Major Release On January 24, 2022, Frost & Sullivan TradeGo LeadLeo Research Institute jointly authored the 'Investment Activity Report on the Issuance of 18A Biotech Companies in Hong Kong', which was officially released with Frost & Sullivan Frost & Sullivan (Shenzhen) Cloud Technology Co., Ltd.! Since the Hong Kong Exchange implemented listing reforms in 2018, Hong Kong has become Asia's largest and the world's second-largest biotech financing center. The Hong Kong government has identified biotechnology as one of the key areas for innovation technology to support the future development of the industry. The capital market plays a crucial role in the development of biotechnology and in transmitting positive social impacts. Hong Kong Stock Exchange 18A Biotech Companies' Issuance and Investment Activity Report Therefore, this report was born out of necessity. It is based on the analysis of 48 listed companies in Hong Kong and 23 biotech enterprises that have not yet issued their prospectuses but have submitted their filings. The report provides an in-depth discussion from various dimensions such as industry overview and pre- and post-capital market issuance data, making it highly valuable for shareholders, investors, and intermediary service institutions in the biotech sector.   Hong Kong Stock Exchange 18A Biotech Companies' Issuance and Investment Activity Report Table of Contents — Five Chapters in Total Chapter 1: A Panorama of 18A Biotech Companies Panorama - Total Panorama Panoramic view - by site of onset Panoramic view - by indication (pharmaceutical companies) Panoramic view - by indication (medical device companies)   Chapter 2: Industry Analysis of 18A Biotechnology Companies Pharmaceutical track Medical device track Frontier medical technology   Chapter 3: Issuance Data of 18A Biotech Company Pre-issue data Issued data Post-issue data intermediary agency cornerstone investor   Chapter 4: Indexes of Biotech Companies Listed on the NASDAQ 18A and Outlook for Listing Jielibio Technology Index Series Compilation Scheme Operation Performance of Jile Biology Technology Index Series Prospects for the Listing of BioTech Company 18A   Chapter 5: 18A Biotech Company Homepage Display the corporate pages of 18A48 companies, including company introductions, R&D pipelines, issuance data, stock price trends, etc.   Hong Kong Stock Exchange 18A Biotech Companies' Issuance and Investment Activity Report From planning, writing to finally printing into a book, the duration More than three months Time, nearly 300 pages Proofread and corrected Dozens of times The number of contributors involved in compilation is nearly 30 people Participated in nearly Forty . During the compilation process, it has received even more HSBC Global Banking Mr. Meng Yi, General Manager and Vice Chairman of China Region, Ping An Capital Mr. Zhou Yibang, a member of the Listing Committee of the Hong Kong Stock Exchange (Hong Kong) Limited, CMB International Mr Lau Shou-kin, Deputy Chief Executive Officer of (Holdings) Limited, Credit Suisse Securities Mr. Tu Lei, General Manager of (China) Co., Ltd., EY Global Greater China Accounting Firm Jingtian Gongcheng Law Firm , Frost & Sullivan Comments and messages from colleagues in the medical team and other professionals on revisions/supplements. The field of biotechnology is vast and knowledge is as endless as the sea, with new technologies and discoveries emerging daily. Humanity's demand for health is boundless, and the success of health research requires belief to be seen; biotechnology is related to the future of humanity. The motivation for writing, researching, and analyzing over more than 100 days and nights is to provide assistance to future issuers, investors in the pharmaceutical industry, and intermediary institutions. This aim is to enable them to better devote themselves to the tireless pursuit of life sciences, thereby seeking well-being for all mankind.   For the original report, please send an email to: livereport@sullivantelecloud.com   "18A Biotechnology Company's Issuance and Investment Activity Report" Editor's Introduction ▶ Frost & Sullivan（Shenzhen）Cloud Technology Co., Ltd. Founded jointly by the mainland subsidiaries of Frost & Sullivan Group and TradeGo. The cloud technology company provides one-stop full-cycle investor relations management and comprehensive investment and financing services for Hong Kong-listed companies planning to go public or those that are already listed, including precise promotional roadshows and public offerings. It is dedicated to the dissemination and realization of corporate value.   ▶ Frost & Sullivan Limited A global growth consulting firm, Frost & Sullivan specializes in the global capital markets and corporate consulting services. It provides a comprehensive range of investment and financing as well as various other professional consulting services for enterprises, including due diligence services, valuation services, assessment services, strategic consulting, management consulting, planning consulting, technical consulting, financial consulting, industry consulting, etc.   ▶ TradeGo Financial Technology Co., Ltd. TradeGo (08017.HK) provides an integrated terminal product for market and trading across over 140 Hong Kong brokers, serving more than 1.5 million Hong Kong stock trading users. TradeGo's proprietary APP has gathered over 60% of new investors in the IPO market and occupies an important position in assisting with public offerings on the Hong Kong capital market.   ▶ LeadLeo International Ltd. LeadLeo is a leading original corporate research content platform and new enterprise service provider in China. Leveraging its industry-leading corporate research content production capabilities, as well as experience in content operation and management, it has built a series of research products and solutions based on core technologies. With the core goal of helping enterprises accelerate the exploration, dissemination, and enhancement of capital value, LeadLeo comprehensively empowers over 50,000 professional users and is committed to becoming 'China's largest consulting cloud'.

