The medical device sector is currently experiencing dual catalysts from top-level policy design and industrial developments this year. Taking the brain-computer interface (BCI) sub-sector as an example, on one hand, the "15th Five-Year Plan" outline released earlier this year included it for the first time among the six key future industries for development, marking its official incorporation into the national strategic layout. On the other hand, the "2026 Q1 China Medical Device Investment and Financing Panorama" report indicates that there were approximately 146 financing events in the medical device sector in Q1, with a total amount of around RMB 11.013 billion, of which the BCI field alone saw financing exceeding RMB 3 billion. Against this backdrop, Fullgoal Fund has introduced a thematic fund focused on medical devices—the Medical Device ETF Fullgoal (Fund Code: 159056). This ETF officially commenced issuance on May 13th, aiming to provide investors with a high-purity investment tool for one-click exposure to the medical device sector.
The advantages of the CSI All Share Medical Device Index are prominent, with three key highlights constructing a high-purity investment instrument. Specifically, Wind data shows that as of April 29, 2026, 100% of its constituent stocks are medical device companies, covering core segments such as medical equipment, high-value consumables, in-vitro diagnostics, and medical aesthetic consumables, without any pharmaceutical stocks, ensuring a pure positioning. The index includes both leading companies with market capitalizations in the hundreds of billions and smaller companies below RMB 10 billion, offering high growth potential. Additionally, its top ten holdings account for approximately 44% of the index weight, with a balanced distribution that includes comprehensive platform leaders like Mindray Medical and United Imaging Healthcare, as well as highly elastic champions from various sub-sectors.
From a valuation perspective, Wind data indicates that as of April 21, 2026, the medical device sector's price-to-earnings (PE) ratio is around 32 times, positioned at the 40th percentile of its valuation range over the past five years. Institutional holdings of A-share medical device stocks account for about 1.03% of the total A-share market capitalization, which is below the historical standard allocation of 1.07%, reverting to levels seen just before the previous medical device market upswing in 2018, indicating considerable room for sector recovery. Against the backdrop of easing volume-based procurement expectations and improvements in equipment bidding, sub-sectors such as consumables and equipment are expected to see dual recovery in both performance and valuation.
The medical device industry is currently experiencing the convergence of multiple positive drivers. On the policy front, the most intense phase of volume-based procurement impact has passed. In 2025, the National Healthcare Security Administration explicitly stated that "winning bids in centralized procurement will no longer be based solely on the lowest price," with rules becoming more moderate. The National Medical Products Administration has implemented special innovation reviews for "domestically pioneered, internationally leading" products, signaling an industry shift from "generic substitution" to "innovation-driven" development. These marginal policy improvements have opened up space for industry recovery.
On the demand side, the diagnosis, treatment, and rehabilitation needs driven by a population of 220 million elderly continue to grow, coupled with medical equipment renewal policies. By 2027, investment scale in medical equipment is projected to expand by over 25% compared to 2023. While domestic demand remains stable with an upward trend, overseas expansion is also accelerating. Data from the General Administration of Customs shows that medical device exports reached approximately RMB 149.5 billion in 2025, a year-on-year increase of 6.6%, with growth further accelerating to 8.8% in the first quarter of this year. Leading companies have upgraded from distribution to localized operations. Notably, cutting-edge technologies such as brain-computer interfaces, surgical robots, and AI in healthcare are expanding the industry's potential, with 2026 considered a critical validation period for the commercial implementation of AI in healthcare.
In summary, policy support, demand underpinning, accelerated overseas expansion, and technological catalysis are collectively driving the medical device industry into a new cycle of development.
In the layout of popular sectors, the quantitative strength and product experience of the management team are important considerations for investors when selecting ETFs. The Medical Device ETF Fullgoal is to be managed by fund manager Liu Haiyan, who previously served as an analyst in the quantitative asset allocation group at Industrial Securities and joined Fullgoal Fund in 2025. Currently, she manages several index funds including the Big Data ETF Fullgoal and Logistics ETF Fullgoal, possessing considerable quantitative investment research expertise.
The fund manager, Fullgoal Fund, is one of China's first "Top Ten" public fund companies and has been deeply engaged in the field of index quantitative investment for over 16 years. The quantitative investment team is led by Dr. Li Xiaowei, the company's deputy general manager, and comprises over 20 investment research professionals with an average industry experience exceeding 11 years. Their business scope covers a variety of product portfolios including public funds, specialized accounts, pension funds, and overseas investments, with extensive experience in cross-asset and multi-strategy management. The profound experience of this quantitative powerhouse provides solid assurance for the efficient operation of the new product.
In terms of product layout, Fullgoal Fund has been deeply involved in the ETF field for many years with a comprehensive product portfolio. Wind data shows that as of the end of April 2026, Fullgoal Fund manages a total of 88 ETF products and 58 ETF feeder funds, with product lines covering leading series, industry themes, broad-based, and multi-asset ETFs. Among these, the leading series ETFs include Military Industry Leaders ETF Fullgoal, Consumption 50 ETF Fullgoal, and Chemicals ETF Fullgoal. Thematic ETFs comprehensively cover sectors such as consumption, technology manufacturing, healthcare, finance, and cyclical industries, with products like Smart Car ETF Fullgoal, Domestic Brands ETF Fullgoal, and Tourism ETF Fullgoal being among the first ETFs tracking relevant market-wide indices. In broad-based ETFs, Fullgoal Fund offers the first ETF tracking the Shanghai Stock Exchange Composite Index, the SSE Composite Index ETF Fullgoal, and among the first batch tracking the CSI A500 Index, the CSI A500 ETF Fullgoal. Fullgoal Fund is committed to creating diversified, full-spectrum asset allocation tools for investors.
Currently, the medical device industry is supported by four key drivers: policy, demand, overseas expansion, and technology. The issuance of the Medical Device ETF Fullgoal (159056) not only provides investors with a convenient allocation option but also further enriches Fullgoal Fund's ETF product matrix in the healthcare and medical sector.