Group 1 - The A-share market has recently experienced a significant upward trend, particularly in the pharmaceutical sector, which has shown a year-to-date increase of 60.77%, outperforming the overall A-share index by 22.14% as of September 2, 2025 [1] - The performance of pharmaceutical-themed mutual funds has also been strong, with notable returns since the beginning of the year, highlighting the growing interest in this sector [1] - Zhongyin Fund's pharmaceutical-themed funds have ranked highly among peers, with Zhongyin Innovation Medical A achieving top rankings over various time frames [1][2] Group 2 - The innovative drug sector in China is expected to have significant value discovery potential, becoming a strategic industry in China's export structure and a key pillar in the global pharmaceutical industry [2] - The investment approach of Zhongyin Fund's manager, Zheng Ning, focuses on filtering out market noise and concentrating on long-term implicit returns, which is considered a sustainable investment strategy [2] Group 3 - Zhongyin Hong Kong Stock Connect Medical A, managed by Zheng Ning since December 29, 2023, has shown a net value growth rate of 70.08% in the first half of 2025, significantly outperforming its benchmark [3] - Zhongyin Innovation Medical Mixed A, also managed by Zheng Ning, has demonstrated strong performance since its inception, with a net value growth rate of 54.08% in the first half of 2025 [4][5]

Core Viewpoint - The A-share market is experiencing a recovery in sentiment, with nearly 20 equity funds resuming large-scale subscriptions, indicating a positive outlook for future macroeconomic conditions and corporate earnings improvement [1][4][5]. Group 1: Fund Subscription Resumption - Nearly 20 equity funds, including both active and passive types, have announced the resumption of large-scale subscriptions since the beginning of the year [1][3]. - Notable fund announcements include Huashang Fund resuming large subscriptions for its Huashang New Trend Preferred Fund, which has a scale of approximately 12.91 billion yuan and a stock position of about 91.54% as of Q3 2023 [2]. - Other funds, such as Invesco Great Wall and Guolian Fund, have also lifted restrictions on large subscriptions, reflecting a trend of easing limits to attract external capital [3][4]. Group 2: Fund Issuance Market Recovery - The fund issuance market is showing signs of recovery, with equity funds dominating the new offerings, contrasting with the previous year's focus on bond funds [4]. - In January 2024, 111 new funds were scheduled for issuance, with nearly 40% being equity funds, including 44 equity-mixed and ordinary stock funds [4]. - The previous year saw 377 bond funds issued, totaling approximately 819.86 billion yuan, which accounted for over 70% of the issuance [4]. Group 3: Market Sentiment Improvement - The A-share market has seen a general rise, with major indices like the ChiNext Index increasing by nearly 2% and the Shenzhen Component Index and Northbound 50 Index rising over 1% [5]. - Analysts believe that the current A-share market valuation is at a historical low, with expectations of macroeconomic recovery and improving corporate earnings contributing to a potential rebound in market sentiment [5][6]. - Morgan Stanley Fund highlights that the current market offers high value due to low valuations, particularly favoring low-volatility dividend and technology growth sectors [6][7].