HK Stock Market Move | Medical device stocks rise, medical insurance prepayments are expected to accelerate enterprise receipts, and innovative devices will usher in new growth opportunities.

Most medical device stocks rose, as of the deadline, MICROPORT (00853) rose 5.01% to 6.92 Hong Kong dollars; Shanghai Pharmaceuticals Holding (02607) rose 4.05% to 13.36 Hong Kong dollars; SINOPHARM(01099) rose 3.14% to 21.35 Hong Kong dollars; MEDBOT-B(02252) rose 2.64% to 10.1 Hong Kong dollars; Beijing Chunlizhengda Medical Instruments (01858) rose 1.31% to 8.52 Hong Kong dollars. On the news front, on November 11, the National Medical Insurance Bureau and the Ministry of Finance Office issued the "Notice on Improving the Prepayment of Medical Insurance Funds". The notice emphasizes that medical insurance prepayment funds are used to help designated medical institutions relieve the pressure of medical expenses, improve medical service capabilities, enhance the sense of access to medical treatment for insured persons, and are used as revolving funds for medical expenses such as drug and medical consumable procurement. It cannot be used for non-medical expenses such as medical institution infrastructure investment, daily operations, and debt repayment. The centralized procurement of drugs and medical consumables with medical insurance fund special prepayment shall be implemented as originally stipulated. EB SECURITIES believes that recent medical insurance policies have been frequent, which reflects that China's medical reform has entered deep waters, touching on the deep structure of the payment system, and the past interests and social structure within hospitals will be reshaped. The gradual advancement of the prepayment system is expected to improve the overall account period of the industry chain, with distribution companies benefiting more directly. It is recommended to pay attention to SINOPHARM (H), Shanghai Pharmaceuticals Holding, CHINARES PHARMA, etc.; the establishment of a diversified payment structure will open up new space for innovative drugs and medical devices.