Core Insights - The National Healthcare Security Administration (NHSA) of China has publicly announced the preliminary review results for the 2025 National Medical Insurance Drug List, indicating a significant increase in the number of drug names passing the initial review compared to 2024 [1] Group 1: Drug List Review - A total of 718 submissions for the basic medical insurance drug list were received, involving 633 drug names, with 534 passing the preliminary review [1] - For the 2024 review, only 249 drug names passed, showing a notable increase in successful submissions this year [1] Group 2: Commercial Insurance Drug List - The NHSA has introduced a new commercial insurance innovative drug list, which was submitted concurrently with the basic medical insurance list [1] - There were 141 submissions for the commercial insurance innovative drug list, with 121 drug names passing the preliminary review [1] Group 3: Review Process Clarification - The NHSA emphasized that passing the preliminary review only indicates compliance with submission conditions and does not guarantee inclusion in the final drug lists [1] - The drugs that pass the preliminary review will still undergo public scrutiny before being officially included in the basic medical insurance or commercial insurance innovative drug lists [1]

Group 1 - The National Medical Insurance Administration (NMIA) announced the preliminary results of the 2025 National Medical Insurance Drug List review, with 534 drugs passing the formal review, indicating an increase in the number of drug applications compared to 2024 [1] - The adjustment process for the medical insurance drug list includes several stages: enterprise application, formal review, expert evaluation, negotiation and bidding, and price consultation [1] - A new category for commercial insurance innovative drugs has been added this year, with 141 generic drug names submitted for review, of which 121 passed the formal review [1] Group 2 - Some drugs applied for both the basic medical insurance list and the commercial insurance innovative drug list, leading to potential discrepancies in the review results due to differing application criteria [1] - Expensive drugs that exceed the basic medical insurance coverage may pass the preliminary formal review, but their final inclusion in the basic medical insurance list depends on strict evaluation procedures, including successful negotiations for exclusive drugs and competitive bidding for non-exclusive drugs [1] - The public consultation period for the announced results will end on August 18, during which the NMIA will review feedback and finalize the list of drugs that passed the formal review [2]

Core Viewpoint - The National Healthcare Security Administration (NHSA) has published the preliminary results of the initial review for the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance drug catalog adjustments, as well as the commercial health insurance innovative drug catalog adjustments, indicating a structured approach to drug approval and transparency in the process [1][2]. Group 1: Initial Review Process - The initial review serves to verify whether the submitted drugs meet the application conditions for the basic medical insurance and commercial health insurance innovative drug catalogs, ensuring the completeness and compliance of the application materials [1][2]. - The review process consists of four steps: initial review, public announcement of results, re-examination, and announcement of re-examination results, with the current publication representing the initial review results [1][3]. Group 2: Comparison with Previous Year - From July 11 to July 20, 2025, the NHSA received 718 applications for the basic medical insurance catalog, involving 633 drug generic names, with 534 passing the initial review, a significant increase from 249 in 2024 [4]. - The newly established commercial health insurance innovative drug catalog received 141 applications, with 121 drug generic names passing the initial review, indicating a robust interest in both catalogs [4]. Group 3: High-Cost Drugs and Review Implications - The NHSA emphasizes that passing the initial review does not guarantee inclusion in the basic medical insurance catalog, as further evaluations and negotiations are required, especially for high-cost drugs that exceed basic coverage [4][5]. - The agency aims to balance basic medical needs with clinical advancements while maintaining the sustainability of the insurance fund, indicating a cautious approach to including expensive drugs in the catalog [4]. Group 4: Next Steps - Following the public announcement, the NHSA will review feedback received during the public comment period to finalize the list of drugs that passed the initial review and will communicate the results to the applicants [6]. - The NHSA will proceed with expert evaluations, negotiations for the basic medical insurance catalog, and price discussions for the commercial health insurance innovative drug catalog as part of the ongoing adjustment process [6].

Group 1 - The National Medical Insurance Administration has officially launched the adjustment of the national basic medical insurance, maternity insurance, and work-related injury insurance drug catalog, as well as the commercial health insurance innovative drug catalog, starting from July 11, 2023 [1] - The newly added commercial health insurance innovative drug catalog focuses on high innovation, significant clinical value, and substantial patient benefits, which cannot be included in the basic catalog due to exceeding the "basic insurance" scope [1][4] - The adjustment aims to enhance the multi-tiered medication security system, better meet the diverse medication needs of the public, and provide stronger economic support for the development of innovative drugs [1][4] Group 2 - The adjustment criteria for traditional Chinese medicine (TCM) have been clarified, allowing eligible TCM decoction pieces to be included in the adjustment scope [2] - Specific conditions for TCM drugs to be included in the basic catalog include those approved by the National Medical Products Administration between January 1, 2020, and June 30, 2025, and those with significant changes in indications or functions [2][3] - The adjustment will also consider removing TCM drugs from the basic catalog if they have not supplied the market as agreed or have no transaction volume on the national medical insurance information platform [3] Group 3 - The commercial health insurance innovative drug catalog will be submitted and adjusted simultaneously with the medical insurance catalog, reducing the administrative burden on pharmaceutical companies [4][5] - The establishment of the commercial health insurance innovative drug catalog is intended to clarify the boundaries of basic medical insurance coverage and provide more development space for commercial health insurance [4] - The National Medical Insurance Administration will ensure the connection between the medical insurance drug catalog and the commercial health insurance innovative drug catalog, providing stable outlets for innovative drugs [5]

