Core Insights - The report highlights the positive performance of the pharmaceutical index, with five out of six sub-industries recording positive returns this week [2] - The approval of the traditional Chinese medicine "Loquat Lung Clearing Granules," developed by Xiamen University and Shenwei Pharmaceutical, marks a significant achievement in the modernization of traditional medicine, showcasing the integration of ancient wisdom with modern technology [3][8] - The Chinese traditional medicine industry is entering a new phase of high-quality development, supported by government policies and technological innovations, with the market size expected to exceed 480 billion yuan by 2024 [9][10] Industry Performance Review - The pharmaceutical sector, particularly the chemical pharmaceuticals and traditional Chinese medicine sub-industries, showed strong performance with increases of 5.01% and 3.12% respectively [14] - The valuation levels for the chemical pharmaceuticals and biological products were the highest at 92.95 times and 74.63 times respectively, while traditional Chinese medicine had a valuation of 34.05 times [14] Industry Trends and Developments - The report discusses the implementation of the "Strong Foundation Project" by the National Development and Reform Commission, aimed at enhancing grassroots healthcare services and promoting the integration of traditional Chinese medicine into the healthcare system [21] - The introduction of policies in Henan Province to include suitable traditional Chinese medicine techniques in medical insurance coverage is expected to alleviate the economic burden on patients and promote the use of traditional medicine in chronic disease treatment [26][30]