HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The increasing expenditure for pandemic prevention and quarantine adds further pressure on the medical insurance fund. So, the NHSA will have more incentive to reduce payment standard.</li>
<li>We analyzed our interpretation on the new policies/bidding rules/impact on companies of 2022 NRDL adjustment, which would be very intense as more high-priced drugs voluntarily reduce prices to enter NRDL.</li>
<li>This year's NRDL negotiations will take place between September and October. The results will be announced in November.Investors can pay attention to relevant time nodes and get prepared in advance.</li>
</ul>


The increasing expenditure for pandemic prevention and quarantine adds further pressure on the medical insurance fund. So, the NHSA will have more incentive to reduce payment standard.
We analyzed our interpretation on the new policies/bidding rules/impact on companies of 2022 NRDL adjustment, which would be very intense as more high-priced drugs voluntarily reduce prices to enter NRDL.
This year's NRDL negotiations will take place between September and October. The results will be announced in November.Investors can pay attention to relevant time nodes and get prepared in advance.


Policy Interpretation of 2022 National Medical Insurance (NRDL) Negotiation

<ul>
<li>Four departments jointly issued “opinions” emphasis on the training/construction of TCM talents, which has great significance of TCM development in China. We advise investors not to underestimate this policy.</li>
<li>The COVID-19, policy risks (VBP/centralized procurement/DRGs) and public hospitals expansion have significantly intensified private hospitals' pressure for survival, which will eventually be reflected in the financial statements.</li>
<li>The deal between <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK) </a>and F-star Therapeutics with aggregate consideration of approximately US$161 million indicated that the industry clearing of biotech in China is far from completed.</li>
</ul>


Four departments jointly issued “opinions” emphasis on the training/construction of TCM talents, which has great significance of TCM development in China. We advise investors not to underestimate this policy.
The COVID-19, policy risks (VBP/centralized procurement/DRGs) and public hospitals expansion have significantly intensified private hospitals' pressure for survival, which will eventually be reflected in the financial statements.
The deal between Sino Biopharmaceutical (1177 HK) and F-star Therapeutics with aggregate consideration of approximately US$161 million indicated that the industry clearing of biotech in China is far from completed.


China Healthcare Weekly (July.1)- TCM New Policy, Private Hospitals Survival Pressure, Sino Biopharm

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Hong Kong equities extended their advance, although recent momentum showed signs of levelling off after a strong start to the week.</li>
<li>Strong gains across several Materials stocks helped distinguish the sector from the broader market advance.</li>
<li>Tencent’s sharp decline generated exceptionally heavy option activity and drove the increase in Communication Services sector volumes.</li>
</ul>


Hong Kong equities extended their advance, although recent momentum showed signs of levelling off after a strong start to the week.
Strong gains across several Materials stocks helped distinguish the sector from the broader market advance.
Tencent’s sharp decline generated exceptionally heavy option activity and drove the increase in Communication Services sector volumes.


Hong Kong Single Stock Options Weekly July 20–24: Tencent Drives Option Activity, Materials Surge

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jul 17th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Hua Hong Semi, Knowledge Atlas, Ntes, China Resources Land, Weichai Power, CCB, China Life, Minimax.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jul 17th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Hua Hong Semi, Knowledge Atlas, Ntes, China Resources Land, Weichai Power, CCB, China Life, Minimax.


HK Short Interest Weekly: Hua Hong Semi, Knowledge Atlas, Ntes, China Resources Land, Weichai Power

<ul>
<li>The NDRC issued the “14th Five-Year Plan For Bioeconomy”. This marks bio-economy has become a new economic form. With diversified resources and capital, a trillion-level market would develop rapidly.</li>
<li>The third centralized procurement in Fujian Province officially opened, involving five medical consumables. The bidding rule is milder than drugs VBP. Investors could pay more attention to medical device sector.</li>
<li>Akeso's 2021 PD-1 sales enlightened us that innovative drugs could still achieve good sales performance even without entering NRDL. So, companies could choose to give up NRDL negotiation strategically.</li>
</ul>


The NDRC issued the “14th Five-Year Plan For Bioeconomy”. This marks bio-economy has become a new economic form. With diversified resources and capital, a trillion-level market would develop rapidly.
The third centralized procurement in Fujian Province officially opened, involving five medical consumables. The bidding rule is milder than drugs VBP. Investors could pay more attention to medical device sector.
Akeso's 2021 PD-1 sales enlightened us that innovative drugs could still achieve good sales performance even without entering NRDL. So, companies could choose to give up NRDL negotiation strategically.


China Healthcare Weekly (May13)-New Bioeconomy Plan,Rational Withdrawal from NRDL,Medical Device VBP

China

Akeso is a biopharmaceutical company focused on the research, development, manufacturing, and commercialization of innovative antibody drugs. It develops treatments for major diseases such as cancer, autoimmune diseases, inflammation, and metabolic diseases, with key products including cadonilimab, ivonescimab, and penpulimab. The company was founded in 2012 and is headquartered in Zhongshan, Guangdong, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Akeso (9926 HK)

Policy Interpretation of 2022 National Medical Insurance (NRDL) Negotiation

We analyzed the new policies, bidding rules, logic and impact on companies of 2022 NRDL adjustment,which will be very intense.The results will be...

Xinyao (Criss) Wang

China Healthcare Weekly (July.1)- TCM New Policy, Private Hospitals Survival Pressure, Sino Biopharm

New policy about TCM talent will have great significance of TCM development.Private hospitals' survival pressure will be reflected in financial...

Xinyao (Criss) Wang

Hong Kong Single Stock Options Weekly July 20–24: Tencent Drives Option Activity, Materials Surge

Tencent’s sharp decline dominated option activity while surging Materials stocks stood out against a broader market advance that showed signs of...

John Ley

HK Short Interest Weekly: Hua Hong Semi, Knowledge Atlas, Ntes, China Resources Land, Weichai Power

We analyzed the latest HK SFC report for aggregate short position as of Jul 17th and highlight short interest changes in Hua Hong Semi (1347 HK),...

Ke Yan, CFA, FRM

China Healthcare Weekly (May13)-New Bioeconomy Plan,Rational Withdrawal from NRDL,Medical Device VBP

The 14th Five-Year Bioeconomy plan indicates a new economic form and a trillion-level market.Medical device will be a better investment if...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)