As the world enters the late stage of the bull market, capital spillover becomes inevitable. Faced with this phenomenon, investors will be faced with two options, either invest in energy, **, etc. to hedge risks, or look for ** depressions on a global scale. And in the current context, China's ** undoubtedly shows great attraction.
The high valuation of the international ** and the advent of the interest rate cut cycle have provided the conditions for capital spillover, in contrast, the CSI 300 and the Hang Seng Index have P/E ratios of 10 times and 7 times respectively5 times, even if the valuation doubles, it is still low in the world**. This presents a huge opportunity for investors.
Looking back at the great bull market in the United States over the past decade, many technology stocks and pharmaceutical stocks have risen amazingly, such as Tesla, Nvidia, Microsoft, etc. Now, A-shares are standing on the eve of a new bull market cycle, and we as investors should seize the moment. In the next ten years, a number of large enterprises with an increase of more than 20 times are expected to emerge in the fields of medicine and science and technology.
Over the past three years, we have adopted a diversification strategy to avoid risks. However, with the gradual clearing of the market bubble, the market risk has been greatly reduced. As a result, we are now moving to concentrated investing, and while this may increase volatility, decisions made at key moments will determine future outcomes.
In the pharmaceutical sector, our portfolio of companies shows strong growth potential. These companies have historically grown at a compound net profit growth rate of 20% on average, and their current valuations are at their lowest levels since they went public. With the intensification of aging and the arrival of a new growth cycle in the pharmaceutical industry, we expect the performance of these companies to continue to maintain rapid growth. A doubling of valuations would result in a compound ten-year growth rate of up to 30%.
In addition, China has also shown strong strength in the field of new drug research and development, ranking second in the world. The low pricing of new drugs in China provides a good opportunity for overseas authorization. For investors, this means potential benefits from two-wheel drive.
In the Hong Kong market, undervalued varieties are more significant. Despite the timing of value fixes, overall, there is limited room for downward and unlimited room for up. Therefore, mining and daring to develop such high-quality pharmaceutical assets will be an important strategy for investors in the future.