Core Viewpoint - The Chinese innovative drug market is not necessarily required to go overseas; instead, leading overseas pharmaceutical companies need innovative drug assets to supplement their pipelines [4][23]. Summary by Sections Market Performance and Trends - The mid-year reporting season used to be a pressure period for the innovative drug industry, but now, with more innovative drugs approved, the performance outlook is optimistic [5][6][22]. - Many core pipelines and innovative drug companies have achieved continuous year-on-year and quarter-on-quarter performance releases, with some leading companies turning losses into profits [7][22]. Pricing and Valuation - Current pricing for many companies has not yet reached a fully optimistic level, indicating significant room for recovery in early pipeline, overseas expansion, and competitive landscape pricing [8][21]. - The market sentiment towards innovative drugs has reversed compared to previous years, leading to a more favorable pricing model for early-stage pipelines [21]. Future Policy and Industry Catalysts - Future policies are likely to focus more on drug quality and clinical benefits rather than solely on price reductions, signaling a more moderate approach [10][20]. - The industry still has many catalysts and important milestones ahead, with significant developments expected in both domestic and global innovative drug fields [10][20]. Investment Strategy - The company emphasizes three main investment lines: selecting high-quality innovative assets, traditional companies undergoing transformation, and companies with strong performance and valuation [25][26]. - The innovative drug sector is expected to continue its growth trajectory, and the company remains optimistic about its long-term potential [10][25]. Market Dynamics - The innovative drug sector is experiencing a shift in market dynamics, with increasing interest and research focus leading to a more favorable environment for investment [21][27]. - The company believes that the innovative drug industry does not face significant potential downside risks, making it a worthwhile long-term investment [28].

Core Viewpoint - HSBC Jintrust Medical Pioneer Fund has experienced a significant turnaround, with a year-to-date increase of 68.03% in 2025, attributed to strategic adjustments and precise positioning by the new fund manager, Li Bokan [4][6][10]. Group 1: Fund Performance - The HSBC Jintrust Medical Pioneer Mixed Fund (code: 012358) ranked 23rd among all funds in the industry for its year-to-date performance, contrasting sharply with its performance from 2021 to 2024, which saw a decline of 52.15%, placing it 3438th out of 4326 similar funds [6][10]. - The fund's performance improved significantly after the appointment of Li Bokan, who took over from the previous manager, Wu Xiaowen, in late 2024 [8][10]. Group 2: Management Changes - Wu Xiaowen, the former fund manager, resigned for personal reasons, and her background in the pharmaceutical industry was considered weak compared to her successor [8][10]. - Li Bokan, the new fund manager, has a background as a pharmaceutical industry consultant and analyst, which is expected to enhance the fund's performance [10][14]. Group 3: Investment Strategy - Under Li Bokan's management, the fund has shifted its focus towards innovative drugs and has reduced its exposure to stocks negatively impacted by medical reform policies [10][14]. - The concentration of the top ten holdings in the fund decreased from 73% at the end of 2022 to 63.3% in Q1 2025, indicating a strategy to lower risk through diversification [10][14]. Group 4: Industry Context - The turnaround of the HSBC Jintrust Medical Pioneer Fund reflects the dynamic nature of the public fund industry, showcasing the importance of talent and strategic adjustments in achieving performance recovery [13][14]. - The success of the fund after a management change aligns with a broader trend in the industry where new leadership can revitalize fund performance [11][14].