Core Viewpoint - The article discusses the complexities and investment opportunities within the pharmaceutical sector, highlighting the numerous indices available for investors to consider [2][3][17]. Summary by Sections Overview of Pharmaceutical Indices - There are a total of 27 pharmaceutical industry or thematic indices tracked by funds, divided into 12 broad-based indices and 15 thematic indices [2][3]. Traditional Pharmaceutical Indices - Traditional indices include major A-share indices that require profitability for listing, such as: - CSI All Pharmaceutical Index (000991): Covers the entire industry chain, including chemical pharmaceuticals, medical devices, and services [7]. - CSI Pharmaceutical Health Index (000933): Strong industry representation, covering leading companies across the industry chain [7]. - National Pharmaceutical Industry Index (399394): Focuses on 80 prominent stocks in the A-share market [7]. - CSI Pharmaceutical 50 Index (931140): Selects 50 leading pharmaceutical stocks emphasizing R&D investment and market share [8] [9]. Emerging Pharmaceutical Indices - Emerging indices focus on innovative drugs, medical themes, and biotechnology, including: - CSI Innovative Drug Industry Index (931152): Concentrates on companies developing innovative drugs [10]. - National Biopharmaceutical Index (399441): Targets high-growth companies in the biopharmaceutical innovation sector [10]. - CSI Medical Index (399989): Comprises medical devices and services, benefiting from new medical infrastructure and domestic replacements [11]. Current Valuation Levels - As of March 18, 2025, the price-to-earnings (PE) ratios of 12 pharmaceutical indices indicate that most are below their historical averages, suggesting they are not overvalued. Five indices are considered "normal undervalued" while four are "undervalued" [14][15]. Investment Strategies - The article suggests that investors may consider focusing on emerging indices for higher return potential, albeit with greater volatility. Conversely, conservative investors might prefer traditional indices, which also include exposure to emerging sectors [17][18]. - Actively managed pharmaceutical thematic funds have historically outperformed during bull markets and have shown resilience during bear markets, making them a viable option for investors [19].