Report Investment Rating The document does not mention the industry investment rating. Core Viewpoints The report provides a comprehensive overview of the overnight market trends, important macro - economic news, and developments in various financial sectors including futures, stocks, bonds, and foreign exchange. It also presents data on different industries such as manufacturing, real estate, and energy, along with policy updates and market expectations. Summary by Category Overnight Market Trends - International precious metal futures generally rose, with COMEX gold futures up 1.28% at $3349.90 per ounce and COMEX silver futures up 0.20% at $36.25 per ounce [2][46] - International oil prices strengthened slightly, with the US oil main contract up 0.65% at $65.53 per barrel and Brent crude main contract up 0.69% at $67.20 per barrel [3][46] - Most London base metals declined, except LME copper which rose 0.75% to $9943.00 per ton [4][46] - Most CBOT agricultural product futures rose, with wheat up 2.14% and soybeans up 0.05%, while corn fell 0.86% [4] - Domestic futures were mixed, with caustic soda up over 2% and rebar up nearly 1%, while sugar, PX, and PTA fell over 1% [4] Macro - economic News - Trump's trade officials are seeking smaller - scale trade deals to avoid tariff re - imposition [6] - The Caixin China Manufacturing PMI in June was 50.4, up 2.1 points from May and back above the critical point [6] - China will promote the construction of a unified national market and address low - price disorderly competition [6] - China's heavy - truck sales in June were about 92,000, up 4% from May and 29% from last year [6] - Trump doubts a trade deal with Japan by July 9 [7] - Fed Chair Powell leaves the door open for July rate - cut decision [7][15][37] Energy and Chemical Futures - Domestic airlines will raise fuel surcharges from July 5 [10] - China raised domestic gasoline and diesel prices on July 1 [10][30] - Some domestic photovoltaic glass manufacturers plan to cut production in July [10] Metal Futures - China's electrolytic copper production in June decreased 0.3% month - on - month but increased 12.93% year - on - year, and is expected to rise in July [12] - HSBC raised its 2026 gold price forecast to $3125 per ounce [13] Black - series Futures - China's 47 - port imported iron ore inventory decreased by 28.74 tons on July 1 compared to the previous Monday [17] - Australian and Brazilian major port iron ore inventory decreased slightly in late June [17] Agricultural Product Futures - China's major oil mills' soybean crushing and bean - meal output are expected to remain high in July, and bean - meal inventory may rise [19] - Malaysia's palm oil production decreased in June [19] - China's national soybean, corn, and palm oil export and production forecasts are updated [22] - ICE raw sugar July contract delivery volume was the lowest since 2014 [23] - US soybean crushing and soybean oil production increased in May [23] Financial Markets Stocks - A - shares showed a mixed trend on Tuesday, with the Shanghai Composite Index up 0.39% [25] - Hong Kong stocks were closed on Tuesday [26] - Northeast Securities' gold - stock portfolio led with a 45.45% return in H1 [27] - IPO acceptance reached a peak in June, with the Beijing Stock Exchange leading [28] - Heyuan Biotech's IPO application was approved on the Science and Technology Innovation Board [28] - Analysts are optimistic about A - shares' medium - to - long - term prospects and the continuation of the Hong Kong IPO boom [29] International Stocks - US stocks closed mixed, with the Dow up 0.91% and the S&P 500 down 0.11% [43] - European stocks also closed mixed, with the German DAX down 0.99% and the UK FTSE 100 up 0.28% [43] - The S&P 500 is expected to rise in July but may weaken in August [45] - Hedge funds made large net purchases of US bank stocks last week [45] Bonds - Local government bond issuance increased by about 57.2% in H1 compared to the same period in 2024 [48] - The domestic bond market was generally positive, with most yields of major interest - rate bonds in the inter - bank market falling [49] - US Treasury yields mostly rose, affected by employment and manufacturing data [49] - Japan's 10 - year government bond auction was relatively strong [50] Foreign Exchange - The on - shore RMB against the US dollar rose on Tuesday [51] - The euro - dollar exchange rate is a concern for policymakers if it breaks above 1.2 [51] - The US dollar index fell 0.13% on Tuesday [53] Industry News - New energy vehicle sales in June showed a mixed performance, with some brands hitting new highs and others declining [32] - China's National Healthcare Security Administration is adjusting the medical insurance drug catalog and supporting innovative drugs [32] - China's film box office and attendance increased in H1 2025 [33] - Real estate investment by top 100 developers increased in H1, and Beijing's second - hand housing transactions rose [33][34] - Shanghai will subsidize the replacement of old electric bicycles [35] International News - Trump is tough on trade negotiations with Japan and the EU [37] - The EU and the US are in the final stage of trade - deal negotiations [37] - Eurozone inflation reached the ECB's target in June, and the ECB may slow down rate - cuts [37][39] - US manufacturing PMI improved but remained in contraction in June [38] - US job openings increased in May [39] - South Korea may tax dividend income separately [41] - Argentina will appeal a court ruling on its national oil company [42]