Multiple Healthcare-Themed New Funds Cut Offering Periods to Capture Market Momentum
Several newly launched pharmaceutical funds have announced early closures of their subscription periods as China’s innovative drug sector experiences rapid valuation growth. This shift reflects asset managers’ growing emphasis on investor experience over initial fundraising size in the current market environment.
Accelerated Fund Launches
Notable early closures include:
- Eastern Alpha Health Industry Fund: Ended 3 days early on June 10 after just 4 trading days
- Ping An HK Connect Healthcare Innovation Fund: Moved deadline from June 25 to June 10
These decisions come as the Hang Seng Healthcare Index surged 10.45% in five trading sessions, with many institutional favorites in the sector gaining 20-30% during this period.
Changing Priorities in Fund Launches
From Size to Performance
Industry insiders highlight a paradigm shift in new fund strategies:
- Historical focus: Maximizing initial fundraising size
- Current priority: Protecting net asset value (NAV) and entry timing
“Maintaining the 1 yuan NAV safety line is now crucial,” explained a Guangzhou-based fund executive. “Poor timing can lead to significant early losses that damage brand reputation and future fundraising.”
Innovation Drug Sector Outlook
The “Three First Years” Thesis
- Ping An Core Advantage Fund manager Zhou Sicheng identifies 2025 as a watershed moment
- Revenue expansion year: 80% of listed innovators expected to enter growth phase
- Profitability breakthrough year: Collective transition to profitability begins
- Valuation re-rating year: Systemic investment opportunities emerging
Catalysts Ahead
Market participants anticipate:
- Major medical conferences (AACR, ASCO) providing data catalysts
- Continued BD (business development) activity
- Improved risk appetite driving liquidity into the sector
“No matter how you measure it, pharma valuations remain attractive relative to historical returns,” said Tang Chen, manager of Noah Select Value Fund. “What we’re seeing now is just the beginning of a new industry cycle.”
The sector’s transition from loss-making to profitability appears to be convincing fund managers to take more aggressive positions, even as they carefully manage entry timing to protect new investors.
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