2021 is the beginning year of the country's 14th Five-Year Plan and also marks a new starting point for the golden decade of the 'Healthy China 2030' strategy. Amid the ongoing two-year rampage of the COVID-19 pandemic, the pharmaceutical and healthcare industry has become a new high ground for global competition. Globally, the number of IPOs in the healthcare industry in 2021 was second only to the technology sector. Domestically, in 2021, a total of 38 pharmaceutical companies successfully listed on the A-share Sci-Tech Innovation Board, far exceeding the 28 companies in 2020 and the 16 companies in 2019. On the Hong Kong Stock Exchange, a total of 20 non-profit biotech companies successfully went public in Hong Kong in 2021, with over 20 healthcare industry companies having submitted IPO applications, more than 90% of which are from mainland China. Focusing on the key points and difficulties in analyzing the biopharmaceutical investment and financing market, January 20, 2022. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China Region, was invited by TBio to share with everyone a summary of the domestic and international biopharmaceutical investment and financing markets in 2021 and future prospects at the TBio's live medical course. During the live broadcast, Mao Hua first conducted a detailed analysis of the investment and financing status of the global and Chinese biopharmaceutical industries in 2021. He pointed out that the global equity financing scale increased steadily in 2021, with China consistently ranking second over the past two years. In the healthcare sector, between 2020 and 2021, the number of listed companies increased in all major global sectors, with A shares being particularly favored. With the full implementation of the A-share registration system and market policy reforms, the A-share market will have greater attractiveness compared to the Hong Kong stock market in the future, and it is foreseeable that more pharmaceutical companies will choose to raise funds on the A-share market. In the Chinese A-share market, the IPO financing scale and number of IPO companies in the healthcare industry rank third and fifth among all industries, respectively. Mao Hua said that in terms of the review process during the listing process, medical and health enterprises vary in procedures and timelines across different sectors. The average number of days for review on the A-share Sci-Tech Innovation Board and Growth Enterprise Market is 300 days and 374 days respectively, far higher than the 128 days on the Hong Kong stock market and the 31 days on the US stock market. Moreover, after the review phase is completed, A-share companies also need to pass a meeting of the Issuance Examination Committee/Listing Committee, making the process more complex. In terms of the valuation level after listing, A-share medical and health enterprises, especially those without profitability, are higher than those on the US and Hong Kong stock markets. Looking at the stock price on the listing day in the second half of the year, Hong Kong-listed unprofitable biotech companies have a high initial-day underpricing rate, accounting for 82% of all initial-day underpricing companies. A-share companies, affected by policies, have seen a reduction in initial-day underpricing; in terms of average daily trading volume after listing, in 2021, the trading activity of the A-share medical and health industry, both as a whole sector and among unprofitable biotech companies, far exceeded that of the Hong Kong stock market. According to a survey by Frost & Sullivan, the performance of the primary market in the biopharmaceutical sector is also remarkable both in China and globally. The COVID-19 pandemic has significantly driven investment and financing in the biopharmaceutical field. In 2021, there were a total of 1,273 investment and financing events in the global biopharmaceutical sector, involving a total amount of 369.91 billion yuan, an increase of 31.7% compared to 2020. 'Overall, the enthusiasm for investment and financing in the global biopharmaceutical sector remains at a high speed, with continuous growth in investment and financing amounts and an optimistic growth rate. It is expected that there will be further room for growth in 2022.' Mao Hua further added, 'In addition, within the biopharmaceutical industry chain, investment and financing in downstream pharmaceutical companies dominate, with small molecule and antibody drugs still accounting for the main proportion in China's primary investment and financing market for biopharmaceuticals. Investment and financing growth in innovative biotechnology fields is evident.' Mao Hua also shared the top cases of pharmaceutical investment and financing in China in 2021 - namely, the listing cases of Aibo Biotech and BeiGene. In August 2021, Aibo Biotech completed a $700 million Series C financing, setting a new record for primary market financing by Chinese pharmaceutical companies. On December 15, 2021, BeiGene was listed on the Sci-tech Innovation Board with a fundraising amount of 222 billion yuan, setting a new record for IPO fundraising by Chinese pharmaceutical companies. Subsequently, Mao Hua led the audience in a review of the key highlights of the biopharmaceutical market in 2021. Compared to 2020, there were not significant changes in the global top ten best-selling drugs for the first three quarters of 2021. However, affected by the COVID-19 pandemic, Pfizer's COVID mRNA vaccine made it onto the list and topped the chart, surpassing Humira, which had dominated the top spot for many years. Throughout 2021, biotech companies were active in financing, directly promoting R&D investment. Domestic biopharmaceutical companies also continued to increase their R&D investment to support innovation. BeiGene, the first star biotech company to go public on NASDAQ, Hong Kong stocks, and A shares, won the top spot for R&D innovation investment with the ample financial support brought by listing in three markets. At the same time, successful financing activities in both primary and secondary markets greatly fed back into the company's R&D layout, on one hand providing sufficient funds to introduce pipelines; on the other hand, more abundant funds also strengthened internal R&D, with self-developed products yielding results, and the total transaction volume of licensed-out products entering the 2 billion-dollar club. Data shows that in 2021, the National Medical Products Administration (NMPA) approved a total of 83 new drugs, reaching a new high since 2016, mainly including oncology and infectious disease drugs. Among them, there were 51 domestic new drugs and 32 imported ones; in terms of drug types, they included 38 chemical drugs, 33 biologics, and 12 traditional Chinese medicines, with a significant increase in the number of approvals for traditional Chinese medicines. In 2021, the US Food and Drug Administration (FDA) approved a total of 50 new drugs (excluding cell therapies and vaccines), including 36 new molecular entities and 14 new biological products. New drugs are still predominantly oncology drugs, accounting for 30%. A total of 34 new drugs were approved by the FDA for marketing under the 'Priority Review' program, including 27 new molecular entities and 7 new biological products. Twenty-six varieties have been granted the 'Orphan Drug' designation by the FDA, accounting for 52% of all approved new drugs. Finally, Mao Hua summarized that the COVID-19 pandemic has brought biopharmaceutical investment and financing to an unprecedented level of enthusiasm. The influx of hot money inevitably leads to crowded R&D and homogenized competition. However, a wave of homogenized innovation brought about by hot money has gradually shown signs of market decline, and only substantial innovation oriented towards clinical needs can become a new track for investment and financing. "Of course, we can all see that national policies are guiding Chinese pharmaceutical companies towards innovation. Under the policy dividend, the level of domestic innovative drugs is continuously improving, and the R&D level of innovative drugs is growing day by day. On the other hand, the development of COVID-19 vaccines is also driving rapid technological progress in the industry. It is believed that in 2022, China's biopharmaceutical industry will become increasingly integrated into the global innovation pulse," said Mao Hua.

