China's 11 government departments jointly issued an action plan to strengthen grassroots traditional Chinese medicine services, aiming to establish a 15-minute TCM service circle by 2030. Separately, Zhongji Innolight's chairman proposed a share buyback of RMB 4 billion to RMB 8 billion. BOE A's controlling shareholder plans to increase holdings by RMB 500 million to RMB 1 billion, and Hailiang's controlling shareholder by RMB 600 million to RMB 1 billion. Since July, the TCM sector index gained 10.22% while the Shanghai Composite fell 6.87%. Stocks such as Longsheng surged 101.27%, Zhenbaodao rose 57.08%, and others gained over 20%. Zhongji Innolight fell 28.5% since July, BOE A dropped 35.71%, and Hailiang declined 26.09%.
In the first half of 2026, China's innovative drug out-licensing reached 81 deals valued at about $110 billion, already 80% of the full-year 2025 total. Meanwhile, 38 Class 1 innovative drugs were approved for market, including 11 with new targets and mechanisms, all domestically developed. Chinese companies accounted for eight of the top ten global pharmaceutical deals, and total deal value represented about 70% of global M&A. The period also saw the first AI-discovered drug enter Phase III trials in China.
In the first half of 2026, China's pharmaceutical distribution industry recorded a market size of about 1.54 trillion RMB, up approximately 4% year on year. The sector is accelerating its transformation toward intensification and specialization. High-end cold chain logistics has emerged as a profit growth driver, with leading enterprises deploying multi-temperature zone smart warehouses nationwide. As digital and intelligent upgrades become widespread, AI scheduling, unmanned warehouses, and full-chain temperature and humidity tracking have become standard.
A-share medical services index rose over 4% on July 27 as multiple drug firms, including ST Wanbang, received registration certificates. Wanbang Pharmaceutical surged over 13%, while several other stocks gained over 6%. The National Administration of Traditional Chinese Medicine and the National Development and Reform Commission issued the 15th Five-Year Plan for TCM revitalization, covering the 2026-2030 period.