In the morning session, the Chinese medicine (core stocks) sector surged against the trend. As of the time of writing, Zhendong Pharmacy rose over 19%, Bio Valley increased over 13%, TY PHAR. and Hansen Pharmaceutical hit the daily limit, Enwei Pharmaceutical (core stock) and Datang Pharmaceutical rose over 9%, Guangdong Wannianqing increased over 8%, Longshen Rongfa, Qizheng Tibetan Medicine, and Shanghai Kaibao rose over 5%.

On the news front, the Ministry of Industry and Information Technology and seven other departments recently issued the "Implementation Plan for the High-Quality Development of the Chinese Medicine (Core Stocks) Industry (2026-2030)", proposing that by 2030, a collaborative development system for the entire industrial chain of Chinese medicine will be initially formed, with a focus on enhancing the stable supply capacity of key Chinese medicine raw materials and significantly improving the level of digitalization and greening.

The plan proposes 15 specific tasks around six major actions: improving the quality and stability of raw materials, collaborative innovation breakthroughs, enhancing manufacturing capabilities, revitalizing the national medicine industry, promoting famous Chinese medicine (core stocks) products, and cultivating outstanding enterprises. It aims to cultivate 60 high-standard Chinese medicine raw material production bases, 5 centers for innovation in the Chinese medicine industry, and develop 10 major varieties of traditional Chinese medicine, promoting the approval and market launch of a batch of innovative Chinese medicine drugs.

At the same time, it will gradually cultivate outstanding enterprises, support leading companies in establishing industrial development funds, increase efforts in nurturing listed companies, and promote innovation in Chinese medicine (core stocks) health products, creating a "Chinese medicine +" high value-added industrial chain to comprehensively promote the standardized and modernized development of the Chinese medicine industry.

Related Industries:

Chinese medicine (core stocks) material planting and processing: The plan proposes the construction of high-standard Chinese medicine raw material production bases, encourages the development of modern seed industries for Chinese medicinal materials, enhances the automation level of initial processing at production sites, and promotes the formulation of quality standards for the production and processing of Chinese medicinal materials. Related planting and processing enterprises will welcome opportunities for standardized and scaled development, and authentic medicinal material production enterprises will further consolidate their market position by leveraging the advantages of their production site attributes to achieve high-quality and high-priced products.

Chinese medicine (core stocks) innovation and research: The plan encourages the use of technologies such as artificial intelligence and big data to empower the research and development of new Chinese medicines, promotes the transformation of classic prescriptions and formulations from medical institutions into innovative drugs, and supports the improvement and upgrading of already listed traditional Chinese medicines. Enterprises engaged in the innovation and research of Chinese medicine and evidence-based medical research will benefit from new drug approvals and market promotion support, seizing development opportunities in the industry trend of emerging innovative products.

Chinese medicine (core stocks) intelligent manufacturing: The plan proposes the construction of 20 intelligent factories and 10 green factories, revising and formulating industry standards for digital technology, and promoting enterprises to carry out digital transformation and upgrades. Enterprises with high-end manufacturing capabilities and experience in building intelligent factories will see an increase in orders, further enhancing production efficiency and ensuring stable product quality through digital upgrades, thereby strengthening market competitiveness.

Chinese medicine (core stocks) health products: The plan supports the development of health food, natural cosmetics, and other "Chinese medicine +" products, encouraging enterprises to conduct consumer profiling research and explore segmented market demands. Enterprises engaged in Chinese medicine health consumer products and daily chemical products will benefit from market expansion brought about by consumption upgrades, creating differentiated products based on the unique components of Chinese medicine, opening up new growth spaces Industry Chain Companies:

TY PHAR.: The company's core product, Zhi Ke Bao tablets, has a history of over a century and its secret formula is included in the cultural heritage protection of Lingnan Chinese Medicine (core stock). It has strong brand power and market recognition in the OTC field, and will benefit from the increased market attention brought by the promotion of famous Chinese medicine products, further consolidating its market share.

Kangyuan Pharmaceutical: The company's product line focuses on the advantages of traditional Chinese medicine in respiratory systems and gynecological diseases, deeply participating in the innovative research and development of Chinese medicine (core stock) and the transformation of classic formulas (core stock). It has a first-mover advantage in collaborative innovation efforts and will leverage its R&D strength to promote more innovative products.

Darentang: As a well-known domestic Chinese medicine (core stock) time-honored brand, its business covers the entire industry chain of traditional Chinese medicine, including Chinese patent medicines, Chinese medicinal materials, and chemical preparations. It has a deep brand accumulation and industrial resources, and will receive more policy support in the cultivation of outstanding enterprises, driving upstream and downstream collaborative development through its comprehensive industry chain layout.

Hongri Pharmaceutical: The company mainly engages in modern Chinese medicine (core stock), chemical synthetic drugs, and other diversified products. It has a foundation for digital transformation and experience in intelligent manufacturing, and will benefit from the policy of digital upgrading in Chinese medicine manufacturing, further enhancing production efficiency and product quality control levels, consolidating its industry position.

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