Since the latter half of the year, the overall market index has scaled new heights, unprecedented in recent times. Within this landscape, the innovative drug sector has remained robust, particularly drawing attention to its performance in mainland China and Hong Kong stocks. Consequently, the net asset values of related funds have surged in tandem. Notably, four funds have doubled their net asset values this year alone. However, the most recent second-quarter fund reports reveal a notable trend: despite the stellar performance of some innovative drug-focused products, their shareholding has significantly declined in the second quarter. Fund managers attribute this to taking profits from highly congested stocks. Amidst rising overall valuations, fund managers underscore the importance of selecting stocks within the innovative drug sector based on both financial metrics and R&D considerations.