Private equity firms' March "treasure hunt" targets the electronics and pharmaceutical biotech industries

By our reporter, Chang Xiaoyu

The latest data from Private Placement Paimai Network show that in March, a total of 871 private fund institutions traveled between listed companies to conduct research, covering 343 stocks across 27 Shenwan primary-level industries. The total number of research sessions reached as many as 2,752 times. During this period, the “top-tier” private fund institutions with assets under management exceeding 100 billion yuan were especially prominent. In total, they completed 354 research sessions, with the two major sectors of electronic and biopharmaceuticals becoming key areas of focus.

In March, 91 listed companies received key attention from private fund institutions, all of which received no fewer than 10 research sessions. Among them, Mindray Medical, from the biopharmaceuticals industry, ranked first with 105 research sessions, drawing interest from 13 well-known private fund institutions at the 100-billion-yuan scale, including Shanghai High毅 Asset Management Partnership (Limited Partnership) (hereinafter “Gaoyi Asset”) and Dan Shuiquan (Beijing) Investment Management Co., Ltd. (hereinafter “Dan Shuiquan”). Also in the biopharmaceuticals industry, Haitai Medical was likewise highly favored, receiving 54 research sessions, as eight private fund institutions at the 100-billion-yuan scale carried out in-depth “fact-finding” on it.

In March, the electronics sector, benefiting from 592 research sessions involving 58 companies, firmly held the top spot on the hot track. In this sector, the appearances of four companies—Source Precision Technology, Shenzhen Innotek Circuit Co., Ltd., Transsion Holding, and Simco Shanghai—were frequent in the top ranks of the research lists of private fund institutions. They were researched 50 times, 48 times, 46 times, and 43 times, respectively. Among them, Source Precision Technology can be considered the electronics sector’s “crowd favorite,” attracting attention from well-known private fund institutions at the 100-billion-yuan scale, including Shanghai Zhongyang Investment Management Co., Ltd. (hereinafter “Zhongyang Investment”). The discussions focused on product progress in the company’s CPO/NPO (co-packaged optics / near-packaged optics) segment. Shenzhen Innotek Circuit drew a cluster of 12 private fund institutions at the 100-billion-yuan scale, including Dan Shuiquan and Gaoyi Asset, to visit in a concentrated manner; everyone was particularly concerned about the development of its PCB (printed circuit board) business. Transsion Holding received attention because it recently brought in Dr. Yudong Yu, an expert in the field of international voice and artificial intelligence, and was followed by private fund institutions at the 100-billion-yuan scale such as Shanghai Mingxuan Investment Management Co., Ltd.; research was carried out around the core work tasks of Dr. Yudong Yu. Simco Shanghai attracted attention from Shanghai Ningquan Asset Management Co., Ltd. and Shanghai Panjing Investment Management Center (Limited Partnership) (hereinafter “Panjing Investment”); the research mainly focused on the company’s expansion in overseas markets and its order outlook for 2026.

Among the listed companies that were frequently researched by private fund institutions, a number of “specialized, refined, distinctive, and innovative” enterprises also emerged. Data show that among the individual stocks researched by private fund institutions in March, 104 belonged to the specialized, refined, distinctive, and innovative concept segment, accounting for more than one-third.

In terms of institutions, in March there were 53 private fund institutions with research counts of no fewer than 10 times. Among them, Shenzhen Shangcheng Yipin Asset Management Co., Ltd. ranked first with 61 research sessions. In the stocks it researched, the largest number belonged to the biopharmaceuticals industry (8 stocks); next were the electronics and computer industries (7 stocks each). Guangdong Zhengyuan Private Fund Management Co., Ltd. (hereinafter “Zhengyuan Investment”) ranked second with 52 research sessions; its research focus was concentrated in the electronics sector, with 11 related stocks researched. Among private fund institutions at the 100-billion-yuan scale, Gaoyi Asset, Dan Shuiquan, and Panjing Investment entered the top ten by number of research sessions, and all showed a favorable view of the electronics and biopharmaceuticals sectors.

Private fund institutions that actively conducted research generally took an optimistic view of the market. Zhengyuan Investment’s fund manager Liao Maolin said to a reporter from The Securities Daily: “From late March to early April, the A-share market has demonstrated a relatively independent trend, indicating that the market’s sensitivity to disruptions from geopolitical conflicts is gradually being reduced. Looking ahead, the market will enter a gradual de-sensitization and repair phase. However, before disruptive factors have fully dissipated, market activity is highly likely to remain dominated by structural characteristics of shrinking volume with rotating themes, gradually brewing new main lines. It is recommended to pay attention to deterministic directions with clear industry trends and low linkage to geopolitical risks.”

“After the recent adjustment, the room for further upside in the A-share market is actually greater.” Tan Wei, fund manager of Zhongyang Investment, analyzed in an interview with a reporter from The Securities Daily that, judging by the key factors affecting the market, the logic of an “A-share slow bull market” has not been broken. On one hand, the trend of China’s economic transformation and upgrading remains solid. Although the instability in the Middle East in this round brings some impact on domestic raw material costs and export expectations, this impact is generally controllable. In the process, China’s stable and secure environment, as well as the resilience of its industrial chain, stand out even more across the global scope. On the other hand, under China’s low interest-rate environment, the attractiveness of adjusted stock assets to long-term capital has been further enhanced, and the trend of the entire society’s funds toward allocations to equity-type assets will not change.

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