Frost & Sullivan insights According to analysts, the growing technical expertise on China's Digital Silk Road is expected to become a benchmark for other regions around the world to emulate. The Belt and Road Initiative (BRI) in China has already embarked on the digital Silk Road before other parts of the world began discussing interconnected smart cities and technology-driven solutions. As China continues to expand its digital footprint in multiple fields such as cloud computing, 5G, surveillance technology, and virtual currencies, observers believe that China's technological leadership position in certain areas is gradually strengthening. How will China's dominant position in future technology fields such as artificial intelligence, 5G, fiber-optic infrastructure, satellite services, cloud computing, and blockchain affect the Belt and Road Initiative (BRI)? How can BRI member states leverage China's technological advantages in infrastructure construction? Is China willing to share these technological achievements with member states? As China achieves global hegemony in the digital domain and future technologies, will it also dominate the construction process and financing of future infrastructure projects? Is there a possibility for China to increase investment in the soft infrastructure of the Digital Silk Road? Wang Huaian, Consulting Director for Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Refinitiv, a global financial market data and infrastructure provider, to share a series of interpretations on China's BRI practices.   Luoxue Special   Analysts believe that China's growing technological expertise along its digital Silk Road is expected to set benchmarks for the rest of the world to follow.   According to analysts, the growing technical expertise on China's Digital Silk Road is expected to become a benchmark for other regions around the world to emulate.   President Xi's ambitious Belt and Road Initiative (BRI) has embarked on the digital Silk Road long before the rest of the world began discussing connected smart cities and technology-driven solutions.   Long before other parts of the world began discussing interconnected smart cities and technology-driven solutions, President Xi Jinping's grand "Belt and Road Initiative" (BRI) had already embarked on the digital Silk Road.   As China continues to expand its digital footprint across sectors such as cloud computing, 5G, surveillance technology, and virtual currency, observers see movement in some areas towards Chinese technological dominance.   As China continues to expand its digital footprint in multiple fields such as cloud computing, 5G, monitoring technology, and virtual currencies, observers believe that China's technological leadership position in certain areas is gradually strengthening.   Dale Aluf, Director of Research & Strategy at SIGNAL (Sino-Israel Global Network & Academic Leadership), said that China is already leading the world in artificial intelligence, blockchain, 5G, and quantum technology publications and patents. "Data fuels AI development, and thanks to its extensive surveillance apparatus, China has access to an immense amount of data, so China seems well-positioned to emerge as a leader in this field."   Dale Aluf, Research and Strategy Director at the China-Israel Academic Exchange Promotion Association (SIGNAL), said that China is already in a leading position in the publishing and patenting of artificial intelligence, blockchain, 5G, and quantum technology. "Data drives the development of artificial intelligence, and thanks to massive surveillance equipment, China can obtain vast amounts of data. Therefore, it is very likely that China will become a leader in this field."   China has already launched the world's largest blockchain ecosystem, connecting to over 100 city nodes, and was the first country to launch widespread pilots of a digital fiat currency - the Digital Currency Electronic Payment (DCEP) system.   China has launched the world's largest blockchain ecosystem, connecting to more than 100 urban nodes, and is the first country to pilot a large-scale digital legal tender - Digital Currency Electronic Payment (DCEP) system.   Analysts agree that China has made tremendous breakthroughs in some future technologies.   Analysts unanimously believe that China has made tremendous breakthroughs in some future technologies.     "These technological advancements enable China to more effectively promote the progress of Belt and Road Initiative (BRI), enhance the bond between China and BRI countries, and advance BRI's flagship projects," said Walter Wang, consulting director at research and consulting firm Frost & Sullivan, in Greater China.   Wang Huaaiyuan, consulting director for Frost & Sullivan Greater China, said, "These technological advancements enable China to more effectively promote the Belt and Road Initiative, enhance connectivity between China and Belt and Road countries, and facilitate difficult projects along the route."   Wang cited China's world-leading fiber optic industry, which is already helping BRIC countries transform from traditional to renewable energy supplies.   Wang Huaiyuan mentioned that China's optical fiber industry is world-leading and has been helping countries along the 'Belt and Road' transition from traditional energy to renewable energy supply.   Many countries aligning with the Belt and Road Initiative are rich in solar energy resources, but "lack the technologies and resources to construct renewable energy infrastructure," according to Wang.   Wang Huaiyuan stated that many countries allied with the 'Belt and Road' initiative possess abundant solar energy resources, but lack the technology and resources to build renewable energy infrastructure.   "Through the Belt and Road Initiative (BRI), China can export advanced renewable energy technologies to BRI countries, and Chinese fiber optic enterprises are able to enjoy local preferential policies, including tax incentives and preferential treatment for equipment imports," he added.   "Through the Belt and Road Initiative, China can export advanced renewable energy technologies to countries along the route, and Chinese fiber optic companies can also benefit from local preferential policies, including tax incentives and equipment import preferences," he added.   According to Frost & Sullivan research, in some infrastructure areas, such as high-speed railways, 5G networks, and ultra-high voltage power grids, China's standards have become international standards as other countries catch up.   According to research by Frost & Sullivan, in some infrastructure areas such as high-speed railways, 5G networks, and ultra-high voltage grids, Chinese standards have become international standards, while other countries are catching up.   "Thus, by collaborating with Chinese enterprises, BRIC partner countries can adopt technologies that meet the most advanced standards in their infrastructure projects," said Wang.   "Thus, by collaborating with Chinese enterprises, 'Belt and Road' member states can adopt technologies that meet the most advanced standards in their infrastructure projects," said Wang Huaiyuan.   