Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: Shi Qian. Will this be the arrival of the "real wolf"? The consumption tax rumors suddenly spread in various investment groups yesterday after the close of trading. There are reports that a trillion-level consumption tax reform will be approaching, and luxury goods and high-end services may be the first to test. As of the close of trading this morning, consumer stocks suddenly rebounded collectively, and retail and duty-free areas led the rise. Among them,

On November 11th, the National Healthcare Security Administration Office and the Office of the Ministry of Finance issued a notice regarding the prepayment work of the medical insurance fund, supporting eligible regions to further improve the management measures for prepayment, helping designated medical institutions alleviate the pressure of upfront medical expenses by prepaying a portion of the healthcare fund, and motivating designated medical institutions to better provide medical security services for insured individuals.

In this regard, analysts believe that for medical institutions, prepayment of the healthcare fund helps optimize and improve the daily operation cash flow and financial pressure, reducing potential receivables and bad debt risks caused by unpaid healthcare expenses. For medical insurance, it enhances the efficiency of healthcare settlement, encouraging medical institutions to be more proactive in diagnosis and treatment.

In early trading today, A-share pharmaceutical stocks set off a wave of trading limits, with nearly 20 stocks such as Guangzheng Eye Hospital Group, Wanbangde Pharmaceutical Holdings Group, and Shandong Lukang Pharmaceutical hitting the limit up, while Hong Kong stocks...$HYGEIA HEALTH (06078.HK)$The maximum surged by 22%.$WUXI APPTEC (02359.HK)$Once surged over 6%, in addition,$SIHUAN PHARM (00460.HK)$rose more than 4%,$ASYMCHEM (06821.HK)$、$SHANDONG XINHUA (00719.HK)$rose by more than 3%,$GRAND PHARMA (00512.HK)$、$INNOVENT BIO (01801.HK)$、$Hutchmed (China) (HCM.US)$Waiting for a rise of more than 2%.

Bullish news is coming.

As a once glorious industry, the pharmaceutical sector, a branch of high technology, has recently lagged behind compared to high-tech sectors such as chips and software.$GF CSI Innovative Drugs Industry ETF (515120.SH)$But at this time, there is a bullish development. According to the National Healthcare Security Administration website, the National Healthcare Security Administration Office and the Office of the Ministry of Finance issued a notice regarding the preparation of healthcare fund prepayment. The notice states that healthcare departments in various regions will establish relevant prepaid fund systems based on the balance of basic medical insurance funds. In principle, if the accumulated balance of the employee medical insurance pooling fund in the region is not less than 12 months, employee medical insurance pooling fund prepayment can be implemented; if the accumulated balance of the resident medical insurance fund is not less than 6 months, resident medical insurance fund prepayment can be implemented. Regions that incurred a deficit last year or are projected to have a deficit this year based on a 12-month rolling calculation cannot make prepayments.$Hang Seng Healthcare Index (800804.HK)$As a once glorious industry, the pharmaceutical sector, a branch of high technology, has recently lagged behind compared to high-tech sectors such as chips and software.$Hang Seng Index (800000.HK)$The price of the Yinhua CSI Innovative Drugs Industry ETF (515120.SH) is still below 50% of its peak. In addition, in October, it fell by 11.47% and underperformed by 8.61 percentage points, with sub-sectors recording declines of 5.0% to 19.4%. The main reasons are two-fold: the clear defensive nature of pharmaceuticals and insufficient event-driven catalysts.

But at this time, there is a bullish development. According to the National Healthcare Security Administration website, the National Healthcare Security Administration Office and the Office of the Ministry of Finance issued a notice regarding the preparation of healthcare fund prepayment. The notice states that healthcare departments in various regions will establish relevant prepaid fund systems based on the balance of basic medical insurance funds. In principle, if the accumulated balance of the employee medical insurance pooling fund in the region is not less than 12 months, employee medical insurance pooling fund prepayment can be implemented; if the accumulated balance of the resident medical insurance fund is not less than 6 months, resident medical insurance fund prepayment can be implemented. Regions that incurred a deficit last year or are projected to have a deficit this year based on a 12-month rolling calculation cannot make prepayments.

