As the Chinese A-share market experiences a gradual resurgence and investor confidence continues to bolster, there has been a noticeable uptick in the research activities conducted by public mutual fundsThis is especially pronounced in high-growth sectors, where the fervor surrounding public mutual fund investigations is reaching unprecedented levels.

According to data from a public fund ranking website, during the week of February 17 to February 23, 2025, a total of 150 public mutual funds participated in A-share company research, spanning 164 firms across 26 first-level industries defined by ShenwanThe total number of research engagements reached 1,072, a significant 23.93% increase from the previous week's total of 865.

When delving deeper, it is evident that the computer industry, among other high-growth tracks, has captured the attention of public mutual fundsLast week, out of the top ten A-share companies that received the most research activity from public funds, half belonged to the computer sector, namely Suochen Technology, Capital Online, Yuxin Technology, Jingbei Fang, and Dianke DigitalMoreover, the machinery equipment sector featured prominently with firms like Changsheng Bearing, Bozhong Precision, and Huarui Precision making the listThese insights highlight a clear trend among public funds to focus their research on the lines of technological innovation and industrial upgrades, demonstrating a strategic interest in high-growth industries amidst the backdrop of a transforming economic structure.

The research activity concentrating on high-growth sectors has seen a lead from the computer, machinery equipment, and pharmaceutical biotechnology industriesData points out that last week there were 24 Shenwan first-level industries that received at least two rounds of research engagements; five industries were researched between two to nine times; nine industries saw inquiries between ten to twenty-nine times; seven fields had thirty to ninety-nine engagements; while three industries experienced over a hundred research interactions

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Specifically, the computer, machinery equipment, and pharmaceutical biotech sectors stood out, each receiving over 100 research instancesTo illustrate, twenty A-share companies within the computer sector received 221 engagement sessions, while nineteen firms from the machinery equipment sector amassed 151 sessions, and fifteen pharmaceutical biotech companies received 136 inquiries.

Industry analysts have pointed out the reasons behind the computer industry's appeal: it is positioned at the heart of the digital economyThe burgeoning fields of artificial intelligence and cloud computing have benefited significantly from favorable policy support and the ongoing trend toward industry digitization, making it the preferred choice for public fund researchThe machinery equipment sector is thriving due to the logic of manufacturing upgrades and domestic replacements, particularly in high-end equipment and smart manufacturingMeanwhile, the pharmaceutical biotechnology sector continues to attract institutional interest thanks to the high growth potential in niche segments such as innovative drugs and medical devices.

Looking ahead, market observers from Star Stone Investment have offered insights suggesting that while the market sentiment and risk appetite are currently high, leading to somewhat crowded trading conditions in technology assets, this could potentially escalate market volatility as profit-taking and increased positions by off-the-floor funds interactNevertheless, there is an increasing optimism emerging from both informational and policy perspectives, with indications that the A-share market might be entering a new cycleOn one hand, national policy support for the tech sector presents a favorable backdrop for growth momentum, while there is a buildup of positive factors reinforcing sentiments towards the technology segmentOn the other hand, as March approaches, expectations surrounding policies aimed at stabilizing growth and promoting technology are gaining traction, thereby boosting the overall sentiment in the stock market.