Market Overview - On December 8, the Hang Seng Index fell below the 26,000-point mark, closing down 319 points (1.2%) at 25,765 points, with a total market turnover of HKD 206.2 billion[1] - The market is awaiting the Federal Reserve's interest rate decision, with expectations of a 0.25% rate cut[1] - The net inflow of Hong Kong Stock Connect was HKD 1.54 billion[1] Sector Performance - Chinese brokerage stocks rose after the China Securities Regulatory Commission announced a slight easing of regulations, with Huatai Securities up 5.2%, China Merchants Securities up 2.8%, and CITIC Securities up 1.7%[1] - Major Chinese banks saw declines, with China Construction Bank down 4.0%, China Merchants Bank down 3.5%, and Industrial and Commercial Bank of China down 3.5%[1] - Pop Mart's stock dropped 8.5% amid concerns over declining sales growth for Labubu products[1] U.S. Market Insights - The Dow Jones Index closed down 215 points (0.4%) at 47,739 points, while the Nasdaq fell 32 points (0.1%) to 23,545 points, and the S&P 500 dropped 23 points to 6,846 points[2] - Investors expect the Federal Reserve to cut rates by 0.25% on Thursday, supported by a milder core PCE index[2] Macroeconomic Data - China's total import and export value in November was USD 549.03 billion, up 4.3% year-on-year, with exports rising 5.9% and imports increasing by 1.9%[3] - The trade surplus was USD 111.68 billion, exceeding market expectations of USD 103.1 billion[3] - In the real estate sector, new home sales in 30 major cities fell 33.3% year-on-year, with significant declines across all city tiers[3] Industry Trends - The automotive sector anticipates increased lithium battery production in December, leading to improved industry conditions and price increases, with CATL up 3.3% and Ganfeng Lithium up 7.0%[4] - The healthcare sector saw a 1.5% decline in the Hang Seng Healthcare Index, despite the addition of 114 new drugs to the national medical insurance list, benefiting several major pharmaceutical companies[4] - The renewable energy and utility sectors experienced declines, with major utility stocks falling between 1.0% and 2.8%[5]

Major Events - GuoXia Technology (02655) plans to conduct an IPO from December 8 to December 11, offering 33.85 million H-shares and introducing cornerstone investors such as Huikai Hong Kong [1] - Basilea Pharmaceutica AG (02616) has its drug Pujihua® (Pralsetinib Capsules) included in the National Medical Insurance Directory for 2025 [1] - Four Seasons Pharmaceutical (00460) sees its innovative drug XuanYueNing® included in the National Basic Medical Insurance Drug List for the first time [1] - Shanghai Pharmaceuticals (02607) successfully negotiates and includes Amisulpride Orally Disintegrating Tablets in the National Medical Insurance Directory [1] - Hansoh Pharmaceutical (03692) has its innovative drug Amelotex® approved for two new indications in the updated 2025 National Medical Insurance Directory [1] - Xiansheng Pharmaceutical (02096) sees EnzeShu® and EnDu® included in the updated National Medical Insurance Drug List [1] - Hutchison China MediTech (00013) has its drug Tazverik® included in the first edition of the National Commercial Health Insurance Innovative Drug List [1] - XuanZhu Biotechnology (02575) has its innovative drug XuanYueNing® included in the National Basic Medical Insurance Drug List for the first time [1] - Yino Pharmaceutical (02591) has its H-shares included in the list of eligible securities for the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect [1] - China Metallurgical Group (01618) and its subsidiaries plan to sell non-core business assets for approximately 60.68 billion yuan, focusing on core businesses in metallurgical engineering, non-ferrous metals, and mining engineering [1] - Cambridge Technology (06166) intends to invest a total of 405 million yuan to acquire and subscribe for shares in the Yangzhong Happiness Home Venture Capital Partnership Fund [1] Operating Performance - Dongfeng Motor Group (00489) reports cumulative automobile sales of 1.697 million units in the first 11 months, a year-on-year decrease of approximately 0.3% [2] - New天绿色能源 (00956) achieves a cumulative power generation of 1,336.89 million MWh in the first 11 months, an increase of 8.04% year-on-year [2] - Longyuan Power (00916) reports a cumulative power generation of approximately 6,909.64 million MWh in the first 11 months, a year-on-year growth of 0.41% [2] - Baolong Real Estate (01238) records a total contract sales of approximately 6.666 billion yuan in the first 11 months, a year-on-year decline of 43.2% [2]

Core Viewpoint - Hutchison China MediTech Limited (Chi-Med) announced that its drugs ELUNATE, ORPATHYS, and SULANDA will continue to be included in the updated National Medical Insurance Drug List effective from January 1, 2026, following a renewal agreement with the National Healthcare Security Administration of China. Additionally, TAZVERIK has been included in the inaugural National Commercial Health Insurance Innovative Drug List [1]. Group 1 - Chi-Med's drugs ELUNATE, ORPATHYS, and SULANDA will remain in the National Medical Insurance Drug List starting January 1, 2026 [1]. - The renewal agreement with the National Healthcare Security Administration ensures continued access to these medications for patients [1]. - TAZVERIK has been added to the first version of the National Commercial Health Insurance Innovative Drug List [1].

