HK Stock Market Move | HYGEIA HEALTH (06078) rose more than 20% in early trading. The implementation of the medical insurance prepayment system is expected to relieve the financial pressure on medical institutions.

HYGEIA HEALTH (06078) rose more than 20% in the morning session, and as of the time of writing, it had risen by 18.38% to 21.45 Hong Kong dollars, with a turnover of 321 million Hong Kong dollars. On the news front, on November 11th, the Office of the National Medical Insurance Administration and the Office of the Ministry of Finance issued a notice on the prepayment of medical insurance funds. The notice pointed out that it supports certain regions to further improve the management measures for prepayment funds, and helps designated medical institutions alleviate the pressure of medical expense advance payment through prepayment of part of the medical insurance fund. It specifically emphasized that medical insurance prepayment funds are revolving funds set up to help designated medical institutions alleviate the pressure of medical expense advance payment, improve medical service capabilities, enhance the sense of access to medical treatment for insured persons, and are used for turnover expenses such as drug and medical consumables procurement, and may not be used for non-medical expenses such as investment in institutional infrastructure, daily operations, or debt repayment. Guotou Securities believes that after the establishment of the medical insurance prepayment fund system, it is expected to further strengthen the collection efforts of medical institutions towards pharmaceutical companies, which is a long-term positive for pharmaceutical distribution companies. EB SECURITIES stated that after the implementation of the medical insurance prepayment system, it is expected to effectively alleviate the financial pressure of medical institutions in the corresponding regions, thereby improving their enterprise account conditions for purchasing drugs and consumables, which is beneficial for the overall development of the cash flow chain among medical institutions, pharmaceutical distribution, and pharmaceutical manufacturing.