Six Provinces and Cities Take Action: New Quality Productive Forces Propel High-Potential Medical Sector onto the Investment Spotlight

Recently, "new quality productive forces" has become a buzzword, with the related concept stock index rising by approximately20%。

New-quality productive forces are an advanced form of productivity driven by revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading. Their fundamental connotation lies in the qualitative transformation of laborers, means of labor, subjects of labor, and their optimized combination; their core hallmark is the enhancement of total factor productivity; and their primary characteristics are high technology, high efficiency, and high quality.

In fact,Stock prices represent only the first wave of impact from new quality productive forces, which will subsequently generate broader and more profound effects.. For example, as of now, provincial and municipal governments in Beijing, Shanghai, Guangdong, Zhejiang, Jiangsu, Chongqing, and other regions have released their government work reports, proposing to vigorously develop new quality productive forces.

Meanwhile, multiple technology departments and local governments have resolved to strategically position themselves in future industries and strengthen the cultivation of new quality productive forces. For instance, the “Implementation Opinions on Promoting Innovation and Development of Future Industries,” issued by the Ministry of Industry and Information Technology and other departments, states that vigorously developing future industries is a strategic choice for leading technological progress, driving industrial upgrading, and fostering new quality productive forces. The future industries outlined in the Opinions encompass six major directions: future manufacturing, future information, future materials, future energy, future space, and future health.

Furthermore, multiple regions have already issued supporting policies to foster the development of new-quality productive forces. Numerous investment institutions are determined to channel capital into emerging sectors that align with national needs and receive state support. A significant influx of talent is also expected to pursue entrepreneurship or employment in these related fields.

From policy to social capital, from talent to the innovation ecosystem, new quality productive forces will influence every aspect of industrial development and inevitably drive the upgrading and transformation of traditional industries. During this period, enterprises that seize opportunities will break away from traditional economic growth models and achieve rapid development, while those making erroneous strategic choices will be eliminated by the times.

How can different regions develop new quality productive forces at present? What impact will new quality productive forces have on the healthcare industry? How will new quality productive forces help related industries and enterprises iterate and upgrade? Which niche sectors are associated with new quality productive forces?

The "New Quality Productive Forces" frequently mentioned during the Two Sessions are spawning new opportunities.

Recently, provinces and municipalities including Beijing, Shanghai, Guangdong, Chongqing, Zhejiang, and Jiangsu have all proposed in their sequentially released 2024 Government Work Reports to vigorously develop new quality productive forces. Different provinces and municipalities have chosen to cultivate different emerging industries.

Among them, Beijing is promoting the development of emerging industries such as new energy, new materials, commercial aerospace, and the low-altitude economy, while opening up new tracks in quantum technology, life sciences, and 6G; Guangdong is making forward-looking layouts for future industries including 6G, quantum technology, life sciences, and humanoid robots; Chongqing is advancing the construction of a satellite internet industrial park, deepening the large-scale application of the BeiDou Navigation Satellite System and the development of its supporting industries, and accelerating the exploration of new fields and tracks such as the low-altitude economy and biomanufacturing; Jiangsu is pioneering new industrial tracks in future networks, quantum technology, life sciences, hydrogen energy and novel energy storage, as well as deep-sea, deep-earth, and aerospace sectors.

Beyond macro-level industry planning, some local governments have already formulated specific policies to accelerate the development of new quality productive forces. For instance, Putuo District in Shanghai, Haidian District in Beijing, and Yuhang District in Hangzhou, Zhejiang Province, have issued specialized policies to support the growth of innovative enterprises and foster new quality productive forces.

Among these initiatives, the Wuning Innovation Community in Putuo District, Shanghai, has planned to “conscientiously accomplish ten key tasks” in 2024. These include compiling and releasing a batch of projects under the “open competition mechanism” (Jiebang Guashuai), launching the construction of several concept verification centers, and establishing a number of high-level talent aggregation platforms. The Wuning Innovation Community also plans to regularly identify and collate the latest scientific and technological achievements as well as R&D needs from universities, research institutes, and leading enterprises, thereby facilitating intelligent matching and efficient对接 between research outcomes and market demands.

Meanwhile, Putuo District in Shanghai will provide 3,000 square meters of space at “Innovation Lane” to support high-growth startups and teams that align with industrial policy priorities, offering assistance through equity investments, rent subsidies, and other forms of support.

In addition, Shanghai’s Putuo District has formulated special policies focusing on five key areas: serving as a source of scientific and technological innovation, fostering collaborative innovation, promoting entrepreneurship and innovation, attracting and nurturing talent, and cultivating an innovative ecosystem. These policies include support for the establishment of concept verification centers, the development of new-type R&D institutions, collaborative breakthroughs by innovation entities, entrepreneurial ventures, and the introduction of talent and teams. Through these measures, the district provides comprehensive, multi-dimensional support to innovative talent across research, laboratory facilities, funding, entrepreneurship, talent development, industrial chain services, and brand building.

