Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (02268.HK) with a target price of HKD 68.47, reflecting a strong long-term growth outlook despite short-term challenges [3][5]. Core Insights - WuXi AppTec is positioned as a global leader in ADC CRDMO, with a solid order backlog and capacity layout. The company is expected to experience strong long-term growth momentum, even though short-term performance may be impacted by the integration of Dongyao and the ramp-up of new capacities [3]. - The company achieved a revenue of RMB 59.4 billion in 2025, representing a year-on-year growth of 46.7%. The overseas revenue share increased to 85%, driven by active licensing, New-Co, and M&A transactions [10]. - The company signed new orders worth USD 1.33 billion in 2025, a 41% increase year-on-year, with a backlog of USD 1.49 billion, up 50.3% year-on-year, indicating a robust short-term order reserve [10]. - The company has established a strong commercial pipeline with 69 projects advancing to the iCMC stage and has signed 70 new iCMC projects, showcasing efficient commercial funnel operations [10]. - A recent licensing agreement with Earendil Labs for the WuxiTecan-2 payload-linker technology platform, valued at USD 885 million, highlights the company's ability to explore new revenue streams through technology licensing and collaboration [10]. Financial Summary - The projected financials for WuXi AppTec from 2023 to 2027 indicate significant growth, with revenues expected to reach RMB 10,844 million by 2027, reflecting a compound annual growth rate (CAGR) of 33.4% [4]. - The company's gross margin is projected to improve from 26.3% in 2023 to 36.6% by 2027, while net profit margin is expected to stabilize around 25% [4]. - The earnings per share (EPS) is forecasted to increase from RMB 0.23 in 2023 to RMB 2.15 in 2027, indicating strong profitability growth [4].

Market Overview - The A-share market indices experienced a significant narrowing of declines this week, indicating a shift in market sentiment from panic to recovery, with a gradual rebalancing of capital styles [2][3][7] - Despite continued net outflows of main funds, a marginal improvement trend has begun to emerge, suggesting the market is in a critical window of "weak recovery + rebalancing" [2][3] Index Performance - Major A-share indices continued their adjustment but showed a notable reduction in declines compared to the previous week, transitioning from a rapid drop phase to a weak oscillation recovery phase [3][7] - Small-cap stocks experienced a technical rebound after emotional clearance, while previously resilient growth sectors, represented by the ChiNext, turned into the leading decliners, highlighting significant style rotation [3][7] Sector Rotation - The market is dominated by a "defensive + price increase" theme, with materials, utilities, and healthcare sectors rising approximately 2.5%, reflecting a preference for assets with "resource attributes + stable cash flow" [10][3] - Conversely, sectors such as information technology, finance, and certain consumer segments faced pressure, indicating that high valuation and high beta assets are still undergoing valuation digestion [10][3] Trading Volume - A-shares exhibited a "volume contraction" characteristic this week, with weekly trading volume decreasing from 11.06 trillion yuan to 10.56 trillion yuan, indicating a continued decline in trading enthusiasm [23][25] - Daily trading amounts fell from approximately 2.45 trillion yuan at the beginning of the week to 1.86 trillion yuan by Friday, with the market turnover rate dropping from 4.98% to 3.66% [23][25] Fund Flow - Main funds exhibited a "first out, then in" pattern, with a net outflow of 795 billion yuan on Monday due to external geopolitical shocks, followed by a net inflow of 150 billion yuan on Wednesday, marking a key turning point for the week [32][36] - By Friday, main funds continued to flow in with a net inflow of 82.58 billion yuan, indicating a shift from broad withdrawal to structural positioning [32][36] Market Sentiment - The market displayed a typical "V-shaped recovery" this week, with the number of stocks hitting the daily limit down reaching 145 on Monday, but quickly rebounding with a significant number of stocks hitting the limit up in subsequent days [41][46] - Margin financing balances have shown a clear downward trend, reflecting a cautious shift in sentiment, although a slight recovery was observed in the latter part of the week [42][46] Upcoming Focus - Attention will be on policy, macro data, and external disturbances, as the upcoming quarter is a crucial window for assessing economic recovery [50][51] - The market will also face the unlocking of restricted shares for 26 companies next week, which may exert pressure on stock prices [51][53]