Impact on BRI Impact on the Belt and Road Initiative   According to Aluf from SIGNAL, China's technological prowess gives it an edge to push forward on BRI's key projects such as renewable energy, transportation, infrastructure, power, and healthcare. In today's technology-driven world, where the digital realm is intricately intertwined with physical infrastructure, this is particularly important.   According to Aluf from SIGNAL, China's technological strength gives it an advantage in promoting hard projects under the Belt and Road initiative, such as renewable energy, transportation, infrastructure, electricity, and healthcare, because in today's technology-driven world, the digital domain is closely intertwined with hard infrastructure.   "Railways, ports, and power grids, for example, would not be able to operate effectively today without software, sensors, and cybersecurity," he noted.   "For example, without software, sensors, and cybersecurity, railways, ports, and power grids would not be able to operate effectively today," he pointed out.   Moreover, China also provides a useful reference for BRICS countries with its digital transformation and industrial digitalisation models.   In addition, China's digital transformation and industrial digitization models also provide useful references for countries along the 'Belt and Road'.   Wang said that most BRICS countries are developing economies and have limited experience in dealing with digital technology, but can benefit from China's digitalization experiences.   Wang Huaiyuan stated that most countries along the Belt and Road are developing economies with limited experience in dealing with digital technology, but they can benefit from China's digitalization experiences.   He cited the Silk Road E-commerce platform developed by China in 2016 with 22 BRICS countries as an example. During the COVID-19 pandemic, China and those aligned with the BRICS quickly adjusted their strategies, shifting focus from offline to an online market, while taking advantage of cross-border e-commerce platforms to create more new growth points for the economic development of BRICS countries.   He took the Silk Road E-commerce Platform jointly developed by China and 22 "Belt and Road" countries in 2016 as an example. During the COVID-19 pandemic, China and the countries along the "Belt and Road" swiftly adjusted their strategies, shifting their focus from offline markets to online ones, fully leveraging the advantages of cross-border e-commerce platforms to create more new growth points for the economic development of these countries.   In the future, Wang expects China to continue assisting BRICS countries in improving their 5G infrastructure, which is the foundation of future digital transformation, and to promote their digital economies, such as popularizing mobile payments to facilitate loan processes for small and medium-sized enterprises (SMEs), thereby alleviating the 'urgent need' for financing during the pandemic.   Wang Huaiyuan expects that China will continue to assist 'Belt and Road' member countries in improving their 5G infrastructure, which is the foundation for future digital transformation and promote their digital economy development. For example, mobile payment will be popularized to facilitate loan processes for small and medium-sized enterprises, thereby alleviating the 'urgent need' for financing during the pandemic.   According to Jia Hao Chan, a research associate at Lee Kuan Yew School of Public Policy, National University of Singapore, how technology will be integrated into BRI projects will largely depend on the nature of the projects.   Jia Hao Chan, a researcher at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said that how technology is incorporated into 'Belt and Road' projects largely depends on the nature of the projects.   "And this will vary from region to region and country," he said.   "And this will vary by region and country," he said.   For example, in late 2017, Chinese company Huawei Marine partnered with the Pakistani authorities to start constructing the Pakistan East Africa Cable Express, which will connect Pakistan to Kenya and Djibouti, focusing on hard infrastructure interconnectivity.   For example, at the end of 2017, Huawei Marine, a Chinese company, began construction of the Pakistan East Africa Cable Express with Pakistani authorities. The express will connect Pakistan with Kenya and Djibouti, focusing on hard infrastructure connectivity.   "This is essentially different from the areas that China is focusing on in Southeast Asia (centered around IT services and soft infrastructure). In these regions, technology companies such as Alibaba and Didi Chuxing would collaborate with regional ride-hailing services like Grab through investment partnerships."   "This is fundamentally different from the areas China is seeking in Southeast Asia (focusing on IT services and soft infrastructure), as technology companies such as Alibaba and Didi Chuxing will cooperate with regional ride-hailing services like Grab through investment partnerships.   Technology exports Technology export   Given that the BRI is primarily a financing/investment mechanism, analysts at Fitch Solutions believe exporting technology simply adds a different dimension to the entire BRI assistance package.   Given that the 'Belt and Road' is primarily an investment and financing mechanism, analysts at Fitch Solutions believe that technology exports merely add a different dimension to the entire 'Belt and Road' aid program.   "Generally speaking, most BRI projects have already relied on using Chinese equipment and labor, so any technological advancement may simply mean higher quality or more efficient projects," said Daine Loh, Analyst, Infrastructure and Power & Renewables, Fitch Solutions.   "In a broad sense, most Belt and Road projects already rely on the use of Chinese equipment and labor, so any form of technological progress could mean higher quality or more efficient projects," said Daine Loh, infrastructure and power and renewable energy analyst at Fitch Solutions.   She pointed out that technologies such as 5G and AI are still in their early adoption phase in the broader infrastructure sector, adding, "We do not expect them to be widely used for some time to come."   She pointed out that technologies such as 5G and artificial intelligence are still in the early stages of adoption across a wider range of infrastructure areas, and added, 'We do not expect it to be widely used.'   Loh said that anything digital tends to also require a larger investment amount, and 'the financial capacity of BRI recipient markets will also be in question here, especially if these markets are prioritizing developing adequate infrastructure to meet their domestic needs first'.   Loh stated that any digital product will require more investment, and the 'Belt and Road' initiative's ability to attract market capital will also be questioned here, especially if these markets prioritize the development of sufficient infrastructure to meet their domestic needs.   Chris Devonshire Ellis, Chairman of Dezan Shira & Associates, believes that the best way for BRIC partner countries to benefit from China's technological prowess is to partner with Chinese operators.   