Not only is there comprehensive policy support, but the state is also guiding social capital into new industries to accelerate the formation of new quality productive forces. Some investment institutions have also indicated that they will invest in emerging sectors that are needed and supported by the state. Industries, sectors, and enterprises associated with new quality productive forces will be poised to seize significant opportunities.

Currently, multiple documents have pointed out thatThe key task in developing new quality productive forces is to foster emerging industries. With support focused on priority tasks and tilted resource allocation, multiple sub-sectors within the healthcare industry are expected to seize significant growth opportunities. However, the surge across these sectors is not merely driven by the concept of new quality productive forces; at their core, they represent emerging tracks that propel industrial upgrading and disrupt existing market landscapes.

“Amid market turbulence and volatility, the concept of ‘new-quality productive forces’ has charted a course for the future of the healthcare industry and provided clear direction for entrepreneurs and investors: have the courage to invest in innovative technologies, talent capable of translating such innovations into practice, and industries undergoing profound transformation,” said Dr. Zou Guowen, Founder of Kaicheng Capital.

Based on our analysis, a variety of industries and innovative technologies—including scientific instruments, automated laboratory workflows, new materials, the upstream segment of life sciences and medical devices, pharmaceutical manufacturing equipment and device production machinery, medical AI, and 3D printing—will benefit from the concept of “new quality productive forces” and accelerate their growth.

As the concept of new quality productive forces takes root,Scientific Instrument IndustryPoised to receive focused cultivation. Scientific instruments are primarily utilized in R&D and production processes, serving as essential tools for achieving technological innovation and progress, and will play a pivotal role in fostering new quality productive forces. However, at the current stage, the scientific instrument market is monopolized by overseas brands, with domestically produced products occupying an extremely disadvantaged position.

However, a cohort of innovative enterprises is now tackling challenges in scientific instrumentation, striving to resolve critical bottlenecks in this field. Domestic companies such as MGI Tech, Sailun Medical, Qitan Technology, SenaBio, Zhenmai Biotechnology, and Annoroad have all commercialized their sequencer products, while Hanchen Guangyi has successfully broken the monopoly of imported brands with its core biological breeding equipment.

Dr. Zou Guowen, founder of Kaicheng Capital, added, “Beyond sequencers, there are multiple innovative enterprises developing high-end, specialized laboratory analytical instruments, aiming to provide better research platforms for domestic research institutes. Among them,”“Panuo Instruments is one of the largest domestically based, privately held companies engaged in the independent R&D and manufacturing of scientific research instruments, providing foundational support for pharmaceutical and life sciences research.”

Assembly LineRepresenting new quality productive forces, it will accelerate its development. The assembly line, namelyTotal Laboratory Automation (TLA), different analytical instruments can be integrated with pre-analytical and post-analytical laboratory systems via automated transport tracks, forming an assembly-line workflow under the centralized control of an information network, thereby achieving process optimization and maximum efficiency.

Compared with previous manual operations, semi-automated assisted operations, and modular automated operations, total laboratory automation (TLA) systems can achieve full-process automation from sample loading to testing and output. These systems can meet approximately 70% of the testing demands of tertiary hospitals, effectively alleviate laboratory congestion, and significantly improve testing efficiency in tertiary hospitals.

Historically, the market for laboratory automation total laboratory automation (TLA) systems in China was long dominated by multinational giants such as Roche, Abbott, Beckman Coulter, and Siemens. However, thanks to sustained investment and continuous breakthroughs by domestic in vitro diagnostics (IVD) companies, Chinese-made TLA systems have successfully entered the market. Companies including Mindray Medical, Autobio Diagnostics, Tellgen Corporation, Dirui Industrial, Snibe Co., Ltd., YHLO Biotech, Sinomeds, and Maccura Biotechnology have all launched their own TLA product lines.

New MaterialsIt is an emerging track in which the science and technology departments and local governments have made significant investments to develop new quality productive forces. For example, the 2024 Beijing Government Work Report proposed accelerating the development of new quality productive forces, strengthening the research and development of original innovative drugs and high-end medical devices, and cultivating new growth points in the pharmaceutical and health industries such as biomanufacturing. Promoting new energy,New Materials, commercial aerospace, low-altitude economy, and other strategic emerging industries, while opening up new tracks in future industries such as quantum technology, life sciences, and 6G.

In the medical field, every breakthrough in medical materials—from medical cotton and metals to medical polymers—has triggered significant industry transformations, spurring the development of new medical devices and revitalizing traditional ones. This demonstrates that materials serve as a key indicator of progress in the healthcare industry. While the importance of new materials is self-evident, the medical materials sector is characterized by high investment requirements, substantial risks, multidisciplinary technological complexity, and lengthy R&D cycles, resulting in exceptionally high entry barriers. Consequently, only a few innovative enterprises in China have strategically positioned themselves to tackle challenges in medical material development.

Among them, Meichuang Medical achieved a breakthrough in the field of medical-grade implantable ePTFE, breaking the monopoly held by overseas companies; Luer New Materials mastered phase-change cooling material technology, providing China with domestically produced cooling materials for the cold chain logistics sector and enhancing the service capabilities of China’s cold chain from the source; Qingyun New Materials successfully achieved large-scale mass production of flash-spun ultra-materials, realizing independent innovation and localization of highly scarce materials; Pulimon developed biodegradable polymer materials and applied them to product lines including medical consumables and consumer aesthetic medicine.