Group 1 - The core point of the article is that Hutchison China MediTech has successfully renewed three of its drugs, which will continue to be included in the updated National Medical Insurance Drug List effective from January 1, 2026 [2] - The three drugs mentioned are Aiyoute, Vorinostat, and Sutai Da, indicating the company's ongoing commitment to maintaining its product offerings in the healthcare market [2] - Additionally, the drug Daviq has successfully entered the first edition of the National Commercial Health Insurance Innovative Drug List, expanding the company's market access [2]

Core Viewpoint - Hutchison China MediTech Limited (00013) announced the renewal of its medical insurance agreements with the National Healthcare Security Administration of China, ensuring the continued inclusion of ELUNATE®, ORPATHYS®, and SULANDA® in the updated National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug List effective from January 1, 2026 [1] Group 1 - ELUNATE®, ORPATHYS®, and SULANDA® will remain included in the National Medical Insurance Drug List starting January 1, 2026 [1] - TAZVERIK® has been included in the inaugural National Commercial Health Insurance Innovative Drug List [1]

Group 1 - The core announcement is that Hutchison China MediTech Limited (和黄医药) has successfully negotiated with the National Healthcare Security Administration of China to include its drugs, Elunate (爱优特), Orpathys (沃瑞沙), and Sulanda (苏泰达), in the new version of the National Medical Insurance Drug List effective from January 1, 2026 [1] - Tazverik (达唯珂) has been included in the inaugural National Commercial Health Insurance Innovative Drug List, indicating a significant step for the company's product portfolio in the commercial insurance sector [1]

Core Insights - Hutchison China MediTech Limited (HCM) announced the renewal of its medical insurance agreements with the National Healthcare Security Administration (NHSA) for several of its drugs, effective from January 1, 2026 [1][2] - The inclusion of ELUNATE® (fruquintinib), ORPATHYS® (savolitinib), and SULANDA® (surufatinib) in the updated National Medical Insurance Drug List signifies continued support for innovative cancer treatments in China [1][2] - TAZVERIK® (tazemetostat) has been added to the inaugural Commercial Health Insurance Innovative Drug List, enhancing access to advanced therapies for patients with specific conditions [1][2] Drug-Specific Summaries - ELUNATE® is approved for use in combination with the anti-PD-1 therapy, sintilimab, for treating advanced endometrial cancer patients who have failed prior systemic anti-tumor therapy and are not suitable for curative surgery or radiotherapy [1] - ELUNATE® is also renewed for treating metastatic colorectal cancer patients who have previously received fluorouracil, oxaliplatin, and irinotecan-based chemotherapy, as well as those who have received or are unsuitable for VEGF and EGFR-targeted therapies [1] - ORPATHYS® is included for treating adults with locally advanced or metastatic non-small cell lung cancer harboring MET exon 14 alterations [1][2] - SULANDA® is renewed for treating unresectable locally advanced or metastatic, progressive, non-functional, well-differentiated (G1, G2) neuroendocrine tumors of pancreatic and non-pancreatic origin [2] - TAZVERIK® is included in the Commercial Health Insurance Innovative Drug List for adult patients with EZH2 mutation-positive relapsed or refractory follicular lymphoma who have received at least two prior systemic therapies [2] Policy and Market Implications - The NHSA's announcement of the 2025 adjustment plan for the National Medical Insurance Drug List and the Commercial Health Insurance Innovative Drug List highlights a focus on high-innovation, clinically valuable drugs that exceed the basic insurance coverage [2] - The establishment of the Commercial Health Insurance Innovative Drug List aims to enhance patient access to breakthrough therapies and supports the sustainable development of China's innovative pharmaceutical industry [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表⽰，概不 對因本公告全部或任何部分內容⽽產⽣或因倚賴該等內容⽽引致的任何損失承擔任何責任。 ⾃願性公告 和⿈醫藥宣佈商業化產品的國家醫保藥品⽬錄覆蓋範圍進⼀步擴⼤ 並獲納⼊⾸版國家商保創新藥⽬錄 和⿈醫藥（中國）有限公司（簡稱「和⿈醫藥」或「HUTCHMED」）今⽇宣佈，經過與中國國家醫療保障局（「國 家醫保局」）的醫保續約，愛優特®（ELUNATE®）、沃瑞沙®（ORPATHYS®）和蘇泰達®（SULANDA®）將繼續獲納 ⼊⾃2026年1⽉1⽇起⽣效的新版《國家基本醫療保險、⼯傷保險和⽣育保險藥品⽬錄》（「國家醫保藥品⽬錄」）。 此外，達唯珂®（TAZVERIK®）獲納⼊⾸版國家商業健康保險創新藥品⽬錄（簡稱「商保創新藥⽬錄」)。 愛優特®（呋喹替尼/ fruquintinib）獲納⼊聯合達伯舒®（信迪利單抗注射液）⽤於治療既往系統性抗腫瘤治療後 失敗且不適合進⾏根治性⼿術治療或根治性放療的晚期錯配修復完整（pMMR）⼦宮內膜癌患者。愛優特®還獲續 約⽤於治療既往接受過氟尿嘧啶類、奧沙利鉑和 ...

