Amid market volatility, investors’ risk appetite has weakened, and innovative drug stocks have undergone a significant correction. But what’s interesting is that many mutual fund managers and foreign institutions have been actively investing southbound, continuing to build positions in leading innovative drug companies. Several fund managers stressed in their third-quarter reports that the coming years will be a crucial period for clinical data readouts, overseas licensing deals, and the realization of commercial value in China’s innovative drug sector. Their countertrend investments suggest they remain confident in the sector.