Report Summary 1. Report Industry Investment Rating - No information provided on the report industry investment rating. 2. Core View of the Report - The adjustment of risk factors for insurance companies' related businesses by the National Financial Regulatory Administration has brought incremental funds to the A - share market and boosted market sentiment. Traders can consider gradually establishing long positions during market adjustments and leveraging the discount structure of stock index futures to increase the probability of long - term investment success [5]. 3. Summary by Relevant Catalogs Market and Liquidity - Last week, the central bank conducted 663.8 billion yuan of reverse repurchase operations in the open market. With 1511.8 billion yuan of reverse repurchase maturing, there was a net withdrawal of 848 billion yuan. Additionally, 1 trillion yuan of 91 - day term repurchase expired, and the central bank conducted 1 trillion yuan of 91 - day term repurchase operations. This week, 663.8 billion yuan of reverse repurchase will mature, with daily maturities of 107.6 billion yuan, 156.3 billion yuan, 79.3 billion yuan, 180.8 billion yuan, and 139.8 billion yuan from Monday to Friday [2][3]. - Interest rate changes: DR001 closed at 1.30 with a 0.06 - basis - point increase; DR007 at 1.44 with a 0.04 - basis - point increase; GC001 at 1.45 with a 25 - basis - point increase; GC007 at 1.51 with a 2 - basis - point increase; SHBOR 3M at 1.58 with no change; LPR 5 - year at 3.50 with no change; 1 - year treasury bond at 1.40 with a 0.5 - basis - point decrease; 5 - year treasury bond at 1.63 with a 1.39 - basis - point decrease; 10 - year treasury bond at 1.85 with a 2.34 - basis - point decrease; 10 - year US treasury bond at 4.14 with a 3 - basis - point increase [3]. Stock Index and Market Performance - Index closing prices and changes: CSI 300 closed at 4585, up 0.84%; SSE 50 at 3002, up 0.93%; CSI 500 at 7098, up 1.21%; CSI 1000 at 7342, up 1.29%. Futures contracts: IF current - month at 4574, up 1.0%; IH current - month at 2997, up 1.0%; IC current - month at 7083, up 1.4%; IM current - month at 7320, up 1.5% [4]. - Trading volume and open interest changes: IF trading volume was 124,819, up 34.8%, and open interest was 277,131, up 5.8%; IH trading volume was 56,681, up 44.3%, and open interest was 99,128, up 13.2%; IC trading volume was 131,971, up 32.2%, and open interest was 260,378, up 6.6%; IM trading volume was 220,452, up 28.1%, and open interest was 376,973, up 5.5% [4]. - Last week, the CSI 300 rose 1.28% to 4584.5; the SSE 50 rose 1.09% to 3002; the CSI 500 rose 0.94% to 7097.8; the CSI 1000 rose 0.11% to 7342.5. Among the Shenwan primary industry indices, non - ferrous metals (5.3%), communication (3.7%), national defense and military industry (2.8%), machinery and equipment (2.8%), and non - bank finance (2.3%) led the gains, while media (- 3.9%), real estate (- 2.2%), food and beverage (- 1.9%), computer (- 1.7%), and textile and apparel (- 1.6%) led the losses. The daily trading volumes of A - shares last week were 1701.6 billion yuan, 1467.1 billion yuan, 1546.5 billion yuan, 1419.2 billion yuan, and 1567.8 billion yuan, with the average daily trading volume decreasing by 24.7 billion yuan compared to the previous week [4]. Futures Premium and Discount Situation - IF premium/discount rates: 3.97% for the current - month contract, 5.48% for the current - quarter contract, 3.77% for the next - quarter contract, and 6.73% for the next - month contract; IH premium/discount rates: 3.47% for the current - month contract, 1.65% for the current - quarter contract, 1.72% for the next - quarter contract, and 4.67% for the next - month contract; IC premium/discount rates: 6.27% (not fully clear from the text); IM premium/discount rates: 12.72% for the current - month contract, 12.35% for the current - quarter contract, 9.40% for the next - quarter contract, and 12.41% for the next - month contract [5].

Group 1: National Medical Insurance Drug List Update - The 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug List will be released on December 7, 2023, adding 114 new drugs, including 50 innovative Class 1 drugs [2] - The first Commercial Health Insurance Innovative Drug List will also be released on the same day, including 19 drugs, such as CAR-T and Alzheimer's treatment drugs [2] - The new drug list will officially take effect on January 1, 2026 [2] Group 2: Company Announcements - 15 A-share pharmaceutical companies announced that their products were included in the new drug list, with many innovative drug companies benefiting [2] - Zai Lab announced that its self-developed drug, Gilteritinib, was included in the National Medical Insurance Drug List, which is expected to enhance sales and market promotion [2] - Junshi Biosciences, ZhiXiang JinTai, and Elysium also had products included in the list, with Junshi's products gaining new indications and being classified under Category B of the National Medical Insurance [3] Group 3: Sales Impact - Heng Rui Medicine stated that the total sales of the newly included drugs for 2024 are estimated to be approximately 8.66 billion yuan, with 7.55 billion yuan expected for the first three quarters of 2025 [4] - The inclusion of these drugs in the National Medical Insurance Drug List is anticipated to positively impact sales, although the exact effect on operating performance is currently uncertain [4]