Core Insights - The first version of the commercial insurance innovative drug directory has been released, including 19 new drugs from 18 innovative pharmaceutical companies, with a roughly equal share of domestic and imported drugs [1][2] - Approximately 70% of the drugs included are oncology treatments, featuring five high-cost CAR-T products, indicating a significant focus on cancer therapies [1][8] - The inclusion of rare disease medications and Alzheimer's treatments in the directory is expected to enhance commercial insurance payment opportunities and favorable policies for hospital access [1][10] Summary by Category Drug Inclusion - A total of 19 drugs have been included in the first commercial insurance innovative drug directory, with a selection rate of about 16%, aligning with industry expectations [4][6] - The directory features a mix of oncology drugs, rare disease treatments, and Alzheimer's medications, with a notable emphasis on high-priced innovative drugs [1][8] Market Dynamics - The directory's limited number of drugs (around 20) is seen as a strategic move to facilitate implementation and avoid complications in local insurance products [6][10] - The commercial insurance market is expected to leverage the directory to enhance patient access to high-value drugs, particularly in the oncology sector [9][11] Regulatory and Policy Framework - The National Healthcare Security Administration (NHSA) encourages local insurance departments to support the integration of the commercial insurance innovative drug directory into retail pharmacies and monitor pricing [7][14] - The directory aims to provide a reference for various commercial insurance entities, allowing them to negotiate with innovative drug companies without the need for exclusive selections [11][14] Patient Impact - The drugs listed in the directory are characterized by a small patient base or specific indications, minimizing the risk of clinical misuse and aligning with commercial insurance risk management strategies [8][13] - The directory includes several drugs for rare diseases, which are expected to fill clinical gaps and provide essential treatments previously unavailable in China [12][13]

Group 1 - The pharmaceutical industry is expected to experience a critical turning point in 2025, with a stable and positive trend continuing into 2026, influenced by factors such as policy, fundamentals, overseas investment environment, and liquidity [1] - The sector is currently undervalued, and catalysts are anticipated to drive upward momentum, with the realization of value from innovative research further pushing the overall valuation upward [1] - Stock selection will likely return to fundamentals and valuations, focusing on stocks with expected fundamental discrepancies that are still undervalued [1] Group 2 - In the innovative drug/prescription drug segment, short-term focus should be on overseas transactions and performance, with long-term value driven by innovation and iteration [2] - Key short-term catalysts include progress in overseas clinical data, inclusion in medical insurance, and reaching breakeven points, with leading Hong Kong stocks expected to maintain double-digit revenue and net profit growth [2] - Recommended stocks include: 1) 3SBio, Deking Pharmaceutical, and BeiGene, which have rich catalysts and limited impact from procurement; 2) Xiansheng Pharmaceutical, Hutchison China MediTech, and Legend Biotech, which are significantly undervalued with clear long-term growth logic [2] Group 3 - The CXO sector is expected to maintain rapid performance growth, but long-term trends indicate tightening regulations in the U.S. and increasing difficulty in new drug development, suggesting that industry consolidation may just be beginning [3] - Leading players in high-growth segments are expected to have higher long-term certainty [3] Group 4 - High-quality private hospitals are recommended as the pressure on cost control eases and outdated capacity is eliminated, allowing private medical institutions to return to a faster growth trajectory [4] - Recommended stocks include: Guoshengtang and Haijia Medical, which are expected to have short-term performance rebounds and clear long-term expansion paths [4]