Assessment Report on Investment Opportunities Arising from Guangdong's High-Quality Development Policies for the Insurance Industry

The Guangdong Financial Regulatory Bureau recently issued the “Guiding Opinions on Supporting the High-Quality Development of the Insurance Industry in Our Province to Help Guangdong Take the Lead in Chinese-Style Modernization Construction”, marking a major institutional innovation in China’s medical security system. Key policy points include:

• Build a multi-level medical security system
  : Clarify the strategic position of commercial health insurance in multi-level protection
• Include innovative drugs and medical devices in insurance coverage
  : Steadily explore including new medical technologies, drugs, and devices in coverage
• Develop long-term medical insurance and nursing insurance
  : Encourage development of exclusive health insurance products for the elderly and chronic disease patients
• Support protection for specific groups
  : Focus on key groups like the elderly and chronic disease patients

On December 7, 2025, the National Healthcare Security Administration officially released

[1][2]. The first batch includes 19 innovative drugs covering treatment areas such as cancer, Alzheimer’s disease, and rare genetic diseases. Products from international pharmaceutical companies like Eli Lilly, Pfizer, and Johnson & Johnson were successfully included [1][2]. CARsgen’s CAR-T cell therapy product Zevor-Cel was also included in the catalog [3], reflecting policy support for cutting-edge innovative therapies.

• Leading companies have solid fundamentals
  : Ping An of China (601318.SS) and China Life Insurance (601628.SS), as the two leaders in the insurance industry, have shown strong financial performance [0]
  • Ping An of China: Market capitalization 1.30 trillion yuan, stock price up 47.32% in the past year, P/E ratio 9.52x (undervalued), ROE 14.77% [0]
  • China Life Insurance: Market capitalization 1.41 trillion yuan, stock price up 27.36% in the past year, P/E ratio 8.29x (highly undervalued), ROE 31.07% [0]

1. Expand coverage
   : Including innovative drugs and devices will significantly enhance the attractiveness of insurance products and drive premium growth
2. Product innovation space
   : Policies encourage development of long-term medical and nursing insurance, allowing insurers to launch differentiated products to capture market share
3. Expand customer base
   : Protection needs of key groups like the elderly and chronic disease patients will unlock new market space
4. Guangdong pilot takes the lead
   : As an economic and populous province, Guangdong’s pilot has national demonstration effects

Assessment Dimension	Rating	Core Logic
Short-term Catalyst	★★★★★	Innovative drug catalog released, policy implementation enters practical stage
Mid-term Growth	★★★★☆	Large product innovation space, continuous coverage expansion
Long-term Barrier	★★★★☆	Leading companies have advantages in data, channels, and capital
Valuation Attractiveness	★★★★☆	Industry P/E at historical low (8-10x)

: Ping An of China (601318.SS), China Life Insurance (601628.SS)

Commercial health insurance coverage of innovative drugs and devices will fundamentally change their payment landscape:

1. Significant payment capacity improvement
   : Innovative drugs shift from “self-paid high-priced drugs” to “insurance-covered drugs”, greatly enhancing patient payment capacity
2. Rapid market expansion
   : Including 19 innovative drugs is just the beginning; more innovative products are expected to be added in the future
3. Optimized commercialization path
   : Pharmaceutical companies can achieve rapid commercialization of innovative products through cooperation with insurers

• Medical device leader
  : Mindray Medical (300760.SZ), a domestic medical device leader, has stable fundamentals despite recent stock pressure (down 17.50% in the past year) [0]
  • Market capitalization: 245.3 billion yuan, P/E ratio:28.53x
  • ROE:22.52%, net profit margin:26.09%, outstanding profitability [0]
  • Policies drive demand growth for high-end medical devices, benefiting long-term from improved medical insurance payment capacity

• Innovative drug layout
  : Fosun Pharma (600196.SS) has continuous layout in innovative drugs [0]
  • Market capitalization:72.1 billion yuan, P/E ratio:21.95x
  • Although ROE is relatively low (6.89%), innovative products are expected to achieve better returns under policies including innovative drugs and devices in insurance [0]

1. CAR-T cell therapy
   : CARsgen’s CAR-T product was included in the innovative drug catalog [3], verifying policy support for cutting-edge therapies and bringing commercial opportunities to related companies
2. High-end medical devices
   : Segments like medical imaging equipment, in vitro diagnostics, and interventional devices will benefit from improved payment capacity
3. Rare disease drugs
   : The innovative drug catalog explicitly includes rare disease treatments, unlocking market expansion for companies in this field

