As the end of the year approaches, the A-share market in China continues to experience fluctuations and adjustmentsYet, the enthusiasm among institutional investors to take bullish positions is notably highA recent survey indicates that over 60% of these institutionally-backed traders hold a positive outlook for future market developments.

The latest research data reveals that these investors remain undeterred in their pursuit of opportunities, with a keen eye on over a hundred individual stocksWhen breaking down the attributes of the stocks they are interested in, two primary directions emerge.

Looking towards the end of 2024 and the beginning of 2025, the A-share market is expected to undergo persistent adjustmentsIn recent trading sessions, the Shanghai Composite Index has retreated approximately 6% over nearly six trading days, while the Shenzhen Component Index saw a drop exceeding 7% and the ChiNext Index fell around 10%. Analysts point out that these movements can largely be attributed to the market entering a brief "window of policy silence." The Central Economic Work Conference projected optimism for 2025, but many are questioning the specifics of these policy measures, leaving investors uncertain about their potential impact

Thus, patience is paramount as they await local meetings in January and February that will set the tone for national policies in March.

Moreover, market liquidity appears to be tightening as the Chinese Lunar New Year approachesOne industry expert notes that, following a surge in financing activities, the market is now witnessing a reduction in transaction volumes, leading to a withdrawal of incremental fundingBy the end of 2024, the market transaction volume stood at 12 trillion RMB, with early January 2025 maintaining daily amounts above the trillion threshold but falling short of 1.1 trillion RMB.

Despite overall market adjustments, institutional investors maintain their bullish enthusiasmAccording to a survey by Private Placement, private equity firms exhibit significant expectations regarding the A-share market's performance in 2025. Approximately 63.64% of these investors are optimistic, citing economic recovery and supportive policies as key drivers for potential market growth

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Additionally, 27.27% of respondents hold neutral views, recognizing the presence of optimistic elements while still acknowledging certain risksA smaller fraction, 9.09%, express caution, suggesting that while gains may be modest in the broader market, structural opportunities are more evident.

On the investment opportunities front, the survey results show that 53.85% of private equity firms favor the technology growth sectorThey believe that amidst the current economic restructuring and transformation, technology stands to gain significant new growth prospectsFollowing this, 30.77% lean towards policy-driven sectors, while 11.54% are interested in dividend yield assets, and 3.85% favor pro-cyclical investment strategiesNotably, specific sub-sectors identified include artificial intelligence (AI), the low-altitude economy, and robotics, along with pharmaceuticals.

Within the technology sector, a standout is the company "Yidian Tianxia," which has captured the attention of 138 institutional investors—a record for any listed company on that day

Yidian Tianxia specializes in international smart marketing services and acts as the first agent for AppLovin, a globally dominant mobile advertising platform in ChinaThe synergy with AppLovin has piqued investor interest, particularly since the two companies have collaborated since 2017. Yidian Tianxia aims to leverage this partnership to expand its business rapidly and mitigate competition with other agencies.

Analysts suggest that the leadership's directives to enhance technological innovation and drive industrial upgrades can yield fruitful advancementsWith China's modernization path emphasizing science and technology as the forefront, 2024 marks a year of increased policies supporting technology mergers and acquisitionsOn September 24, 2024, the China Securities Regulatory Commission issued policy guidelines encouraging cross-border mergers and supporting acquisitions in related sectors.

Beyond Yidian Tianxia, numerous other tech stocks have also garnered substantial interest from institutional investors

Companies involved in solid-state batteries, low-altitude economic activities, and humanoid robotics have become hot topics for investment in a landscape increasingly dominated by technology.

The pharmaceutical sector has emerged as a key focus area as well, drawing significant institutional attentionAmong the stocks related to the pharmaceutical biotechnology industry, 'Zhenbao Island' has attracted attention from 82 institutional investors, just trailing behind Yidian Tianxia.

The pharmaceutical sector is indeed a key focus for policy enhancementInitiatives are underway to reform regulatory processes comprehensively, aiming to build a unified national market for drugs and medical devices while developing a globally competitive innovation ecosystemThe overarching goal by 2027 is to greatly improve the review and approval efficiency of innovative drugs and medical devices, and by 2035, the industry aspires to strengthen its innovative capabilities and global competitiveness.

In recent actions, policy support has also been directed towards promoting commercial health insurance