BEIJING, Aug. 11 (Xinhua) -- China's medical exchange-traded funds (ETFs) shares rebounded recently on buying favor of investors despite their overall slack performance, reported Xinhua Finance Wednesday.
Since July, medical stocks tumbled significantly, sending yields of medical ETFs down notably.
By August 10, more than 90 percent of medical ETFs have reported negative yields and 21 of them even saw their net value down over 20 percent from the start of this year.
However, investors showed increasing enthusiasm towards medical ETFs. For instance, shares of an ETF tracking the CSI 300 Health Care Index of E Fund Management Co., Ltd. boomed since July and grew by 3.541 billion.
What's more, the market capitalization (market cap) of medical and biological stocks held by publicly-offered funds declined to account for 9.4 percent of their total positions by the end of June, the lowest level since the third quarter of 2011 and pointing to slight pressures for further selloff.
Some market players believed that the cost-performance ratio of medical stocks has been gradually improved and investors are suggested seeking potential investment opportunities in the medical ETFs.
Analysts with HuaAn Fund Management Co., Ltd. held that business climate of the entire medical industry remains upbeat for a while in terms of profitability and growth potential and valuation of medical stocks is approaching the historical lows, which gives rise to their investment value.
Drastic price falls of medical stocks in a short time drove market watchers into extreme pessimism towards the prospects of the medical industry, but for institutional investors, they should be more rational in considering influences of the changes in the industry and market, according to Yongjin Investment.
With many segments, medical industry boasts clear and sound demands and there are also sufficient medical enterprises of good quality. As the valuation of medical industry has tended to be reasonable, investors do not need to be too pessimistic about the future of the medical industry, reckoned analysts with Yongjin Investment. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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