Blue Lotus Research Institute

Andy Fu

China growth and global non-US Internet equities

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Beijing launched the use of medical social insurance (MSI) via online payments, marking MSI payable among all the 1st tier cities in China. But the policy only covers non-prescription;</li>
<li>However, the progress for the online penetration of MSI payment was still slow, reaching only 3.6% of all MSI capable pharmacies and 0.8% of all pharmacies in China;</li>
<li>The reason for the slow adoption is the vested, interlinked interests among local public hospitals, local MSI administrators and public security concerns over drug disbursement.</li>
</ul>


Beijing launched the use of medical social insurance (MSI) via online payments, marking MSI payable among all the 1st tier cities in China. But the policy only covers non-prescription;
However, the progress for the online penetration of MSI payment was still slow, reaching only 3.6% of all MSI capable pharmacies and 0.8% of all pharmacies in China;
The reason for the slow adoption is the vested, interlinked interests among local public hospitals, local MSI administrators and public security concerns over drug disbursement.


Despite Many Years and Efforts, Insurance Covered Online Pharmacies Still Only 0.8-3.6% of Total

<ul>
<li>As Chinese population ages, healthcare is a major source of consumption. Yet we are the most pessimistic for it to become a pillar of consumption;</li>
<li>Low healthcare spending in China is achieved by underpaying doctors and nurses. Enhancing life quality, instead of only curing disease, can meaningfully improve consumption; </li>
<li>However, consumer healthcare begets a larger and more common economic phenomenon, which is underpricing. The issue of underpricing stems from low compliance cost, in our opinion.</li>
</ul>


As Chinese population ages, healthcare is a major source of consumption. Yet we are the most pessimistic for it to become a pillar of consumption;
Low healthcare spending in China is achieved by underpaying doctors and nurses. Enhancing life quality, instead of only curing disease, can meaningfully improve consumption; 
However, consumer healthcare begets a larger and more common economic phenomenon, which is underpricing. The issue of underpricing stems from low compliance cost, in our opinion.


How to Stimulate China's Consumption, Part III

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>China's relaxation of COVID-19 control measures is much faster than expected. Due to rising infection rate and mortality rate, China would bear some pressure in the short term. </li>
<li>We analyzed the direct impacts due to COVID policy shift and related investment opportunities. The hardest time of three-year COVID-19 has passed.The playbook of the pandemic is about to end.</li>
<li>With the new leadership taking office, China will be more committed to economic growth after the Two Sessions. Starting from 2023H2, China could formulate independent financial/monetary policies. China will change. </li>
</ul>


China's relaxation of COVID-19 control measures is much faster than expected. Due to rising infection rate and mortality rate, China would bear some pressure in the short term. 
We analyzed the direct impacts due to COVID policy shift and related investment opportunities. The hardest time of three-year COVID-19 has passed.The playbook of the pandemic is about to end.
With the new leadership taking office, China will be more committed to economic growth after the Two Sessions. Starting from 2023H2, China could formulate independent financial/monetary policies. China will change. 


China Makes U-Turn on COVID Policy - Here Are the Direct Impacts and Investment Opportunities

<ul>
<li>The latest press conference has many statements that appeared publicly for the first time or were rarely used before,which reflected the intention to pave the way for the tone change.</li>
<li>We don't expect there would be an official announcement stating clearly "ending the Zero COVID policy", but policy adjustments would be made accordingly. The reopening timeline could be brought forward.</li>
<li>The economic problem is not simply caused by the pandemic, which is just the last straw to topple the dominoes. We analyzed the impact of reopening and investment opportunities. </li>
</ul>


The latest press conference has many statements that appeared publicly for the first time or were rarely used before,which reflected the intention to pave the way for the tone change.
We don't expect there would be an official announcement stating clearly "ending the Zero COVID policy", but policy adjustments would be made accordingly. The reopening timeline could be brought forward.
The economic problem is not simply caused by the pandemic, which is just the last straw to topple the dominoes. We analyzed the impact of reopening and investment opportunities. 


China to End Zero COVID Policy? - Reexamine the Reopening Timeline and Potential Impact

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>Markets are treacherous, but none more than Hong Kong listed stocks.</li><li>The vicious short-covering rallies and an impulse selloff have become a hallmark of the last few weeks.</li><li>First, it was technology on news of ease in regulations, agreements with the US on accounting on a tiered classification of companies by Beijing or in case of Alibaba announcing making Hong Kong it's primary listing to make stock eligible for South Bound inflows.</li></ul>

Markets are treacherous, but none more than Hong Kong listed stocks.The vicious short-covering rallies and an impulse selloff have become a hallmark of the last few weeks.First, it was technology on news of ease in regulations, agreements with the US on accounting on a tiered classification of companies by Beijing or in case of Alibaba announcing making Hong Kong it's primary listing to make stock eligible for South Bound inflows.

China

Ping An Healthcare and Technology Company Limited operates an online healthcare services platform in China, offering online consultations, hospital referrals, health management, and wellness services. The company provides a range of services including online diagnosis and treatment, health check-ups, and drug delivery through its mobile platform. It was founded in 2014 and is headquartered in Shanghai, China.

Ping An Healthcare and Technology (1833 HK)

Price Gauge
52-week Range	0.00 - 0.00
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Ping An Healthcare and Technology (1833 HK)

Despite Many Years and Efforts, Insurance Covered Online Pharmacies Still Only 0.8-3.6% of Total

Beijing introduces online payments for medical social insurance, but slow adoption due to vested interests of the state healthcare complex and...

Blue Lotus Research Institute

How to Stimulate China's Consumption, Part III

China's healthcare system is supply efficient, which leads to underpaying the healthcare professionals' service but overmedicates. To change,...

Blue Lotus Research Institute

China Makes U-Turn on COVID Policy - Here Are the Direct Impacts and Investment Opportunities

China's U-turn on COVID policy will lead to rising infection/mortality rate.We analyzed the direct impact/investment opportunity. Under new...

Xinyao (Criss) Wang

China to End Zero COVID Policy? - Reexamine the Reopening Timeline and Potential Impact

Recent conference reflect the intention to pave the way for tone change. Reopen timeline may be brought forward though it's still possible to “step...

Xinyao (Criss) Wang

Longfor, AAC Technology, Ping An

Markets are treacherous, but none more than Hong Kong listed stocks. The vicious short-covering rallies and an impulse selloff have become a...

Untying The Gordian Knot

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Despite Many Years and Efforts, Insurance Covered Online Pharmacies Still Only 0.8-3.6% of Total

​Beijing introduces online payments for medical social insurance, but slow adoption due to vested interests of the state healthcare complex and...

Blue Lotus Research Institute

How to Stimulate China's Consumption, Part III

China's healthcare system is supply efficient, which leads to underpaying the healthcare professionals' service but overmedicates. To change,...

Blue Lotus Research Institute

China Makes U-Turn on COVID Policy - Here Are the Direct Impacts and Investment Opportunities

China's U-turn on COVID policy will lead to rising infection/mortality rate.We analyzed the direct impact/investment opportunity. Under new...

Xinyao (Criss) Wang

China to End Zero COVID Policy? - Reexamine the Reopening Timeline and Potential Impact

Recent conference reflect the intention to pave the way for tone change. Reopen timeline may be brought forward though it's still possible to “step...

Xinyao (Criss) Wang

Longfor, AAC Technology, Ping An

Markets are treacherous, but none more than Hong Kong listed stocks. The vicious short-covering rallies and an impulse selloff have become a...

Untying The Gordian Knot

Beijing introduces online payments for medical social insurance, but slow adoption due to vested interests of the state healthcare complex and...