Southern Fund's Zhang Yanmin: AI Does Not Yet Offer Mid-Term Cost-Effectiveness, Three Issues Deserve Attention
Zhang Yanmin of Southern Fund stated in the third-quarter report that the momentum consensus on AI has receded, and the current convergence is far from sufficient in both time and magnitude; AI does not yet offer mid-term cost-effectiveness. He also believes that AI has not changed the core constraint that innovative drugs ultimately require clinical validation, and that the market may overestimate its short-term financial contribution while underestimating its long-term impact on the way R&D is organized. On overseas expansion, companies that gain share merely by suppressing costs and expanding capacity face multiplied profit risks under trade barriers.
Topics
Body · AI translation
Main body of the article
Zhang Yanmin of Southern Asset Management said that in the third quarter, the A-share market underwent a relatively large correction, and industry performance further diverged: coal, petroleum and petrochemicals, agriculture, forestry, animal husbandry and fishery, banks, and pharmaceuticals and biologics were among the top gainers, while electronics, telecommunications, and building materials were among the top decliners. The technology growth sectors that had risen sharply earlier and had crowded trading saw the largest pullbacks, while cyclicals, dividend stocks, and pharmaceuticals became the few directions still posting clear positive returns. The Hang Seng Index and the Hang Seng China Enterprises Index rose by about 7.57% and 8.76%, respectively, while the Hang Seng Tech Index fell by about 4.88%.
The third-quarter report mainly discusses three issues: pharmaceuticals, overseas expansion, and artificial intelligence. On pharmaceuticals, AI has not changed the core constraint that innovative drugs ultimately require clinical validation; the market may be overestimating its short-term financial contribution while underestimating its long-term impact on the way R&D is organized.
On overseas expansion, for companies that gain share simply by suppressing costs and continuously expanding production capacity, profit risk multiplies when they face trade barriers; only companies with technology, brands, channels, and global operating capabilities can turn competitive advantages into revenue for sustainable growth.
On artificial intelligence, the momentum consensus around AI has receded, and this round of convergence is far from sufficient in either time or magnitude. Looking ahead, market uncertainty is increasing, and challenges persist.
(Source: Jiemian News) Middle of the main body Embedded advertisement