In the past two years, the medical industry has increased too much, and the performance of medical companies cannot afford high valuation;

Policy impacts such as medical reform and centralized procurement;

The trend of market investment has shifted to science and technology industries and pro-cyclical industries, which are mainly based on new energy and semiconductors;

Last year, affected by the epidemic, some medical companies increased significantly. As the epidemic eased, the performance of these companies declined, and investors' excitement about the medical industry decreased. Since the outbreak in early 2020, a large amount of hot money has poured into medical assets-funds are actually derivatives of the capital market. The net worth of many stock funds depends on the price of the stock. Stock price and real value are two concepts: stock price is largely based on market evaluation. In other words, suppose investors think that this company has a bright future, so they buy a lot of shares of this company, which eventually leads to the shortage of shares of this company, so the stock price rises sharply. But this kind of pre-judgment is wrong in many cases-it also leads to many stocks that are not worth the price after the skyrocketing, so they are thrown out one after another, which eventually leads to an avalanche of stock prices.

On the one hand, investors are chasing new energy and other industries, on the other hand, with the continuous decline of medical funds, the wait-and-see and worry mood deepens, which makes the funds withdraw from the medical track, which makes a' negative feedback' mechanism between investors and the medical track-the more they fall, the less they dare to buy, and the more they don't buy, the more they fall.

Many medical funds only have a few heavyweights, and their positions are relatively concentrated. As soon as there is any trouble in the market, it will fall collectively. The most critical factor is that the current market trend is not in medical care, investors are not in medical care, and the inflow of funds is not enough to prosper this industry.

Some experts said that the recent major adjustments in the domestic stock market have also had an impact on popular medical funds, reminding investors to pay attention to controlling their positions.

Some experts also said that the pharmaceutical industry is a highly prosperous industry. Competitive companies in the pharmaceutical industry can digest the valuation with high growth, and investing in medicine is to earn growth money. In the long run, medical funds still have high investment value, and investors should be patient.