Market Performance - The Shanghai Composite Index increased by 0.63%[3] - The Shenzhen Component Index rose by 1.13%[3] - The CSI 300 Index saw a gain of 0.56%[3] - The ChiNext 50 Index grew by 0.93%[3] Sector Performance - The pharmaceutical and biotechnology sector led with a gain of 3.70%[3] - The non-ferrous metals sector increased by 2.88%[3] - The basic chemicals sector rose by 2.55%[3] - The utilities sector declined by 0.78%[3] - The banking sector fell by 0.50%[3] Concept Indices - The lithium mining index surged by 7.42%[3] - The lithium battery electrolyte index increased by 6.18%[3] - The innovative drug index rose by 5.42%[3] - The high送转 index decreased by 2.80%[3] Market Outlook - The market is expected to continue fluctuating, influenced by geopolitical tensions in the Middle East and oil prices[7] - The resilience of the market is supported by recent policy interventions from the central bank and the securities regulatory commission[7] - Attention should be paid to the latest developments in the Middle East over the weekend[7]

1. Report Industry Investment Rating - No information provided in the given content 2. Core Viewpoints of the Report - As of March 22, 2026, the model recommends investing in non - ferrous metals, media, communication, steel, non - bank finance, and pharmaceutical biology, with marginal increases in non - ferrous metals, steel, and pharmaceutical biology. Non - bank finance, steel, and communication are mainly driven by expected boosts, while non - ferrous metals, media, and pharmaceutical biology are mainly driven by price - volume reversals and capital flows [2] - The industry rotation model assesses market micro - structure from fundamental, price - volume, and sentiment dimensions, and constructs a strategy using 7 relatively effective factors [2] 3. Summary by Relevant Catalogs 3.1 Industry Rotation Model and Recommended Industries - The industry rotation model analyzes from three dimensions: fundamentals, price - volume, and sentiment. It back - tests original factors bi - weekly and expands price - volume factors from multiple dimensions, ultimately selecting 7 factors to build a strategy [2] - Recommended industries are non - ferrous metals, media, communication, steel, non - bank finance, and pharmaceutical biology, with marginal increases in non - ferrous metals, steel, and pharmaceutical biology [2] 3.2 Industry ETF Portfolio - The industry ETF portfolio includes Southern China Securities Shenwan Non - Ferrous Metals ETF, GF China Securities Media ETF, Guotai China Securities All - Index Communication Equipment ETF, Guotai China Securities Steel ETF, E Fund CSI 300 Non - Bank Financial ETF, and E Fund CSI 300 Medical and Health ETF [4] - Details of each ETF, such as weight, year - end scale, institutional investors, trading volume, and returns, are provided. For example, the Southern China Securities Shenwan Non - Ferrous Metals ETF has a weight of 16.67%, a year - end scale of 20.591 billion yuan, and a one - year return of 77.03% [5] 3.3 Performance of the Industry Rotation Strategy - The industry rotation strategy declined 1.18% in the past two weeks, with an excess return of 3.18%. The excess return in the past year was 20.68%, the Sharpe ratio was 1.93, and the Calmar ratio was 3.83 [5][7] 3.4 Strategy/Composite Factor Back - testing Results - Different factors (price - volume, fundamental, and sentiment) have different IC means, IC standard deviations, ICIRs, and frequencies of IC>0. For example, the成交均价因子 has an IC mean of 4.02% and an ICIR of 15.14% [10] - After optimization, the composite factor has an IC mean of 7.81%, an ICIR of 32.49%, and a frequency of IC>0 of 46.64% [10]

