HK Stock Market Move | HYGEIA HEALTH (06078) rose more than 7% in the afternoon session. The medical insurance fund will establish a prepaid system, which is expected to promote the recovery of the operation of its hospitals.

HYGEIA HEALTH (06078) surged more than 7% at the end of the trading day, rising by 7.1% to HK$18.4 by the time of drafting, with a turnover of HK$168 million. On the news front, the National Healthcare Security Administration and the Office of the Ministry of Finance recently issued a notice on improving the prepayment work of the medical insurance fund, requiring the unified and improved prepayment system of the basic medical insurance fund at the national level, standardizing procedures, strengthening management, and effectively increasing the efficiency of fund utilization. China Thai International pointed out that the establishment of the medical insurance prepayment system helps alleviate the financial pressure on private hospitals. The management of HYGEIA HEALTH stated that the hospitals in affluent areas with medical insurance funds such as Xi'an and Suzhou performed well in the third quarter, but hospitals in third- and fourth-tier cities like Heze are still affected by strict medical insurance cost controls, and we believe this situation is unlikely to change within the year. The bank noted that the government has begun to address the issue, and it is expected that the financial bottleneck caused by medical insurance cost controls will gradually ease, and the company's hospitals are also expected to gradually overcome this difficult period.