Jingu Finance News | CICC released a research report, stating that the MSCI China Medical Index has cumulatively fallen by 17.6% since the beginning of the year, underperforming the MSCI China Index by 30.1%. Benefiting from overseas interest rate cuts and domestic macroeconomic improvements, the medical industry, as a high-elasticity sector, is expected to outperform the market. The new version of the medical insurance catalog has been released, with several heavy-duty domestic innovative drugs included. The bank expects the renewal variety price reduction to be relatively moderate, reflecting strong support from the medical insurance fund for innovative drugs. In September and October of this year, the balance of basic medical insurance (pooled fund) revenue and expenditure has significantly improved. With the policy focus shifting to stimulating the economy, the bank believes that the medical insurance fund's revenue and expenditure situation is expected to improve significantly. Medical insurance fund supervision is becoming stricter, and products that meet the characteristics of inpatient, essential needs, and medical insurance are expected to continue growing. The updated medical device policy is expected to accelerate implementation, driving the profit recovery of domestic medical device companies.

The sector expected to benefit from the improvement in medical insurance funds includes: 1) innovative drugs, which will receive more comprehensive medical insurance coverage; 2) medical service institutions, with improved accounts receivable and bad debt management; 3) commercial distribution, with improved accounts receivable and increased revenue growth rate; 4) medical devices, with improved bidding processes. Bullish on Beigene (06160), Innovent Bio (01801), Kangpu Biotech (06990), United Imaging Healthcare (688271), Wuxi Apptec (02359), Juzi Biotech (02367), and 3sbio (01530).