Market Overview - The market shows structural differentiation in capital flow, with large orders' outflow momentum narrowing. Institutional funds exhibit a net outflow from the Wande All A and Sci-Tech Innovation indices, but the outflow momentum has significantly decreased. The ChiNext index shows fluctuating capital flows, indicating a competitive dynamic among institutional funds [2][6][25] - Retail investors maintain a consistent trend, showing a slow net inflow into the Wande All A and ChiNext indices, while remaining cautious towards the Sci-Tech Innovation index [6][25] Capital Flow by Market Capitalization and Valuation Style - Large-cap stocks demonstrate strong support, while small-cap stocks exhibit heightened sensitivity to market fluctuations. Institutional funds have reduced net outflows from high-valuation indices, indicating a shift in market dynamics [17][25] - The recent volatility in the CSI 300 reflects strong market support and pricing power among large-cap stocks, while small-cap stocks are more susceptible to liquidity fluctuations [17][25] Capital Flow by Major Industry Style - Institutional funds are cautiously returning to cyclical manufacturing and consumption sectors, with a notable shift from outflows to inflows in these categories as of March 23. Retail investors continue to heavily invest in cyclical manufacturing [25][62] - The dividend sector shows less volatility, indicating strong stability in this segment during turbulent market conditions [25] Capital Flow by Primary Industry Upstream Resources - Institutional outflows from non-ferrous metals have narrowed, while basic chemicals show a similar trend of reduced outflow. Retail investors are actively accumulating in the non-ferrous metals sector, with their capital scale surpassing other industries [37][40] Midstream Materials & Manufacturing - The electric equipment sector maintains high competitive intensity, with institutional buying power in construction materials showing a temporary increase. Institutional funds have reduced outflows in electric equipment significantly since March 19 [40][62] Downstream Essential Consumption - Institutional funds have not shown significant buying momentum in essential consumption sectors, although the outflow trend has slowed down recently. Notably, there has been substantial outflow from pharmaceuticals and agriculture sectors [47][62] Downstream Discretionary Consumption - In discretionary consumption, institutional funds are showing a fluctuating inflow in light industry manufacturing, while the home appliance sector has shifted from net inflow to net outflow, with recent outflows narrowing [52][62] TMT (Technology, Media, and Telecommunications) - The TMT sector shows slight net inflows in communications, while electronics experience oscillating outflows. The sector is primarily driven by small retail investments [55][62] Large Financials - Institutional interest in non-bank financials has decreased significantly, with retail investors increasing their net inflows in this sector since March 19 [62][68] Support Services - The public utility sector shows significant volatility in institutional capital flow, alternating between net inflows and outflows, highlighting a competitive market dynamic [71][62] Leverage Capital Overview - The margin financing balance has slightly decreased, with the average collateral ratio lowering, indicating that leverage risks remain manageable. As of March 25, the total margin financing and securities lending balance is approximately 2.62 trillion yuan [75][81] - The trading activity in margin financing has declined, with the proportion of margin trading transactions at 9.45%, reflecting a continued adjustment in market sentiment [77][81] - The overall leverage capital holding level has slightly adjusted, with significant declines observed in the oil and gas sector and construction materials, indicating a cooling off from previous highs [81]

Market Overview - A-shares opened lower but rose throughout the day, with major indices collectively increasing and turning positive [1] - The A-share market saw a surge in the non-ferrous metals, pharmaceutical biology, and basic chemicals sectors, leading to a wave of stocks hitting the daily limit [1][4] A-share Performance - By the end of the morning session, the Shanghai Composite Index rose by 0.26%, the Shenzhen Component Index by 0.93%, the ChiNext Index by 0.83%, and the Sci-Tech Innovation Index by 1.08% [4] - The non-ferrous metals sector led the gains with an increase of 2.6%, with multiple stocks hitting the daily limit, including Shenzhen New Star, Haixing Co., Rongjie Co., Yunnan Zhiye, and others [4][5] Pharmaceutical Sector - The pharmaceutical biology sector also performed well, with stocks like Hotgen Biotech, Yinuo Si, Shutaishen, and Huana Pharmaceutical seeing increases of over 10% [6][7] - Notable stocks in this sector included Hotgen Biotech with a rise of 14.70% and Shutaishen with an increase of 11.50% [7] Basic Chemicals Sector - The basic chemicals sector experienced significant gains, with stocks such as Keta Biotech and Shandong Haihua hitting the daily limit [8][9] - Keta Biotech saw a remarkable increase of 19.99%, while other stocks in the sector also posted gains around 10% [9] New Listings - A new stock, Puan Medical, was listed today, with its price surging over 170% at one point during the session [11][12] - Puan Medical specializes in diabetes care and related medical devices, with a projected increase in global insulin pen needle sales from 8.81 billion units in 2022 to 9.97 billion units by 2024 [12] Hong Kong Market - The Hong Kong market experienced narrow fluctuations, with China Longgong's stock surging over 20% during the morning session [13][15] - China Longgong reported a total revenue of RMB 11.215 billion for the year 2025, reflecting a year-on-year growth of 9.81%, with significant contributions from electric loaders and export products [15][16]

