Healthcare Sector Buzz: SXYL’s Surge Amidst Policy Optimizations and Market Dynamics

In a remarkable turn of events, the healthcare sector, particularly the medical equipment sub-sector, has witnessed a significant surge, with SXYL (三鑫医疗) at the forefront. On August 12, 2025, SXYL’s stock soared by 20% to hit a trading halt, marking a notable moment in the market. This surge is part of a broader trend where the medical equipment ETF fund (159797) saw an increase of over 2%, attracting net purchases of 12 million shares for the fifth consecutive day. The spotlight has been on brain-machine interface stocks, with SXYL leading the charge, followed by notable gains from Seno Medical, LePu Medical, and MaiRui Medical.

The catalyst behind this surge can be traced back to an announcement on August 7, 2025, where seven departments jointly released guidelines to foster innovation and development in the brain-machine interface industry. These guidelines set ambitious targets for 2027 and 2030, outlining five key tasks and 17 specific measures to propel the industry forward. This move is seen as a clear signal of policy optimization and a revival in performance for the medical equipment sector.

SXYL’s recent performance is particularly noteworthy. In just four trading days, the company achieved three consecutive 20% trading halts. This momentum was further bolstered by the announcement that its COMETIU self-expanding intracranial drug-coated stent system received FDA breakthrough medical device designation, marking a significant milestone as the first of its kind for intracranial atherosclerotic stenosis treatment.

The company’s half-year report for 2025 revealed a robust financial performance, with a 10.83% increase in business revenue to 7.61 billion yuan and an 8.35% rise in net profit attributable to shareholders, amounting to 1.15 billion yuan. Additionally, SXYL announced plans to issue convertible corporate bonds, aiming to raise up to 5.3 billion yuan for various hemodialysis-related projects and to bolster working capital.

Analysts from CITIC Securities and Guotai Junan Securities have highlighted the turning point for the medical equipment sector, driven by policy support for high-end medical equipment innovation and a shift towards global expansion. The sector is poised for valuation and performance recovery, with a focus on high-end medical equipment innovation and international business growth.

The medical equipment sector’s pivot is underscored by the success of innovative drugs, which has heightened interest in medical equipment. The sector is expected to leverage China’s engineering and manufacturing strengths to produce globally competitive products. The high success rate of medical equipment R&D, coupled with lower failure risks and fewer patent cliffs, positions leading companies for sustained growth.

In summary, SXYL’s remarkable performance and the broader medical equipment sector’s resurgence are indicative of a strategic shift towards innovation, policy optimization, and global expansion. With the sector at a turning point, the future looks promising for companies like SXYL, poised to lead the charge in the global medical equipment landscape.