Chris Devonshire Ellis, Chairman of KPMG's collaborative management consulting practice, said that the best way for 'Belt and Road' member states to benefit from China's technological strength is through cooperation with Chinese operators.   "In the West, the capitalist system has focused too much on profits and not enough on cashflow businesses and service lines. The Chinese are developing technologies to connect their services into supply chains to generate cash flow streams. This is a very sustainable business model," he said.   "In the West, the capitalist system pays too much attention to profits and does not pay enough attention to cash flow businesses and service lines. The Chinese are developing technology to link their services with supply chains to generate cash flow. This is a sustainable business model," he said.   LIMITS TO SHARING Sharing restrictions   Although China has achieved digital supremacy in some areas of future technology, how much of it will be shared with its BRICS partner countries remains to be seen.   Although China has achieved a digital hegemony in certain areas of future technology, it remains to be seen how much of this will be shared with the member states of the Belt and Road Initiative.   While developing countries should be able to take advantage of ICT infrastructure, China "will not share in the ownership of the technology that drives the infrastructure," according to Andre Wheeler.   Andrei Wheeler said that although developing countries should be able to utilize ICT infrastructure, China 'will not share the ownership of the technologies that drive the infrastructure'.   "The technology is owned by China under its national security legislative provisions. This may act as a barrier to future trade for these developing countries as they may be restricted in how they can conduct trade with the likes of the EU," said Wheeler, who is also the CEO of Asia Pacific Connex.   "According to China's national security legislation, this technology belongs to China. This could become an obstacle to future trade for these developing countries, as they may face restrictions in how they trade with EU countries and other regions," said Hui Le, CEO of Conex Asia-Pacific.   The Digital Silk Road, and the Belt and Road Initiative are supply-driven projects, noted researcher Chan. He added that China's technological offers do not guarantee the same level of adoption (demand) of technology goods and services across its partner countries.   The Digital Silk Road and the Belt and Road Initiative are supply-driven projects, noted researcher Jia Hao Chan. He added that the technology provided by China does not guarantee that its partner countries adopt (demand) the same level of technology products and services.   "Moreover, there could be a lag effect in technology exports, where certain technologies gain a foothold in the Chinese market before they are deployed elsewhere."   "In addition, technology exports may have a lag effect, with certain technologies first gaining a foothold in the Chinese market before being deployed elsewhere."   Therefore, Chan suggested that BRICS partner countries themselves should carefully consider 'what they really need' rather than simply 'taking whatever is put on the table'. 'They should also consider their own ability to adopt the technologies they want, and their rate of innovation if they are going to achieve competitive advantage in the long run.'   Therefore, Jia Hao Chan suggests that 'Belt and Road' member states should carefully consider 'what they truly need', rather than just 'taking whatever is on the table'. 'If they want to gain a long-term competitive advantage, they should also consider whether they have the ability to adopt the technologies they desire, as well as their innovation speed.'   According to Wheeler, the Digital Silk Road is the integrator of trade along the Belt and Road Initiative—something that is being developed to create an integrated and seamless trade platform with all BRI participants.   Heller believes that the Digital Silk Road is an integrator of 'Belt and Road' trade, aiming to create an integrated and seamless trading platform for all participants in the 'Belt and Road'.   "It is powerful because it targets the key merge points in transportation systems, particularly ports and rail."   "The strength of it lies in its targeting of key integration points within the transportation system, especially ports and railways."   However, he pointed out that the shortcomings in the DSR/BRI integration could limit China to BRI partner countries or a regional role.   However, he pointed out that the shortcomings of DSR/BRI integration could limit China's role to being a member or region within the 'Belt and Road' initiative.   While the EU-China Comprehensive Agreement on Investment (CAI) was hailed in January as a means of cooperation, Wheeler said there is also significant pushback from the EU regarding the recently introduced EU-Connectivity strategy, which has led to Huawei being banned as a network provider in EU digital connectivity initiatives.   Although in January this year, the EU and China reached an agreement on the Comprehensive Investment Agreement (CAI) as a means of cooperation in principle, Wheeler said that the EU also faces significant resistance. The recently launched EU connectivity strategy has led to companies such as Huawei being banned from becoming network providers for the EU's Digital Connectivity Initiative.   Making Inroads Marching into   However, many countries are already reaping the benefits of China's infrastructure expansion and technological advancement.   Many countries have already reaped the benefits brought about by China's infrastructure and technological enhancements.   Aluf of SIGNAL pointed out that several Middle Eastern countries are cooperating with China on smart city technology, and there is even a project designed to streamline the experiences of pilgrims traveling to Mecca and Medina.   Aluf from the China-Israel Academic Exchange and Promotion Association pointed out that some Middle Eastern countries are conducting technical cooperation with China on smart cities, and there is even a project aimed at simplifying the pilgrimage experience for pilgrims traveling to Mecca and Medina.   "China's 2Africa initiative, one of the largest submarine projects in the world, aims to connect 23 countries in Africa, the Middle East and Europe with an energy-efficient fiber optic cable that uses Spatial Division Multiplexing technology," he added.   "China's 2Africa project is one of the world's largest undersea projects, aiming to connect 23 countries in Africa, the Middle East, and Europe through resource-efficient fiber-optic cables using space division multiplexing technology," he added.   Meanwhile, its SeaMeWe-5 submarine cable is expected to carry telecommunications between Singapore and France.   On the other hand, China's Asia-Europe 5 international submarine cable transmits signals from Singapore to France.   