Core Insights - The report highlights the performance of the Changcheng Pharmaceutical Industry Selected Mixed A Fund, which has shown significant growth in equity scale, particularly in the technology sector, despite recent market adjustments [1][3]. Performance Analysis - As of October 22, 2025, the fund's unit net value is 1.7983, with a cumulative return of 79.83% since its establishment on October 22, 2024, and a year-to-date increase of 88.34% [1][3]. - The fund has experienced a notable decline of -8.81% over the past month and -14.29% over the last three months, indicating challenges faced by the pharmaceutical sector, especially in the innovative drug field during the third quarter [3][4]. Portfolio Composition - The top ten holdings of the fund have a combined market value of 1.313 billion, heavily concentrated in the innovative drug sector, which differs from the asset allocation logic of technology funds [4]. - The top three holdings include Innovent Biologics, 3SBio, and Hotgen Biotech, with a clear focus on biotechnology and innovative pharmaceutical companies [5]. Investment Strategy - The fund manager, Liang Furui, noted that the A/H market saw multiple sectors rise, primarily driven by technology and precious metals, with an average daily trading volume in the A-share market exceeding 2 trillion [5]. - Despite the strong performance of technology sectors, innovative drugs have entered a correction phase due to significant gains in the first half of the year and negative impacts from TMT-focused capital outflows [5][6]. - Liang Furui emphasized that many innovative drug stocks are now highly cost-effective, suggesting a shift towards selecting individual stocks with genuine competitive advantages as the sector moves into an "individual alpha phase" [6]. Future Outlook - The focus will be on increasing the weight of stocks with global competitiveness and scarcity in core pipelines, balancing long-term potential, drug certainty, and international market viability [6].