The “14th Five-year Plan” period has seen the accelerated formation of a new development paradigm featuring dual circulation, in which the domestic economic cycle plays a leading role while the international economic cycle remains its extension and supplement, and China’s biomedical market has ushered in a stage of high-quality development. Meanwhile, the new development stage has higher requirements on the biomedical industry, which finds it urgent to expedite the innovation-driven transformation so as to bolster the creation of the new development paradigm. Today, the Shanghai Stock Exchange (SSE) and the China Securities Index Co., Ltd. (CSI) officially announced the relevant arrangements for the release of the SSE STAR Market Biomedicine Index ( the STAR Market Biomedicine Index for short). After the screening for liquidity, the STAR Market Biomedicine Index is to include the stocks of 50 companies with large market capitalization in the biomedicine, biomedical engineering and other biological industries as index constituents. The 5 stocks with the largest weights are Shanghai Junshi Biosciences Co., Ltd., Zhejiang Orient Gene Biotech Co., Ltd., Cansino Biologics Inc., Shanghai Medicilon Inc. and Qingdao Haier Biomedical Co., Ltd., with a combined weight of 33%.
As a national strategic emerging industry as well as one of the STAR Market-supported core sectors, the biomedical industry has grown in scale and features, and numerous typical biomedical companies have been attracted to the STAR Market for listing. The biomedical industry is also one of the industry themes with the most outstanding overall profitability on the STAR Market. The latest financial reports show that in 2021, the companies in the biomedical industry on the STAR Market maintained a rapid growth rate in performance with a year-on-year increase of 54% (without counting losses). The median gross profit margin and net profit margin ranked first among all industries, standing at 73% and 24% respectively.
As another major industry-themed index representing the STAR Market, following the STAR Market 50 Index and the STAR Next Generation IT Index, the STAR Market Biomedicine Index will keep expanding the index system of the STAR Market. The constituents of the STAR Market Biomedicine Index feature an overall attribute of key and core technology, as the new medicine companies cover cancer, tumor, immune system diseases, infectious diseases and other therapeutic fields; the companies specializing in IVD and vaccines have been actively fighting on the front line against the pandemic with their expertise; the index constituents include Zhejiang Orient Gene Biotech Co., Ltd. and other leading companies with an annual revenue of over RMB 10 billion, as well as Cansino Biologics Inc. and other innovative drug companies that have been listed in accordance with the fifth set of standards for the STAR Market, demonstrating the empowering effect of the inclusiveness of the STAR Market system. Going forward, the SSE will continue to improve the STAR Market index system so as to provide the market with more performance benchmarks and investment targets from various perspectives.
Attachment:
Announcement on the Release of the SSE STAR Market Biomedicine Index