1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Viewpoints of the Report - The development of science - innovation bonds has gone through three stages: the pilot exploration period from 2015 - 2021, the rapid development period from 2022 - 2024, and the innovation and upgrading period since 2025. As of the end of February 2026, the market stock scale reached 3.7 trillion yuan [10][15]. - Bond financing plays a key complementary role. It is suitable for growth - stage and mature - stage enterprises, is a key tool for technology - enterprise mergers and acquisitions, and has a more suitable financing term for technology development compared to bank loans [20]. - In the primary market, science - innovation bonds show characteristics such as scale expansion, longer terms, and industry diversification. The issuance scale has been increasing year by year, the term structure is becoming more long - term, and the industry distribution is gradually diversifying [30]. - In the secondary market, the credit risk pricing of "science and innovation" has not been fully reflected. Most science - innovation bonds have no significant valuation difference from non - science - innovation bonds, the turnover rate of science - innovation bonds has slightly declined, and the rise and fall of technology stocks have limited impact on science - innovation bonds in China [44]. - From an investment perspective, the science - innovation bond market is still in the cultivation stage. In the short term, there are excess spread opportunities in industries such as light manufacturing, coal, power equipment, communication, and medicine and biology. In the long term, the support for the hard - technology field is expected to be further enhanced, and there is still a possibility of obtaining excess returns by sinking into the hard - technology field [57]. 3. Summary According to the Directory 3.1 Ten - year Evolution Process of Science - innovation Bonds - **Pilot Exploration Period (2015 - 2021)**: The exchange and inter - bank markets explored the issuance of bonds such as dual - innovation bonds, science - innovation corporate bonds, and high - growth bonds, accumulating experience for subsequent development [10][11]. - **Rapid Development Period (2022 - 2024)**: The system design was continuously improved, and the scale of science - innovation bonds in the exchange and inter - bank markets expanded rapidly. By the end of 2024, the stock in the exchange market was nearly 1 trillion yuan, and that in the inter - bank market was nearly 400 billion yuan [14]. - **Innovation and Upgrading Period (Since 2025)**: The "science and technology board" of the bond market was innovatively launched. With policy guidance, the science - innovation bond market expanded rapidly, and three major breakthroughs were achieved in supporting construction [15]. 3.2 Key Complementary Role of Bond Financing - **Suitable for Growth - stage and Mature - stage Enterprises**: Science - innovation bonds are mainly targeted at growth - stage and mature - stage enterprises, which match the attributes of bond financing and are suitable for the light - asset characteristics of some growth - stage enterprises [21]. - **Key Tool for Mergers and Acquisitions**: Science - innovation bonds are a key tool for technology - enterprise mergers and acquisitions, with greater flexibility and pertinence than traditional credit, and can avoid equity dilution. The application of science - innovation bonds in the field of mergers and acquisitions has increased [23]. - **More Suitable Financing Term**: The financing term of science - innovation bonds is more suitable for technology development than bank loans, and it also provides stronger capital support for financial institutions [28]. 3.3 Primary Market: Market Scale and Structural Characteristics - **Issuance Scale**: Since 2022, the issuance scale of science - innovation bonds has increased year by year. In 2025, the issuance scale reached 2.3 trillion yuan, and as of the end of February 2026, the market stock scale reached 3.7 trillion yuan [31]. - **Term Structure**: The issuance term of science - innovation bonds shows a long - term trend, gradually matching the financing needs of science - and - technology innovation enterprises [31]. - **Industry Distribution**: Construction decoration, non - bank finance, and public utilities are the main issuers. The number of science - innovation bonds issued by hard - technology core fields such as electronics, medicine and biology, computer, and communication has been increasing, and traditional manufacturing and consumer industries have also begun to participate in the issuance [34]. - **Issuer Rating**: AAA - rated issuers are the main force, and the proportion of AA+ and AA - rated issuers is increasing [39]. - **Issuer Nature**: Central enterprises and local state - owned enterprises have a high proportion of issuance, and the proportion of private enterprises is gradually increasing [40]. - **Use of Raised Funds**: For financial institutions, 95% of the funds actually flow to science - and - technology innovation - related uses. For non - financial enterprises, issuing science - innovation bonds takes into account supplementing liquidity, optimizing the financing structure, and reducing financing costs [42]. 3.4 Secondary Market: Price - volume Performance and Stock - bond Correlation - **Valuation Difference**: Most science - innovation bonds have no significant valuation difference from non - science - innovation bonds, and science - innovation bonds of weak - quality issuers have a credit premium [45]. - **Turnover Rate**: The turnover rate of science - innovation bonds has slightly declined and is close to that of non - financial credit bonds, indicating that the market is in the transition from policy - driven to endogenous development [51]. - **Impact of Technology Stocks**: The rise and fall of technology stocks have limited impact on science - innovation bonds in China. The "science and technology" of Chinese science - innovation bonds is mainly reflected in the use of funds, while that of US "technology bonds" is directly related to the business attributes of issuers [53]. 3.5 Science - innovation Bonds from an Investment Perspective - **Short - term**: There are excess spread opportunities in industries such as light manufacturing, coal, power equipment, communication, and medicine and biology. The excess spread in industries with a high proportion of private enterprises is more significant [57]. - **Long - term**: The support for the hard - technology field is expected to be further enhanced. There is still a possibility of obtaining excess returns by sinking into the hard - technology field. Attention can be paid to the risk - return ratio of the credit enhancement mechanism [60].