Group 1: Core Insights - The 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug List was released on December 7, 2023, adding 114 new drugs, including 50 innovative drugs [1] - A new Commercial Health Insurance Innovative Drug List was also published, including 19 drugs, such as CAR-T therapies and Alzheimer's disease treatments [1] - The updated drug list will take effect on January 1, 2026 [1] Group 2: Company Announcements - On December 7, 15 A-share pharmaceutical companies announced that their products were included in the new drug list, particularly many innovative drug companies [2] - Zai Lab announced that its self-developed drug, Jikaxitinib, was included in the National Medical Insurance Drug List, which is expected to enhance sales and market accessibility [2] - Junshi Biosciences and other innovative drug companies also had products included, with Junshi's products gaining new indications in the National Medical Insurance List [2][3] Group 3: Market Impact - Heng Rui Medicine reported that the total sales of its newly included drugs are estimated to be approximately 8.66 billion yuan for 2024 and about 7.55 billion yuan for the first three quarters of 2025 [3] - The inclusion of these drugs in the National Medical Insurance List is expected to positively impact sales and long-term business development for the companies involved [2][3]

Core Viewpoint - The recent notification from the Financial Regulatory Bureau aims to enhance the solvency regulation standards for insurance companies, promoting the effective use of insurance funds to support the real economy while managing risks and ensuring high-quality development [1]. Group 1: Adjustments to Risk Factors - The risk factor for stocks held by insurance companies for over three years in the CSI 300 Index and the CSI Dividend Low Volatility 100 Index has been reduced from 0.3 to 0.27, based on a weighted average holding period over the past six years [2]. - The risk factor for ordinary shares listed on the Sci-Tech Innovation Board held for over two years has been decreased from 0.4 to 0.36, determined by a weighted average holding period over the past four years [2]. Group 2: Export Credit Insurance Adjustments - The premium risk factor for export credit insurance and overseas investment insurance by the China Export Credit Insurance Corporation has been lowered from 0.467 to 0.42, while the reserve risk factor has been reduced from 0.605 to 0.545 [3]. Group 3: Internal Control and Management - Insurance companies are required to improve internal controls to accurately measure the holding period of investment stocks and continuously enhance their long-term capital investment management capabilities [4]. - There is an emphasis on strengthening solvency management, ensuring accurate measurement of various risk capital requirements, and maintaining the authenticity, accuracy, and completeness of solvency data [4].

Core Points - The National Financial Regulatory Administration has adjusted the risk factors for insurance companies' related business, specifically lowering the risk factors for certain stock holdings and insurance premium risks [1][2]. Group 1: Risk Factor Adjustments - The risk factor for stocks in the CSI 300 Index and the CSI Dividend Low Volatility 100 Index held for more than three years has been reduced from 0.3 to 0.27, based on a weighted average holding period over the past six years [1]. - The risk factor for ordinary shares listed on the Sci-Tech Innovation Board held for more than two years has been decreased from 0.4 to 0.36, determined by a weighted average holding period over the past four years [1]. Group 2: Insurance Premium Risk Factors - The risk factor for export credit insurance and overseas investment insurance premiums has been lowered from 0.467 to 0.42, while the reserve risk factor has been reduced from 0.605 to 0.545 [2]. Group 3: Internal Control and Management - Insurance companies are required to enhance internal controls, accurately measure stock holding periods, and continuously improve long-term fund investment management capabilities [2]. - There is an emphasis on strengthening solvency management, ensuring accurate measurement of various risk capital requirements, and maintaining the authenticity and completeness of solvency data [2].

Group 1 - The National Financial Regulatory Administration has adjusted the risk factors for insurance companies' related business, indicating a regulatory shift aimed at managing investment risks more effectively [1] - The risk factor for stocks held by insurance companies for over three years in the CSI 300 Index and the China Securities Dividend Low Volatility 100 Index has been reduced from 0.3 to 0.27, based on a weighted average holding period over the past six years [1] - The risk factor for ordinary shares listed on the Sci-Tech Innovation Board held for over two years has been lowered from 0.4 to 0.36, determined by a weighted average holding period over the past four years [1] - The premium risk factor for export credit insurance and overseas investment insurance by the China Export & Credit Insurance Corporation has been decreased from 0.467 to 0.42, while the reserve risk factor has been reduced from 0.605 to 0.545 [1] Group 2 - Insurance companies are required to enhance internal controls to accurately measure the holding period of stock investments and continuously improve long-term fund investment management capabilities [2] - Insurance companies must strengthen solvency management, accurately measure various risk capital requirements, and ensure that solvency data is true, accurate, and complete [2] - Any previous regulations regarding the aforementioned business risk factors that conflict with this notification will be superseded by this notification [2]