According to Frost & Sullivan's Wang, most BRIC partner countries have outdated data infrastructures, which means operational efficiency is low and maintenance costs are relatively expensive.   According to Wang Huaian of Frost & Sullivan, the data infrastructure in most 'Belt and Road' member countries is outdated, which means low operational efficiency and relatively high maintenance costs.   For long-term development, these countries will need to upgrade their existing infrastructure as well as initiate new infrastructure projects.   For long-term development, these countries need to upgrade their existing infrastructure and initiate new infrastructure projects.   "China, as a pioneer, can provide these countries with the necessary technologies, financing, and more importantly, practical experience," said Wang.   "China, as a pioneer, can provide the necessary technology and funds to these countries, and more importantly, offer them practical experience," said Wang Huaiyuan.   For example, he said, China and the Republic of Belarus have jointly built industrial parks based on the industrial Internet. China also has transportation and internet infrastructure upgrading projects in Iran, Pakistan, Vietnam, Brazil, and Malaysia. "Therefore, with the support from China, BRI partner countries will accelerate their infrastructure upgrading process and build up their information systems," added Wang.   For example, China and Belarus have jointly built industrial parks based on the Industrial Internet, and there are also projects to upgrade transportation and internet infrastructure in Iran, Pakistan, Vietnam, Brazil, and Malaysia. "With the support of China, 'Belt and Road' member states will accelerate the process of infrastructure upgrading and strengthen information system construction," Wang Huaian added.   BEYOND TECH SUPREMACY Surpassing the status of a technological hegemon   China's dominance over future technologies will continue to grow, but Ellis points out that an overlooked aspect of the Belt and Road Initiative (BRI) is that it will transform China into a global supply chain middleman.   Ellis believes that China's dominant position in future technology will continue to strengthen, but one aspect overlooked by the 'Belt and Road' initiative is that it will make China an intermediary in the global supply chain.   "It's not just about making products and building infrastructure, it will also operate much of it," he said. "Everything someone buys in Paris or London will have a price component that has been charged by a Chinese business," he added.   "China is not only manufacturing products and building infrastructure, but it also operates most of these products. Everything people buy in Paris or London includes a portion charged by Chinese companies," he said.   While it seems that observers tend to focus on specific technologies and their impacts on a given technology or economic sector, Aluf insists that the true power of these technologies is unleashed through their augmentation.   Although observers seem to be inclined to focus on specific technologies and China's impact on particular sectors of technology or the economy, Aluf insists that the real power of these technologies lies in their potential for enhancement.   For example, by combining embedded sensors, metering devices, cameras, and other surveillance technology with big data processing and aggregated data analysis, he said China has emerged at the forefront of smart city development.   For instance, by combining embedded sensors, measuring devices, cameras, and other monitoring technologies with big data processing and aggregated data analysis, he stated that China has already been at the forefront of smart city development.   “ for its financial also is so， Huawei、 Tencent and Alibaba such company been in。”   “ same， China the carbon in and goals also it will strong input clean the development。”   Aluf said， with China in achieve and in the redouble input， expected China also will for clean technical and sustainable the development into large resources。   Aluf said， with China in achieve and in redouble input， expected China also will for clean technical and sustainable the development into large resources。   future investment future investment   in BRI under the investment in，Chan noted， China may Committee increase to digital the input， but not must Committee taken Government intergovernmental（G2G）、 Government to enterprises（G2B） industry coordination the way。   Jia Hao Chan said， in“ area” investment in， China may Committee increase to digital the investment， but not must Committee taken Government intergovernmental（G2G）、 Government with enterprises（G2B） industry coordination the way。   “ they can to company level the B2B forms emerging，” he said， and added road， China technology company has in many local/ regional technology company in conducted investment。   “ they can in company level to B2B the forms emerging，” he said，“ China technology company has investment the many native regional the technology company。”   in Government level， China Prime in3 in announced， China will in future within will development expenditure increase7% more， to promote advanced technical made。   Government level， China Prime in3 in announced， China will in future within will development expenditure increase7% more， to promote advanced technical made。   ， as outbreak after rescue plan the，Aluf said， China is increase in national scope within capacity-building digital grid the plan， including capacity-building5G network、（AI）、 publications networking（IoT）、 intercity high-speed and establishment development institutions。   ，Aluf said， as outbreak after rescue plan the， China is increase in national scope within capacity-building digital grid the plan， including capacity-building5G network、（AI）、 publications networking（IoT）、 intercity high-speed and establishment development institutions。   “ account to China in achieve background under international digital expansion the， I think China very may Committee in digital the flag under increase to digital the funds，” he added said。   “ account to China international digital expansion in its background under the， I think China very may Committee in digital the flag under increase to digital the funds。” he added said。   While COVID-19 big popular great to impact the world economic， but China to BRI Nations the such external direct investment still keep strong and positive，2020 in to 1780 ， than 2019 in growth 18.3%。   despite COVID-19 big popular serious impact the world economic， but China to“ area” the such external direct investment still keep positive、 the support，2020 in to 1780 ， than 2019 in growth 18.3%。   2021 in， China to“ area” the external direct investment continue growth to 96 ， for 8.6%。   2021 in， China to“ area” the external direct investment continue growth to 96 ， for 8.6%。   “ under， we think China to‘ area’ the expenditure will continue rise， and cooperation will more effective and comprehensive，” said。   “ from past data look， we think China to' area' the expenditure will continue rise， China and the between the cooperation will more effective and comprehensive。” said。   in sustainable foreseeable the future， he said communications and data level will extent on impact“ area” the development。