - The Hong Kong pharmaceutical ETF has become a market focus, with the largest innovation drug ETF reaching a size of 13.59 billion and a net inflow of 230 million over the past five trading days, reflecting a growth of over 6% in the last month [1] - Key stocks in the ETF include WuXi Biologics and BeiGene, which have a research and development expenditure ratio exceeding 15%, with net profit growth and overseas expansion capabilities being the core logic for investment [1] Group 2 - The medical theme fund managed by the China-Europe Medical Fund has stabilized at 40 billion, focusing on innovative drugs, medical devices, and domestic substitution in key industry chains [2] - For instance, Hengrui Medicine is projected to achieve a revenue growth of 22.63% and a net profit growth of 47.28% in 2024, with 17 self-developed innovative drugs contributing nearly 50% of sales revenue [2] - Recent policy changes in China, including the establishment of a drug pricing mechanism and the inclusion of high-value innovative drugs in pilot programs, are expected to support the recovery of the sector [2] Group 3 - The current policy environment emphasizes innovation, contrasting with previous industry shocks caused by generic drug procurement, leading to a faster valuation recovery for companies with sustained R&D capabilities [3] - The China-Europe Medical Fund's report indicates a continued focus on innovative drugs, medical devices, and consumer healthcare, with optimism about breakthroughs in innovative drugs and the recovery of consumer healthcare [3] - The pharmaceutical and healthcare sector is anticipated to benefit from favorable development opportunities as more innovative drugs are successfully launched and the market expands [3]