Upstream Sector of Life Sciences and Medical DevicesIt is also a key area for cultivation. For instance, while the cell therapy industry boasts broad prospects, its high treatment costs necessitate in-depth research into upstream service providers in the biologics and cell therapy sectors to build foundational capabilities for the industry, thereby further reducing the cost of cell and gene therapies.

In the medical device industry, most upstream core components still need to be imported from overseas. In response, some domestic innovative enterprises are focusing on upstream core components, striving to break through bottleneck challenges. For example:Through long-term independent research and development, Mill Medical provides the industry withCore Components for Minimally Invasive Laser Medical Devices; Shan Si Wei has strengthened its R&D efforts and is now capable of providing chips, components, and customized solutions.

Furthermore,Pharmaceutical Equipment, Medical Device Production Equipment (Production Lines)They are also embracing development opportunities. Currently, innovative companies such as Bingjing Intelligence, Tingsheng Technology, Dongwan Biotech, and Xinling Maide have established automated production lines, manufacturing products including intracardiac echocardiography systems, medical dressings, gels, freeze-dried powders, sprays, surgical instruments, and polymer heart valves. With the growing adoption of the concept of “new quality productive forces,” automated production lines in the pharmaceutical and medical device sectors are expected to accelerate their development.

Dr. Zou Guowen, Founder of Kaicheng Capital, stated, “New quality productive forces often emerge systematically. Following certain technological breakthroughs, a series of related industries tend to undergo iterative upgrades, mutually reinforcing one another and giving rise to new clusters or ecosystems.”

AI TechnologyIt will accelerate the emergence of new-quality productive forces. In previous documents referencing new-quality productive forces, digitalization and intelligence have been frequently highlighted. AI technology will foster these new-quality productive forces by shortening the learning curve for healthcare professionals, enhancing clinical efficiency, improving the precision of clinical diagnosis and treatment, and enriching clinical resources.

For example, in the past, due to factors such as complex imaging and limited clarity of ultrasound images, sonographers had to work long hours under high intensity to generate ultrasound reports. Today, empowered by AI technology, the efficiency of sonographers has significantly improved. Taking IceCrystal Intelligence as an example, it has developed an intelligent ICE (Intracardiac Echocardiography) imaging platform. Its HD-ICE system employs a novel imaging algorithm that substantially enhances image resolution, increasing spatial resolution by more than 10-fold and temporal resolution by more than 3-fold.

In fact, AI technology is also applied in clinical scenarios such as pathology, anesthesiology, medical imaging, and radiotherapy. For instance, Landin Medical utilizes artificial intelligence combined with big data cloud platform technology for cancer screening, and its AI-based cervical cancer screening technology has already achieved commercialization. Compared with traditional screening methods, AI-based cervical cancer screening offers high efficiency, high standards, low cost, and ease of implementation, facilitating large-scale cervical cancer screening in primary healthcare institutions.

3D Printing TechnologyIt will help foster the development of new-quality productive forces. The intelligent, digital, and flexible characteristics of 3D printing technology align precisely with the requirements of new-quality productive forces. For manufacturers, 3D printing eliminates the need for molds and shortens process workflows, significantly reducing the research, development, and manufacturing cycles for new products. Additionally, 3D printing enables the customized production of personalized medical devices tailored to individual patient needs, without incurring additional manufacturing costs due to customization.

Nowadays, some domestic companies have applied 3D printing technology to fields such as orthopedics and dentistry. For instance, the trabecular total hip joint independently developed by Justar Medical features trabecular structures on both the acetabular and femoral sides, constructed using 3D metal printing technology. This innovation has achieved a qualitative improvement in bone ingrowth performance, overcome the mechanical strength issues of printed components, and perfectly combined osteoinductive properties with mechanical strength.

Meanwhile, other companies have achieved breakthroughs in ultra-high-precision 3D printing technology, applying it to the microscopic domain. Among them, Prismlab has improved its printing precision to 2 micrometers, fabricating hierarchically vascularized organ-on-a-chip models. Relying on its independently developed micron-level printing technology, Yunyao Shenwei is capable of printing and producing key precision metal components, such as parts for interventional products and core components of surgical robots.

Given the innovative and groundbreaking nature of 3D printing technology, numerous investment firms are bullish on the sector. For instance, Qiming Venture Partners has invested in multiple 3D printing companies, including Just Medical, Prismlab, and Sainuo Dynamics.

In developing new quality productive forces, in addition to technological innovation, there is a need for corresponding innovative talent. Dr. Zou Guowen, founder of Kaicheng Capital, added, “Transforming technological innovation into productive forces requires specific types of talent: on one hand, individuals skilled in technological innovation, and on the other, those capable of truly translating scientific and technological achievements into tangible productive forces. These professionals possess expertise in technology, products, markets, and customer needs, while also effectively managing relationships with investors, government entities, industry peers, and other stakeholders. They can be regarded as a new generation of entrepreneurs.”