First Read: China Healthcare "TCM rally driven by policy supports, with..."

研报英文原文证据摘录

First Read: China Healthcare "TCM rally driven by policy supports, with..."

Global Research

13 July 2026ab

First Read

EquitiesChina Healthcare

TCM rally driven by policy supports, with further China

upside from rotation into value Healthcare

Michelle Zhu

Analyst

michelle.zhu@ubs.com

Policy support puts TCM back on investors' radar +86-21-3866 8838

Traditional Chinese Medicine (TCM) stocks rallied (CSI TCM +4.1%) today, primarily Chen Chen, PhD

driven by policy catalysts. On 10 July, the State Council approved the 15th Five-Year Plan Analyst

for the Revitalization and Development of Traditional Chinese Medicine (see link). S1460520100001

Although the full text has not yet been published, we expect the plan to maintain the chen-zb.chen@ubs.com

comprehensive industry support framework established under the 14th Five-Year Plan, +86-10-5832 8201

while placing greater emphasis on upgrading the sector from scale expansion toward Anita Wei

higher quality growth, better industry structure, and improved economic efficiency. A Analyst

day earlier, on 9 July, the National Essential Drug List (NEDL) 2026 was released, adding anita.wei@ubs.com

48 new TCM products and reinforcing the government's policy direction of promoting +852-2971 7459

the coordinated development of traditional Chinese and Western medicine (see our

report).

NEDL inclusion creates incremental growth opportunities

While the 15th Five-Year Plan represents a longer-term policy narrative, we believe

inclusion in the NEDL could have more immediate and tangible earnings implications for

select companies, particularly those with exclusive products that are well positioned for

accelerated adoption in primary healthcare institutions. Newly added exclusive TCM