Assessment Dimension	Rating	Core Logic
Market Space	★★★★★	Payment capacity leap, shifting from self-paid to insurance-covered market
Policy Certainty	★★★★☆	Innovative drug catalog has been implemented, policy direction is clear
Valuation Rationality	★★★☆☆	Medical device valuations are relatively high, innovative drug valuations are reasonable
Short-term Catalyst	★★★★☆	Expectation of more innovative drugs and devices being included in the catalog

: Mindray Medical (300760.SZ), Fosun Pharma (600196.SS)

1. Nursing insurance development
   : Policies explicitly encourage nursing insurance development, providing payment protection for the rehabilitation and nursing industry
2. Accelerated aging
   : The proportion of China’s population over 60 continues to rise, driving rigid growth in rehabilitation and nursing demand
3. Policy support for elderly care industry
   : Silver economy has become a national strategy, bringing policy dividends to the elderly care industry

1. Service model innovation
   : Extend from traditional inpatient care to community and home care
2. Technology-nursing integration
   : AI and telemedicine will improve nursing efficiency and quality
3. Industry chain integration
   : Deep integration of medical, rehabilitation, elderly care, and nursing industries

Assessment Dimension	Rating	Core Logic
Demand Certainty	★★★★★	Irreversible aging trend, rigid demand growth
Policy Support Intensity	★★★★☆	Nursing insurance development provides payment protection
Market Maturity	★★★☆☆	Industry is in early development stage, needs time to cultivate
Investment Targets	★★★☆☆	Few direct A-share targets, focus on industry chain opportunities

: Focus on industry chain opportunities in nursing services, rehabilitation devices, and elderly care communities

• Core Allocation
  : Insurance leaders like Ping An of China and China Life Insurance
• Catalyst
  : Insurance product sales data exceeding expectations after the innovative drug catalog launch
• Risk Warning
  : Impact of macroeconomic fluctuations on insurance demand

• Key Layout
  : Medical device leaders like Mindray Medical
• Allocation Logic
  : Policies drive demand growth for innovative devices; allocation opportunities emerge after valuation digestion
• Catalyst
  : Expectation of more innovative drugs and devices being included in commercial insurance catalogs

• Strategic Allocation
  : High-quality targets in the elderly care and nursing industry chain
• Focus Areas
  : Nursing services, rehabilitation devices, elderly care community operations
• Investment Logic
  : Long-term growth track driven by aging trend

1. Policy Execution Risk
   : Policy implementation takes time; actual effects need to be observed
2. Payment Capacity Limitation
   : Commercial health insurance coverage expansion is a process; payment capacity may be limited in the short term
3. Increased Industry Competition
   : Policy dividends attract more participants, leading to intensified competition
4. Valuation Fluctuation Risk
   : Some targets have high valuations, leading to correction risks

Guangdong’s high-quality development policies for the insurance industry have substantial benefits for the three sectors:

• Commercial Health Insurance Sector
  : Highest short-term certainty; insurance leaders have low valuations and high allocation value
• Innovative Drugs and Medical Devices Sector
  : Long-term market expansion driven by payment capacity leap; focus on device leaders and innovative drug companies
• Rehabilitation and Nursing Sector
  : Large long-term growth space; wait for industry maturity and direct investment opportunities

: ★★★★☆ (Clear policy benefits, significant investment opportunities)

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[0] Jinling API Data (Broker API)
[1] Bloomberg - “Eli Lilly, Pfizer Land on China’s First Private Insurance List” (https://www.bloomberg.com/news/articles/2025-12-07/eli-lilly-pfizer-land-on-china-s-first-private-insurance-list)
[2] Financial Times - “CARsgen’s CAR-T Product Zevor-Cel Included in China’s Commercial Health Insurance Innovative Drug Catalogue” (https://markets.ft.com/data/announce/detail?dockey=600-202512070421PR_NEWS_USPRX____CN40954-1)
[3] BioSpace - “CARsgen’s CAR-T Product Zevor-Cel Included in China’s Commercial Health Insurance Innovative Drug Catalogue” (https://www.biospace.com/press-releases/carsgens-car-t-product-zevor-cel-included-in-chinas-commercial-health-insurance-innovative-drug-catalogue)