Hong Kong Concept Tracking | Hong Kong releases blueprint for the development of traditional Chinese medicine, pushing for high-level development in the industry with eight major goals (including concept stocks)

On December 18, the Hong Kong Special Administrative Region government officially released the "Blueprint for the Development of Traditional Chinese Medicine", which covers 5 areas, 8 goals, and 20 actions to promote the comprehensive, high-quality, and high-level development of traditional Chinese medicine in Hong Kong. China Securities Co., Ltd. pointed out in a previous research report that the short-term pressure on the Chinese medicine industry is expected to ease, channel inventory clearance is accelerating, and there are opportunities for improvement in demand at the end of the year, as well as for the improvement of fundamentals and valuations. Related stocks include: TRAD CHI MED (00570), TONGRENTANGCM (03613), GUSHENGTANG (02273), and Guangzhou Baiyunshan Pharmaceutical Holdings (00874). The eight major goals include optimizing excellent clinical services, establishing the position of traditional Chinese medicine services in the medical system, improving the quality and clinical efficacy of traditional Chinese medicine services, and upgrading traditional Chinese medicine services through technology. It also aims to establish a cross-disciplinary service system, deepen the collaboration mechanism for traditional Chinese medicine services across disciplines, integrate deeply into the medical system and collaborate across institutions, and strengthen the role of traditional Chinese medicine in primary healthcare. In addition, it aims to lead the development of traditional Chinese medicine, enhance the standards of traditional Chinese medicine profession, build a more comprehensive talent training system for traditional Chinese medicine, and empower the industry to continue promoting the development of the traditional Chinese medicine profession. Furthermore, it aims to enhance the quality of Chinese medicine, strengthen the management of Chinese medicine quality, and fully implement the Good Manufacturing Practices (GMP) for Chinese patent medicines. It also aims to assist in establishing international standards for Chinese medicine, including making good use of the government's Chinese medicine testing center to establish Chinese medicine standards, deepen cooperation with mainland and Greater Bay Area institutions through the government's Chinese medicine testing center, drive research and industrial innovation, promote innovation and development and clinical trials of Chinese medicine, and empower the industry to cultivate professionals in Chinese medicine. It also aims to promote traditional Chinese medicine culture, popularize knowledge of correct selection of traditional Chinese medicine for disease prevention and treatment, promote cross-border cooperation to enhance confidence in traditional Chinese medicine culture, support the international promotion of Hong Kong traditional Chinese medicine service models and international cooperation, promote international application of Chinese medicine standards and testing technology, and build an international hub for traditional Chinese medicine information exchange and innovation cooperation. The Director of the Department of Health of the Hong Kong Special Administrative Region government, Lu Chongmao, stated that the release of the first blueprint for the development of traditional Chinese medicine today aims to use traditional Chinese medicine to enable citizens to enjoy higher-quality and more comprehensive medical services, improve health levels, enjoy better services, and build Hong Kong as a bridgehead for traditional Chinese medicine to go global. In recent times, there have been constant major movements in the field of traditional Chinese medicine in Hong Kong. In early December of this year, the 7th Guangdong-Hong Kong-Macau Greater Bay Area Traditional Chinese Medicine Heritage Innovation and Development Conference was held for the first time in Hong Kong, with about 800 traditional Chinese medicine experts, scholars, health officials, and industry representatives from around the world attending the conference to discuss the future direction of global development of traditional medicine, traditional Chinese medicine clinical services, and research and development, as well as modernization research of traditional medicine and Chinese medicine standards. On December 11, Hong Kong's first traditional Chinese medicine hospital officially began operations. In its first year of operation, the hospital will mainly provide outpatient and day hospital services, and will comprehensively provide six major specialized services including internal medicine, surgery, gynecology, pediatrics, orthopedics, and acupuncture, as well as carry out 12 specialized projects including aging-related diseases and post-stroke rehabilitation. In September this year, the Hong Kong Chinese Medicine Hospital signed a cooperation agreement with three universities, namely, Hong Kong Baptist University, The Chinese University of Hong Kong, and The University of Hong Kong, and officially became the Chinese medicine teaching hospital of these three universities. China Securities Co., Ltd. pointed out in its research report that the short-term pressure on the Chinese medicine industry is expected to ease, channel inventory clearance is accelerating, and there are opportunities for improvement in demand at the end of the year, as well as for the improvement of fundamentals and valuations. Innovation in the field is helping to build a second growth curve. Traditional Chinese medicine consumer goods companies have vast expansion opportunities. Golden Bull Securities believes in grasping the two main themes of "exquisite + innovation" in the Chinese medicine sector. High-quality Chinese medicine has both medical value and consumer attributes, a clear brand effect, and targets high-net-worth clients with strong bargaining power. Innovative Chinese medicine is gradually entering a period of harvest under the support of favorable policies and positive external stimuli, and Chinese medicine improved new drugs, ancient classic formulas, and other innovative Chinese medicines are expected to accelerate development guided by clinical needs and achieve commercialization in volume. At the current juncture, Huachun Securities believes that the factors driving the Chinese medicine sector upwards far outweigh those pulling it down: based on a significantly optimized chip structure, sustained friendly policies, the near completion of channel inventory clearance, and a slowdown in pharmacy channel integration, the bank is bullish on the recovery market of the Chinese medicine industry in 2026, with the expected order of recovery in subsectors as follows: in-hospital Chinese medicine > Four kinds of drugs = OTC medicines > tonics and high-value consumer Chinese medicines. It recommends focusing on targets benefiting from policies and showing bottom-up performance. Related concept stocks: TRAD CHI MED (00570): a company mainly engaged in the manufacture and sale of Chinese medicine. The company integrates medical research, production, and distribution business, and focuses on product research and manufacturing in the areas of traditional Chinese medicine, modern Chinese medicine, sustained-release formulations, etc. TRAD CHI MED's mid-term performance in 2025 shows that the operating income was approximately RMB 7.46 billion, a year-on-year decrease of 11.0%. The gross profit was approximately RMB 3... TONGRENTANGCM (03613): Beijing Tongrentang is the oldest and most prestigious century-old brand in the TRAD CHI MED industry, with a history of over 350 years, owning products such as Angong Niuhuang Pill, Tongren Niuhuang Qingxin Pill, Tongren Da Huoluo Pill, Liuwei Dihuang Pill, Jinkui Shenqi Pill, and many classic medicines. It produces over 400 Chinese patent medicines throughout the year, covering cardiovascular, tonics, heat-clearing, gynecology, pediatrics, and other fields. GUSHENGTANG (02273): This year, GUSHENGTANG has continued to accelerate its overseas expansion in the field of traditional Chinese medicine and has adopted a three-drive strategy of "acquisition + cooperation + self-built" to actively expand into the Singapore market. On October 22, GUSHENGTANG reached a strategic cooperation with the comprehensive digital medical platform 1doc in Singapore, and jointly established a joint venture company. GUSHENGTANG holds 70% of the shares and is fully responsible for operations and management. The joint venture company will establish independent Chinese medicine treatment areas within the existing clinic network of 1doc, and jointly carry out Chinese medicine business. After the successful acquisition of Da Zhong Tang, GUSHENGTANG will add 14 outpatient clinics in operation, helping the company quickly build a large-scale service network in Singapore, enhance regional market coverage and operational synergies. Guangzhou Baiyunshan Pharmaceutical Holdings (00874): Engaged in medical services, traditional Chinese medicine health, modern...