Core Insights - The innovative drug sector has become a focal point in the market, with significant performance in both A-share and Hong Kong markets since 2025, as evidenced by the substantial increases in relevant indices [1][2] Group 1: Market Performance - The Hang Seng Innovative Drug Index has risen by 107.34% as of September 30, 2025, significantly outperforming the Hang Seng Index, which increased by 33.88% during the same period [1] - The CSI Innovative Drug Industry Index has shown a growth of 38.75%, surpassing the CSI 300 Index's increase of 17.94% [1] Group 2: Investment Opportunities - The Chinese biopharmaceutical industry is experiencing a "DeepSeek" moment, driven by factors such as an aging population, a large pool of engineers, and abundant clinical resources, which create a strong comparative advantage [2] - The cost of new drug development in China is lower than in the U.S., attracting multinational companies to increase their R&D investments in China [2] - As of August 2024, China accounted for 36% of global innovative drug pipelines, excelling in cutting-edge fields like antibody-drug conjugates and bispecific antibodies [2] Group 3: Fund Management Strategy - The ICBC Health Industry Mixed Fund employs a dual fund manager mechanism, focusing on innovative drugs as a logical sub-sector within the pharmaceutical industry due to global breakthroughs in innovative drug R&D and supportive national policies [3] - The fund has increased its allocation to Hong Kong stocks, with the proportion of Hong Kong investments rising from 30.28% at the end of 2024 to 46.72% by the end of Q3 2025, aiming to capture the rebound in the Hong Kong innovative drug market [3] Group 4: Future Outlook - The fund managers remain optimistic about the innovative drug sector's performance in the second half of 2025, identifying four main investment themes: biotech companies with overseas potential, innovative drug leaders nearing profitability, major innovative drugs in the approval phase, and traditional pharmaceutical companies transitioning to innovative drugs [4] - In the innovative drug supply chain, three areas are highlighted for potential growth: CXO companies with overseas revenue, domestic CXO companies benefiting from local R&D recovery, and domestic upstream research companies capitalizing on multiple growth drivers [4]

Core Insights - Active equity funds have made a significant comeback in 2023, with notable performance metrics indicating a strong recovery in the market [1] - ICBC Credit Suisse Asset Management has several standout funds, particularly in the healthcare and new economy sectors, achieving returns exceeding 60% [2][3] Performance Metrics - The performance of various indices shows that the Wind Ordinary Stock Fund Index, Wind Equity Mixed Fund Index, and Wind Flexible Allocation Fund Index have growth rates of 35.15%, 35.37%, and 26.07% respectively, all outperforming the CSI 300 Index's growth of 17.94% [1] - The ICBC New Economy Mixed Fund achieved an impressive annual return of 104.57%, significantly surpassing its benchmark return of 24.74% [3] Fund Management - Key funds such as ICBC Medical Health Stock, ICBC Health Life Mixed, and ICBC Health Industry Mixed are managed by experienced fund managers, including Tan Donghan and Zhao Bei, who are integral to the ICBC Credit Suisse medical team [4] - The investment strategy of these funds is characterized by a systematic approach termed "short-term breakthroughs + long-term layouts," focusing on both immediate market opportunities and sustainable growth [6][8] Investment Strategy - The investment logic employed by ICBC Credit Suisse is not solely focused on short-term trends but aims for a comprehensive coverage of the pharmaceutical industry, enhancing risk diversification while ensuring consistent returns [7][8] - The funds utilize a "four-quadrant" allocation strategy, balancing investments in innovative companies with strong global competitiveness and traditional pharmaceutical leaders undergoing successful transformations [17] Market Trends - The Chinese innovative drug sector has entered a critical phase, with significant growth in research and development, positioning China as a major player in the global pharmaceutical market [20] - The market for innovative drugs has seen substantial gains, with the Hong Kong Stock Connect Innovative Drug Index rising by 107.68% and the CSI Innovative Drug Index increasing by 38.75% year-to-date [20] Future Outlook - Despite recent market adjustments, the outlook for innovative drugs remains positive, supported by potential high-value business development transactions and favorable domestic policies [23][31] - The ongoing advancements in domestic innovative drug capabilities are expected to align closely with global standards, presenting long-term investment opportunities in the pharmaceutical sector [25][33]