XunfeiHealth (02506) included in the Hong Kong stock connect, starting a wave of revaluation of the "AI + healthcare" value.

On March 10, 2025, XUNFEIHEALTH (02506) was officially included in the Hong Kong Stock Connect list, a move that not only signals the market's recognition of its technological strength, but also heralds a wave of revaluation of "AI + healthcare" value. Looking at the secondary market, funds had already been positioning themselves before the announcement of the list. In the past two trading days, Xunfei Medical has risen by 8.96% and 5.87% respectively, with trading volumes exceeding HK$50 million over the two days, demonstrating the market's enthusiasm for the smart healthcare sector. As a subsidiary of Iflytek Co., Ltd., Xunfei Medical focuses on the application of artificial intelligence in the medical field. Recently, Iflytek Co., Ltd. announced the comprehensive upgrade of the X1 Starfire deep reasoning model. Xunfei Medical launched the Starfire Medical Large Model X1 based on the X1 Starfire, which outperforms GPT-4o and DeepSeek R1 in medical tasks such as diagnostic recommendations and health consultations, solidifying its technological breakthrough and industry moat. Additionally, Xunfei Medical, in collaboration with Huawei, released the Xunfei Starfire Medical Integrated Machine, which includes a new 4U training and inference integrated machine and a 2U inference integrated machine. With full-stack domestic support from computing power, models, training, inference to applications, the machine enables rapid deployment and out-of-the-box usability, ensuring data security and staying within the domain. The machine is equipped with the Starfire Medical Large Model X1 to provide 20 medical professional intelligent bodies including automatic generation of medical records, medical record content quality control, intelligent follow-up, report interpretation, etc. The built-in large model professional tool chain allows efficient learning of private medical records, test reports, and other professional data to help medical institutions and regions quickly create their own exclusive large models and innovative applications. Recently, the National Health Commission proposed to further strengthen the information technology capabilities at the grassroots level and significantly utilize artificial intelligence assistant technologies to enhance the service capacity and level of grassroots facilities. In fact, since its inception, Xunfei Medical has been focusing on grassroots medical services and gradually expanding its smart healthcare territory, achieving significant advancements in areas such as hospital services, patient services, and regional management platform solutions. Its products have covered over 60,000 grassroots medical institutions, serving over 500 tertiary hospitals, and its revenue scale in mainland China's medical AI industry ranked first in 2023. These achievements further consolidate the company's leading position in the industry. Deutsche Bank, Goldman Sachs, and other international institutions have voiced their views, believing that China's competitiveness in the AI field will reshape the global industrial chain, and the "valuation discount" of Chinese stocks is expected to gradually disappear. This rapid development of AI technology in China has led to a revaluation of Chinese assets and also had a positive impact on the Hong Kong stock market. Benefiting from the active promotion of AI in pharmaceuticals and medical innovation research and development, the corresponding sectors on the Hong Kong stock market have seen significant growth. In February 2025, the Hong Kong Biopharmaceuticals Index increased by 15.99%, and the Smart Healthcare Index had risen by 32.15% as of February 19th, with a growth rate of 72.73% in the past six months. Since its listing on the Hong Kong stock market in December 2024, Xunfei Medical has attracted significant market attention. In February 2025, with the overall strength of the AI sector, its stock price rose again, reaching a high of HK$160, nearly doubling since the end of February, with a market capitalization of approximately HK$16.07 billion. Looking at the flow of funds, international capital's enthusiasm for investing in Chinese technology stocks has significantly increased. For investors, Xunfei Medical's core value lies in its technological barriers and industry positioning advantages: it holds the first market share in the field of medical AI, especially its Intelligent Medical Assistant which holds a market share of 61.5% in the grassroots CDSS market in 2023, forming strong customer stickiness. Recently, CMSC released a research report stating that under the trend of "equal rights" in promoting large inference models, with years of deep cultivation in the Chinese medical industry and product synergies in the three terminals, Xunfei Medical is expected to maintain long-term competitiveness in the medical AI field. In fact, in the past two years, Southbound funds have become an important source of incremental funds for the Hong Kong stock market. According to statistics, in 2023, Southbound funds' average daily turnover in the Hong Kong stock market exceeded 18% for the first time, reaching 23.5% in 2024, and in the first quarter of 2025, it reached a record high of 26.8%. For XUNFEIHEALTH, being included in the Hong Kong stock market will greatly enhance the liquidity of its stock. As Southbound funds deepen their integration with AI technology, Xunfei Medical has the opportunity to replicate the growth path of Tesla, becoming the core infrastructure of the smart healthcare era, with its valuation expected to be further optimized.