“ therefore， China will continue raise soft the funds to ensure‘ area’ the success。”   he said， in sustainable foreseeable the future，“ area” the communications and data level will in extent on impact“ area” the development。“ therefore， China will continue raise soft the funds， to ensure‘ area’ the success。”   weaknesses weaknesses   but China in pursuit technical the road on not not challenges。 weaknesses is technical hardware， it allow future the technical work， example/ capacity， this to in individual micro chip on installed more more to effective with big/ information exchange。   but China in pursuit technical the road on not not challenges。 of the weaknesses is to allow future technical work the hardware， example、 capacity， this to in individual micro chip on installed more more to effective with big、 information exchange。   Wheeler noted， chip design by States and Korea leading， global the design Centre is States in have the， and taiwan and Korea total control the global75% the manufacturing capacity。   Wheeler noted， chip design by States and Korea leading， global the design Centre is States in have the， and taiwan and Korea total control the global75% the manufacturing capacity。   “ China currently is try change agenda， not on technical development， but claims the chip utility。 major issues， because and chip technical is UNDP and in publications networking、 such areas in the use core， also is China UNDP more advanced the6G network the major obstacles，” he explained said。   “ China currently change discussion the agenda， no is on technical development， but claims the chip utility。 major issues， because and chip technical is UNDP and in publications networking、 such areas in the use core， also is China UNDP more advanced the6G network the major obstacles。” he explained said。   Aluf noted， China for achieve technical hegemony and promote global standards the efforts caused the some people the concerns。   Aluf noted， China for achieve technical and promote global standards the efforts caused the some people the concerns。   “ in powers competition the situation reintegration outbreak the background under， Western， Special is States， determination in emerging technical the development and standards development in keep，” he said。   “ in powers competition the situation reintegration outbreak the background under， Western， particular is States， decision in emerging technical the development and standards development in peacekeeping own the。” he said。   he think， States《 reconstruction bill》（B3W） expected value7， may Committee become“ area” initiatives the balances power。   he think， expected value7 the States《 reconstruction bill》（B3W）， may Committee become“ area” initiatives the balances power。   “ if success， it may Committee diluted‘ area’ project the—— including those in digital areas the，” he said。   “ if success， it may Committee diluted‘ area’ project the， including digital areas。” he said。     * paperZAWYA Internet， author forSA Kader， editor forCharles Lavery，Anoop Menon， article original title for《BRI: Digital know-how along China's BRI will set future global tech standards》， Click reading original can View reported original。

2022 year 1 month 5 On the afternoon of the same day, the New Shanghai Businessmen's Health Research Society, co-hosted by the New Shanghai Businessmen Federation and Trace Capital, 10 period C9 China Medical Beauty Industry Venture Capital Forum ·No. 3 The roadshow was successfully held, bringing together healthcare innovation companies, investors in the medical industry, and consulting advisors to discuss innovations, investments, and asset securitization in consumer healthcare. They explored the 'appearance value' economic battlefield.   Frost & Sullivan Frost & Sullivan Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the event and delivered a speech on the market landscape and development trends in the consumer healthcare and medical aesthetics sector. First of all, Mao Huaibing introduced the overall overview of the medical aesthetics industry to the guests present. He pointed out that the medical aesthetics industry possesses both medical and consumer attributes, with strong regulatory medical aspects ensuring a continuous increase in consumer trust. Adding to this, it has enhanced consumer recognition and can effectively promote the development of formal medical beauty service institutions and R&D companies. With the rise in per capita disposable income of Chinese residents, the penetration rate of medical beauty in China will continue to increase. 2020 In [year], the per capita disposable income of Chinese residents reached 32,189.0 yuan 2016 Year to 2020 The compound annual growth rate for the year is 7.8% ;estimated 2025 In [year], the per capita disposable income of Chinese residents will further grow to 46,902.4 Yuan. According to a Frost & Sullivan survey, Chinese medical beauty consumers are mainly young women, and the penetration rate of medical beauty consumers is higher in first-tier cities. Currently 20 - 35 Consumers aged 25-34 are the main consumer group, and the Chinese medical beauty market as a whole is showing a trend towards younger demographics. Among various medical beauty projects, non-surgical injectable procedures are favored by consumers due to their low surgical risks, short recovery time, lower prices, and less mental burden. In recent years, the scale of China's medical beauty market has grown rapidly, with the proportion of non-surgical income continuously climbing. Subsequently, Mao Hua elaborated in detail on the overall market situation of medical beauty injection products. Common medical beauty injection products in China are divided into two categories: medical devices and non-medical devices. The main application items of medical devices include hyaluronic acid, Juvenile Beauty Needle, Youthful Beauty Needle, etc., while botulinum toxin belongs to the category of non-medical devices. Data shows that as the public's acceptance of light medical beauty projects continues to increase, the market for medical beauty injection products in China is growing at a high speed. 2020 In China, the total market scale of medical beauty injection services reached 399 RMB 10 billion, expected 2025 In [year], the market scale of cosmetic injection services in China will further grow to 1,038 RMB 10 billion 2020 Year to 2025 Annual Compound Annual Growth Rate 49.8% .   