The Traditional Chinese Medicine (TCM) sector has received a significant policy boost. The Hong Kong Special Administrative Region government officially released the "Traditional Chinese Medicine Development Blueprint" today, outlining a comprehensive roadmap for advancing TCM development across five key areas, eight objectives, and 20 actionable measures.
Secretary for Health Prof. Lo Chung-mau emphasized that this inaugural blueprint aims to leverage TCM to enhance public healthcare services, improve health outcomes, and position Hong Kong as a global gateway for TCM.
Analysts note that the TCM industry is poised for recovery, with short-term base pressures easing and channel inventories clearing faster. Year-end demand rebound and subsequent fundamental improvements are anticipated.
**Hong Kong's Strategic Blueprint** The blueprint, published on December 18, sets forth one vision spanning five domains: TCM services, professional development, herbal medicine advancement, cultural preservation, and global expansion. Key objectives include: 1. Enhancing clinical services through technology integration. 2. Establishing cross-disciplinary healthcare collaboration. 3. Elevating TCM professional standards and education. 4. Strengthening herbal medicine quality control, including full GMP implementation. 5. Developing international TCM standards via government testing centers. 6. Driving innovation in research and industry. 7. Promoting TCM culture through public education. 8. Expanding global TCM outreach, positioning Hong Kong as an international hub.
Prof. Lo highlighted TCM's role as a cornerstone of Chinese heritage and Hong Kong's healthcare system, noting longstanding government support in regulation, training, and standardization.
**Sector Outlook and Market Perspectives** Recent developments underscore Hong Kong's growing TCM momentum. The 7th Greater Bay Area TCM Innovation Conference held earlier this month gathered 800 global experts to discuss modernization and standardization. Strategic partnerships were signed between Hong Kong Chinese Medicine Hospital and mainland/international institutions.
Brokerage insights: - **CITIC Securities**: Expects demand recovery by year-end, with valuation upside as fundamentals improve. Innovation may fuel secondary growth curves. - **Cinda Securities**: Notes Q3 2025 earnings improvements for select TCM stocks, with seasonal flu potentially boosting performance. National drug catalog updates could catalyze sector momentum. - **Huajin Securities**: Advocates focusing on "premium + innovation" themes—highlighting branded TCM products with pricing power and policy-backed novel TCM formulations. - **Everbright Securities**: Stresses clinical value as the core investment thesis, favoring innovative drugs and medical devices addressing unmet needs.
The blueprint marks a pivotal step in Hong Kong's ambition to become a global TCM leader while revitalizing industry prospects.
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