HK Stock Market Move | GUSHENGTANG (02273) opens more than 4% higher. Institutions believe the company is likely to form a virtuous cycle in a compliant medical environment.

GUSHENGTANG (02273) opened over 4% higher, rising 4.51% to 32.45 Hong Kong dollars at the time of publication, with a trading volume of 473,800 Hong Kong dollars. Huaan released a research report stating that GUSHENGTANG has entered into a strategic partnership with Shandong University of Traditional Chinese Medicine. In the future, both parties will leverage their respective strengths to engage in deep cooperation in various fields, driving the traditional Chinese medicine industry to new heights. The company is a leading brand in the field of traditional Chinese medical services, with its business expanding continuously. It is optimistic about the company's influence in the field of traditional Chinese medical diagnosis and treatment and its future growth momentum. The bank continued to point out that on September 23, 2024, the National Medical Insurance Administration, in collaboration with the Jiangsu Provincial Medical Insurance Administration, conducted a comprehensive inspection of over 100 designated medical institutions and pharmacies in the entire Wuxi area. On October 8th, the National Medical Insurance Administration reported on the inspection of Hongqiao Hospital in Wuxi, Jiangsu Province. With stricter medical insurance management, there will be varying degrees of rectification, punishment, and closure of non-compliant stores. The bank believes that in a compliant medical environment, patients will choose large-scale chain medical service groups with high brand recognition, quality services, strict management, and reasonable fees. The company is expected to attract more patients for treatment and more high-quality doctors to join, forming a virtuous cycle.