
Core Viewpoint - The article highlights the strong performance of the insurance and innovative pharmaceutical sectors in both the A-share and Hong Kong markets, driven by regulatory changes and market dynamics. Insurance Sector - The insurance sector saw significant gains, with New China Life Insurance rising nearly 5% to reach a historical high, while China Life and Ping An both increased by approximately 3% [4][5]. - The China Insurance Industry Association announced a reduction in the guaranteed interest rates for traditional life insurance products, which is expected to improve the liability costs and net investment returns for life insurance companies [5][6]. - The adjustments in interest rates are anticipated to enhance the attractiveness of dividend insurance products, potentially leading to a healthier expansion cycle for leading insurance companies [6]. Innovative Pharmaceutical Sector - The innovative pharmaceutical sector experienced a strong rally, with companies like Heng Rui Medicine and Kangsino Biologics seeing significant stock price increases, with Heng Rui Medicine's market capitalization exceeding 400 billion [8][10]. - The government has introduced policies to optimize drug procurement and support innovative drugs, which is expected to create a favorable environment for the pharmaceutical industry [10]. - The establishment of a dual-directory model for commercial health insurance and basic medical insurance is anticipated to provide a buffer for high-value innovative drugs, facilitating their commercialization in China [10]. PCB Sector - The PCB (Printed Circuit Board) sector showed active trading, with companies like Fangbang Co. and Chipbond Technology hitting the 20% limit up [11]. - The demand for high-end PCBs is expected to grow rapidly due to the increasing need for AI computing power, with a projected supply-demand gap in the AI PCB market [12]. - Leading PCB manufacturers are expected to benefit from their technological capabilities and expansion in high-end PCB production, ensuring sustained performance and growth [12].