Group 1 - The Shanghai 50 ETF (510050) opened at 2.911 yuan, with an increase of 0.38% on March 25 [1][2] - Major holdings in the Shanghai 50 ETF include Kweichow Moutai, which rose by 0.20%, Ping An Insurance up by 0.65%, Zijin Mining up by 4.04%, and others like China Merchants Bank and Industrial Bank showing slight increases [1][2] - The Shanghai 50 ETF has a performance benchmark of the Shanghai 50 Index, managed by Huaxia Fund Management Co., with a return of 397.48% since its inception on December 30, 2004, and a recent one-month return of -6.98% [1][2] Group 2 - The MACD golden cross signal has formed, indicating a positive trend for certain stocks [3]

Market Overview - The A-share market experienced an overall decline on March 23, with the Shanghai Composite Index closing at 3813.28 points, down 3.63%, the Shenzhen Component Index at 13345.51 points, down 3.76%, and the ChiNext Index at 3235.22 points, down 3.49% [2] Capital Flow - The main capital outflow from the A-share market reached 794.83 billion yuan for the day [3][7] - The CSI 300 index saw a net capital outflow of 237.25 billion yuan, while the ChiNext experienced a net outflow of 349.25 billion yuan and the STAR Market had a net outflow of 43.7 billion yuan [4] Sector Performance - The electronics sector led the capital outflow with a net outflow of 202.07 billion yuan, followed by the communication sector with 107.15 billion yuan, and the power equipment sector with 94.81 billion yuan [6][12] - The top five sectors with the largest capital outflows included electronics (-5.94%), communication (-5.88%), power equipment (-3.46%), machinery (-5.67%), and pharmaceuticals (-5.75%) [8] Institutional Activity - Institutions showed significant interest in several stocks, with Huamin Co. seeing a net institutional buy of 51.92 million yuan, while Jinkai New Energy experienced a net sell of 217.13 million yuan [13][14] - The latest institutional focus includes stocks like Longjing Environmental Protection, New Spring Co., and Guizhou Moutai, with target price increases ranging from 17.01% to 53.74% [15]

Core Viewpoint - The article highlights the performance and management strategy of the Dongfanghong Strategy Selected Mixed A Fund, which has consistently delivered positive returns over the years, making it a suitable investment option for risk-averse investors seeking alternatives to bank deposits [3][20]. Fund Performance - The Dongfanghong Strategy Selected Mixed A Fund has been established for over 10 years, with an annualized return exceeding 6% and a total return of 77.95% since the current manager, Kong Lingchao, took over in August 2016 [3][4]. - The fund has only experienced a slight decline of 0.94% in 2022, while achieving positive returns in all other years, outperforming the CSI 300 index during bear markets and significantly beating performance benchmarks during bull markets [9][10]. Fund Management - Kong Lingchao manages a total of 9 funds, with the Dongfanghong Strategy Selected Mixed A being the best performer among them, currently holding assets of 13.35 billion [4][6]. - The fund maintains a conservative stock allocation of below 25% and a bond allocation of over 70%, with a focus on managing drawdowns effectively, keeping the maximum dynamic drawdown under 5% [11][14]. Asset Allocation - As of the end of 2025, the fund's asset allocation includes 58.6% in financial bonds, with medium-term notes, corporate bonds, and corporate short-term financing bonds making up 22.2%, 10.36%, and 7.46% respectively [15]. - The equity allocation is diversified, with the largest sector being media at 9.18%, followed by electronics, pharmaceuticals, basic chemicals, textiles, non-ferrous metals, and others, all within the 5%-9% range [15][16]. Institutional Interest - The fund has attracted significant institutional interest, with institutional holdings reaching nearly 90% during the weak market of 2022, and still maintaining a 56% share as of mid-2025 [12]. Investment Strategy - The fund's strategy includes a balanced approach to equity investments, with a focus on sectors that may recover from pessimistic earnings expectations, particularly in AI and traditional industries [20].