Many investors can clearly sense that in the past four years, a large number of medical device companies have listed on the A-share market. Leading companies in the sub-sectors of IVD (in vitro diagnosis), medical equipment, and medical consumables have all stepped onto the stage. According to Wind data, since 2020, 53 medical device companies have listed on the A-share market. In the past year, the medical device sector has witnessed a booming market. As of the end of the third quarter of this year, the share of the Medical Device ETF (159883, OF) has increased by 88% year-on-year. A series of innovative enterprises focusing on high-end medical devices have emerged in A-share, including imaging giant Mindray Medical and gene testing equipment leader BGI Group. 

The reporter from "Each Day Economic News" noticed that this wave of IPOs by medical device companies is related to the rapid development of the entire industry. Under the favorable policy environment that encourages innovation, the Chinese medical device industry has gradually shed its label of "low quality and low price", and in some fields, it has achieved domestic substitution and transformation from the mid-to-low end. 

However, we must also be aware that there are still shortcomings in the high-end sector of China's medical device industry. Continued innovation is necessary to achieve the vision of upgrading from the mid-to-low-end market to the high-end market. Additionally, some sectors that experienced explosive growth during the pandemic also require rational assessment based on their long-term growth potential and development trends. 

Medical device companies are experiencing a surge in listing activities.

On October 16, 2018, the "leader" of domestic medical devices, Mindray Medical, returned to the A-share market and listed on the ChiNext. Since then, its stock price and market value have soared, reaching a peak market value of 500 billion yuan, surpassing Wenshi Co., Ltd. and topping the ChiNext. With the listing of Mindray Medical, the medical device sector has also received attention from the capital market under the leadership of the "leader". As shown in the figure below, starting from October 2018, the China Securities Medical Index (H30217, CSI) experienced a threefold rally at its peak (in July 2021). Over the past three years, it has achieved a cumulative increase of 21.90%, outperforming the Shenzhen 300 Index during the same period.