The revaluation of medical device value is underway, with AI healthcare and brain-computer interfaces igniting new engines. Medical Device ETF (159898) rises over 1.5%!

After the holiday, the first trading day, the medical device sector continued the rebound action seen before the holiday. As of the time of this writing, Medical Device ETF China Merchants (159898) was up 1.53% during the day, with net capital inflows for two consecutive days. In terms of constituent stocks, Inke Medical and Sinopharm Central Red Medical surged 11%; Omec Medical and Biosun Medical rose more than 9%; and many other stocks, including Jinan Anke Medical, Guangzhou Coron Hao Bio, and Jimin Health, jumped as well.

Huarong Securities pointed out that innovation in medical device products and going global may bring the industry a double recovery in both performance and valuation.

Since 2019, the National Healthcare Security Administration has organized 6 rounds of centralized procurement for high-value medical consumables, covering multiple high-value consumable areas such as coronary stents, drug-coated balloons, orthopedic consumables, and dental implant system products. As the coverage of high-value consumables centralized procurement continues to expand, procurement pressure is gradually easing, and related companies’ performance is expected to return one after another to a fast-growth track.

Among them, Cyno Medical’s COMETIU stent and COMEX balloon microcatheter received FDA breakthrough medical device designation in 2025, becoming the first neuro-interventional device product in China to receive FDA breakthrough medical device designation. MicroPort MedTech’s wholly owned subsidiary Shanghai MicroPort’s Firesorb bioresorbable fully biodegradable absorbable cardiac stent was approved for marketing by NMPA in 2024, becoming the world’s first new-generation bioresorbable fully biodegradable absorbable cardiac stent.

Medical equipment, meanwhile, is entering a turning point driven by both technological upgrades and internationalization.

In the first half of 2025, as equipment renewal starts to roll out at scale, together with anti-corruption becoming normalized, accumulated procurement demand in the medical equipment sector was released. China’s medical equipment tendering and bidding scale has shown recovery-like growth. In the third quarter of 2025, related companies saw a turnaround in the revenue side. In addition, overseas prospects are broad. As China’s medical equipment industrial level continues to improve, related companies’ overseas localization deployments are being implemented continuously, and the internationalization process for domestic medical equipment is accelerating.

At present, the overseas market has become a must-win battleground for leading domestic IVD companies. With the development of overseas business, some manufacturers such as Mindray Medical and New Industries have already begun more in-depth local exploration. Combined with **AI medical care, **brain-computer interface emerging technologies, the industry is expected to undergo transformation.

The combination of AI with medical imaging, surgical robots, gene diagnostics, and other device tracks is driving the evolution of diagnosis and treatment toward precision, personalization, and intelligence. This provides new possibilities for breaking the “impossible triangle” in healthcare. The brain-computer interface is committed to building a direct communication pathway between the human brain and external devices. In serious medical fields, it brings new hope for motor function reconstruction for paralyzed patients; in mental illness fields, it provides entirely new neural modulation ideas for interventions in diseases such as depression and Alzheimer’s disease; and in non-medical fields, it also has broad application prospects.

Citing the view that in 2023 among downstream solution companies for China’s brain-computer interface, consumption, industry, education, and other non-medical industries together accounted for about 44%; consumption scenarios are relatively smaller in size in the short term, but in the long run, the explosive upside elasticity is large, and growth is optimistic.

According to materials, the Medical Device ETF China Merchants **** (159898) tracks the CSI All-Share Medical Devices Index. About 24% of the related companies have substantive deployments in brain-computer interfaces, giving it relatively strong layout advantages in frontier medical technologies. The index focuses mainly on the ChiNext Board and the STAR Market, covering three major directions: medical devices, medical consumables, and in vitro diagnostics, **,**100% focusing on the medical devices sub-segment sector. It may also present an opportunity as the sector’s cycle turns upward.

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