After years of deep adjustments from centralized procurement and cost-control policies, the medical device sector may be entering a period of alignment across valuations, performance, and policy. Starting July 7, 2026, the Huatai-PineBridge Medical Device ETF (Subscription Code: 561813, Fund Code: 561810) will officially launch for subscription. This aims to provide investors with a high-purity, low-cost on-exchange investment tool for the medical device industry, at a time when valuations are relatively low and fundamentals show signs of recovery.

In recent years, consumables procurement and DRG payment reforms have consistently weighed on the market performance of the medical device sector. However, as centralized procurement coverage of mainstream products becomes more comprehensive and its rules become more moderate with a clear tilt towards innovation, its marginal impact on the industry is diminishing. More crucially, the "15th Five-Year Plan" released this March explicitly "supports the development of innovative drugs and medical devices," positioning the medical device industry at the strategic intersection of building a Healthy China, cultivating new quality productive forces, and upgrading high-end manufacturing. This top-level policy design provides solid support for the industry's medium-to-long-term development. Concurrently, sector valuations remain in the mid-to-low historical range—as of June 30th, the price-to-earnings ratio of the CSI All Share Medical Devices Index was 39.32 times, sitting at the 38.46th percentile since the index's launch on July 15, 2013. Furthermore, Q1 2026 financial data shows the sector's revenue has resumed year-on-year growth of 3.76%. The signal of performance recovery, combined with the valuation trough, is gradually heating up market expectations for a dual recovery in the device sector's "performance + valuation."

Beyond the recovery narrative, two long-term drivers—"innovation + globalization"—are also opening new growth avenues for the sector. Regarding globalization, pricing environments in developed overseas medical device markets are more favorable, often allowing similar products to achieve higher profit margins abroad. According to Wind data and listed companies' annual reports, the combined overseas revenue of 187 A-share listed medical device companies accounted for nearly 30% of their total revenue in 2025. High-quality domestic companies are leveraging global expansion to break through business ceilings and continuously optimize their profit structures. On the innovation front, the National Medical Products Administration (NMPA) issued the "Measures for Optimizing Whole Lifecycle Regulation to Support the Innovative Development of High-End Medical Devices" in July 2025. This January, the National Healthcare Security Administration (NHSA) also released the "Guidelines for Establishing Pricing Items for Surgical and Therapeutic Auxiliary Operation Medical Services (Trial)." Cutting-edge technologies like brain-computer interfaces and surgical robots are accelerating their path to clinical and commercial application. Medical device companies possessing core R&D capabilities are poised to be among the first to benefit from this wave of innovation dividends.

The newly launched Huatai-PineBridge Medical Device ETF (Subscription Code: 561813, Fund Code: 561810) closely tracks the CSI All Share Medical Devices Index. Its portfolio excludes pharmaceutical companies, maintaining a 100% focus on the medical device sector for a pure play. The index constituents have weights of approximately 46%, 34%, and 20% in three core segments: medical equipment, medical consumables, and in-vitro diagnostics, respectively. It includes both industry-leading giants and growth leaders in specialized niches, offering a relatively comprehensive reflection of China's medical device industry's development pattern characterized by "leading frontrunners and multiple growth points."

The fund manager, Huatai-PineBridge Fund Management, is one of China's first ETF providers, with over 19 years of passive investment management experience. To date, the firm has been awarded the title of "Golden Bull Fund Company for Passive Investment" eight times, accumulating a total of 18 Golden Bull Awards in the passive investment field. As of June 30th, the cumulative dividends distributed by its ETFs have exceeded 32 billion yuan, making it the only ETF manager in the market whose cumulative ETF dividends have surpassed the 30 billion yuan mark.