In the past six months, the pharmaceutical industry has nearly tripled its growth in the large-cap Nuggets themed funds

The pharmaceutical industry has nearly tripled in the past six months. The Citic Pharma index rose 20.51 per cent in the six months to September 9, while the Shanghai Composite index rose just 7.56 per cent over the same period. Pharmaceutical theme funds in the industry index led by the performance is also quite eye-catching, the average rise of 16.49 percent in recent June, a joint staged a wave of "drug market." Looking back at historical data, it is not difficult to see that the phenomenon of medical indices overtaking the broader market is not an occasional phenomenon. Since the beginning of 2006, the Shanghai index has risen about 165 per cent, while the pharmaceutical index has grown nearly 11 times, well above the average for other sectors.
statistics, as of the time of writing, the market set up a total of 48 medical and medical theme funds. Of these, nearly 70 percent have been in the market since 2014, and Central European Health care is in the process of being raised. In terms of the size of the fund, the total size of the pharmaceutical theme fund reached 61.247 billion yuan. Among them, Huitian Fu medical services scale of more than 17.1 billion yuan, in addition to Thailand's political and medical health and Huitian Fu medical and health care scale are also more than 4 billion yuan, the hotness of the medical theme fund market can be seen.
from the performance point of view, the establishment of the earliest medical theme fund is Changxin healthcare industry, founded on March 26, 2010, the cumulative yield reached 60.41 percent, the CSI 300 index rose only 2.75 percent over the same period. At present, 32 fund companies have been involved in the pharmaceutical-themed army. Of these, four were set up, the largest number, three were set up by the Guangfa Fund and the Penghua Fund, and only two or one were set up by the remaining fund companies. Depending on the investment strategy, it can be roughly divided into 20 passive index and 28 active stocks or hybrids, both of which have achieved average returns of more than 16% over the past six months, a small gap. The top players in the sector were China Investment UBS Healthcare, China Merchants Healthcare and Baoying Healthcare, up 33.01 per cent, 27.09 per cent and 24.22 per cent respectively in the last six months, while the underperformance so far this year has been in the healthcare sector and Eda Healthcare, both down more than 20 per cent.
with the rapid development of China's economy, the medical and health market has entered a high-speed development stage, and residents' attention to medical and health care is increasing day by day. Since this year, from the beginning of January haemophilia Baidu paste bar was sold, to May, "Yutian department" hospital's informal operation was exposed, repeatedly attracted the public's attention, triggered a social debate. As early as 2013, the State Council proposed that the total size of the medical and health care industry will exceed 8 trillion yuan by 2020, according to which the agency estimates that the compound growth rate of domestic medical care will reach about 20% per year from 2014 to 2020.
china's total health care expenditure as a proportion of GDP and developed countries still have nearly double the gap, there is more room for improvement. Guangfa Fund believes that with the gradual implementation of the 13th Five-Year Plan, the medical device and medical services industry has great growth potential, medical-related stocks have long-term benefits.
Henyep Securities believes that although the pharmaceutical sector revenue and profit growth rate is not the highest of all industries, but in the context of the gradual macroeconomic slowdown, its sustainable and rapid growth still has a certain scarcity, coupled with the performance differentiation between listed companies in the pharmaceutical industry, so that pharmaceutical and medical with structural investment opportunities. Therefore, in 2016 the pharmaceutical sector in various industries will maintain the ranking of the upstream level, it is recommended that stock investors continue to over-match the pharmaceutical sector.
the first half of this year, the profit growth rate of listed companies in the pharmaceutical and biological sector was 17.8%, showing better performance growth. Zhongtai Securities said in the research report, the current valuation of the pharmaceutical sector is higher than the historical average, and the current pharmaceutical industry is in a period of change, related policies and implementation of greater uncertainty, so the sector valuation may be subject to more pressure, mining the value of the pharmaceutical industry's outstanding individual stocks will be more appropriate.
Before the domestic capital looseness is relatively stable, in the fundamental impact is not big, similar to the first half of last year the stock index all-round rally in the market is difficult to appear, and in the process of bottoming out, the market will continue to emerge the theme of the plate rotation brought about by structural opportunities. The pharmaceutical and medical industry itself has significantly different segments, involving more than 200 individual stocks, and there is no shortage of high-performing stocks every year. Due to professional, information, time and other factors, individual investors through the theme fund to share the long-term returns from industrial development is usually more convenient and reliable. Taken together, Hua'an China Securities Subdivision Pharmaceutical ETF Link, Southern Pharmaceutical Health Care and Castrol Healthcare are more prominent funds, and investors are advised to configure them according to their risk appetite as appropriate. (China Finance Network)