In terms of industry, the pharmaceutical and medical sector has been a continuous focal point recently. From November 14th to 15th, the 11th CBIC Cell Biotech Industry Conference and the 9th China Biomedical Innovation Cooperation Conference, jointly organized by the China Anti-Aging Promotion Association and Zhenghe Exhibition Group, will debut in Peking, while the SBIC 2024 Synthetic Biology Industry Conference will be held concurrently. In addition, the CIPM Synthetic Biology and Biomanufacturing Industry Development Conference will take place in Xiamen on November 17th to 18th. The 2nd Brain-Computer Interface Conference and the 4th Plenary Session of the Brain-Computer Interface Industry Alliance will be held in hubei wuhan on November 16th to 17th, focusing on the use of brain-computer interfaces in treatment.

Tianfeng Securities believes that for medical institutions, prepayment of medical insurance funds helps optimize and improve the daily cash flow and financial pressure of medical institutions, reducing the potential receivables and bad debt risks caused by unpaid medical insurance payables. For medical insurance, it enhances the settlement efficiency of medical insurance and encourages the proactive diagnosis and treatment of medical institutions. Medical insurance designated medical service institutions in relatively affluent medical insurance areas are expected to benefit.

Interpretation provided by the medical insurance bureau

According to the interpretation provided by the medical insurance bureau, the 'Notice' regards the prepayment of medical insurance funds as one of the incremental policies of medical insurance, unifying and improving the basic medical insurance fund prepayment system at the national level, standardizing processes, strengthening management, and effectively improving the efficiency of fund utilization. Persisting in treating 'prepaid funds' as 'empowering funds' enables designated medical institutions to alleviate the pressure of advance payment of medical expenses, effectively empowering and supporting the sustainable development of designated medical institutions, thereby providing better medical security for insured masses, promoting stable operation of pharmaceutical and consumable enterprises, collectively facilitating the coordinated development and governance of the 'three medicines,' better serving the macroeconomic development situation, and contributing to the stable operation of society.

The "Notice" clarifies the standardized requirements from the aspects of policy and system arrangements, application process, accounting, and supervision, mainly reflecting the "three clarifications" and "three specifications".

"Three determinations" refers to:

First, clarify the policy connotation. Prepayment is the revolving fund for medical expenses such as drug and medical consumables procurement advanced by the medical insurance department to designated medical institutions, and shall not be used for non-medical expense expenditures such as medical institution infrastructure investment, daily operations, debt repayment, etc. Drug and medical consumables centralized procurement for medical insurance fund special prepayment shall be implemented as originally stipulated.

Second, clarify the payment conditions. The safety of the fund is the basic premise for implementing prepayment work, and the principle of doing one's best and acting within one's capabilities should be adhered to. In principle, the conditions and standards for disbursing prepayments should be based on the cumulative balance of the overall medical insurance fund in the pooling area and the operational risk level of the medical insurance fund.

Third, it clarifies expenditure standards. The principle of the confirmed standard is based on the monthly average expenditure of the relevant medical insurance fund from the previous 1 to 3 years, reasonably determining the basic scale of prepayment funds, with the prepayment scale should be around 1 month.

"Three standardized regulations" refer to:

The first is to standardize process management. Eligible designated medical institutions voluntarily apply for advance funds to the local medical insurance department in early January of each year. After the medical insurance department reviews, the finance department determines the scope and scale of advance medical institutions. In principle, advance funds are allocated to designated medical institutions before the end of the first quarter of each year as required. Advance funds are determined on an annual basis, and by the end of the year, the medical insurance department should reconcile and settle with designated medical institutions. The advance funds are recovered by returning expenditures or offsetting settlement amounts.

The second is to standardize accounting. The medical insurance department and designated medical institutions should regularly reconcile the medical insurance advance funds. The medical insurance department should handle the accounting for advance fund allocation, liquidation, and write-off. In addition to meeting accounting requirements, designated medical institutions should also establish separate ledger management, strictly control fund utilization approval, and expenditure procedures, and strictly prohibit lending or diversion.

The third is to standardize fund supervision. The medical insurance department should include medical insurance advance funds in service agreements and specify relevant terms. At the same time, clarify the conditions under which the medical insurance department can recover advance funds. For unrecoverable funds, stop allocating medical insurance settlement expenses to designated medical institutions and initiate legal proceedings to ensure the security of medical insurance funds.

Editor/rice