In addition, although ordinary consumers in China are still more willing to pay a premium for overseas brand products, domestically produced brands such as Huaxi Biotech are 500 - 1,000 Price segments have provided consumers with highly cost-effective products. Therefore, domestic injectable medical beauty products have also occupied a certain market share due to their lower prices compared to imported ones. Moreover, as domestic companies expand their product lines and highlight their cost-effectiveness advantages, the market share and reputation of domestic injectable medical beauty products continue to improve. It is expected that the degree of localization of China's medical beauty injectable product market will continue to increase in the future. Compared to other medical aesthetic procedures, hyaluronic acid injections have advantages such as a shorter recovery period and better results. The national consumer willingness is high, the industry ecosystem is healthy, and product quality is stable. In recent years, due to the introduction of strict regulatory policies, the number of approved hyaluronic acid injections has gradually stabilized. Under the situation of high terminal prices for hyaluronic acid injections, the profit margins of midstream and downstream service institutions are at a high level in the entire industrial chain. Mao Hua said that with the gradual formation of the concept of light medical aesthetics among Chinese women, the medical beauty market has further expanded, becoming more compliant, with continuous technological progress and price drops. More and more consumers choose hyaluronic acid injections instead of short-term skincare products, which will ensure the sustained growth of the future hyaluronic acid injection market. At the same time, the proportion of domestic sales in China's injectable hyaluronic acid market has increased significantly, mainly contributing to the price increase. With the advancement of domestic technology and the expansion of product lines, localization will become a trend in the future. The market share of Youthful Beauty Needle and Teenage Beauty Needle has shown a continuous and rapid increase with the launch of new products, and it is expected to replace some of the hyaluronic acid market share in the future. Among them, due to the high global recognition of Ellanse products, they have gained attention three months after their launch on the Chinese mainland as cost-effective products in the light medical aesthetics market. The market scale of 'Teenage Beauty Needle' has grown rapidly, with an estimated value reaching 660 million yuan by 2025. Before 2021, there were no 'Youthful Beauty Needle' products recognized by regulatory authorities in the Chinese market. With the introduction of new products, the market penetration rate of 'Youthful Beauty Needle' is expected to increase, reaching a market scale of 1.6 billion yuan by 2025. Both types of products belong to regenerative collagen products, and due to differences in composition and mechanism of action, there are differences between them in terms of injection depth, operation method, and onset time. Another category of non-instrumental medical beauty projects - represented by botulinum toxin (Botox) - is widely used in the field of medical aesthetics and has good customer acquisition attributes. For instance, it can be used not only on multiple body parts but also combined with other treatments. It is highly safe, with most common adverse reactions being reversible. Additionally, due to the need for multiple injections to maintain results, the repurchase rate is relatively high, indicating a huge market potential. However, due to the strict approval process for Botox, domestic companies generally adopt a licensing model to shorten product launch times. This model carries certain risks. On the other hand, the production of Botox requires strict standards, demanding transportation conditions, and strong regulatory policies, resulting in relatively high industry barriers. Although these factors have constrained the development of the entire domestic industry to some extent, 'with the increase in consumer penetration and new product approvals for market release, the market scale of Botox injection products in China will continue to maintain medium-high growth over the next five years,' said Mao Hua.

Innovation Growth & Economy 2021 year 12 month 30 Today, "Innovation-driven Growth & Economic Development" - CBN Little Lion 100 The index release event was successfully held at the Shanghai TV Tower in Shanghai Media Group's headquarters. Yang Yudong, the chief editor of CBN Financial News, delivered a speech on behalf of the organizers. Huang Yuncheng, former deputy director of the Policy Research Office of the China Securities Regulatory Commission, and Yin Yantai, director of the Hua'an Securities Research Institute, gave keynote speeches.   Frost & Sullivan Frost & Sullivan Mr. Xu Biao, Executive Director of Frost & Sullivan's Greater China Region, was invited to attend the event and host a roundtable discussion. He joined forces with guests such as Jiang Yuan, Chairman of Zhichun Technology, Fei Zhi, President of GCL Energy Science & Technology, Su Bin, General Manager of Feikai Materials, and Xue Lixin, President of Jingrui Electric Materials, to explore the core driving forces for the growth of small and medium-cap enterprises. Little lion 100 Indices are selected by CBN after quantitative screening, subjective research, and supplemented by first-hand field investigations. 100 home A Small and medium market value listed companies, aiming to reflect A Companies with healthy financials, steady growth, emphasis on R&D and innovation, and leading growth potential in niche industries 100 Market price performance of small-cap listed companies in China. Yang Yudong, Chief Editor of CBN Yang Yudong stated that CBN has always been practicing frontline tracking and research on microeconomic entities in its daily news coverage, deeply feeling the surging momentum of China's high-quality economic development. In this process, we have found that among many 'small but beautiful' listed companies, there are those dedicated to import substitution with hard technology, those leveraging their strengths in strengthening and supplementing chains, as well as tomorrow's stars under the trend of carbon peak. Therefore, CBN has fully launched the 'Little Lion Growth Potential Research Program' and the 'Little Lion Growth Potential Index Project' this year, focusing on these outstanding small and medium-cap listed companies with high growth potential. Huang Yuncheng, former deputy director of the Policy Research Office of the China Securities Regulatory Commission The theme shared by Huang Yuncheng is 'Listed Companies are an Important Force in Promoting China's Economic Development'. Huang Yuncheng believes that the most important indicator for evaluating listed companies is market value. Currently, market value is 100 Listed companies with less than 100 million yuan 3000 Home, accounting for 70% - 80% The transformation and upgrading of these listed companies will be the main focus of the entire listed company transformation and upgrading in the future. 100 Yuan to 1000 Yuan billion represents a significant growth potential. Little lion 100 The index mainly studies market capitalization at 50 hundred million ~800 A listed company worth hundreds of millions is currently within this range. Yin Yantai, Director of Research Institute at Hua'an Securities Yin Yanji stated in his speech that since the establishment of the Sci-tech Innovation Board, many technology companies have gone public, and in the future, many technology companies may grow into enterprises with market values exceeding one hundred billion. Many technology companies 2017 In [a certain year], the market value was only a few hundred billion, or even just a few hundred million. However, leading enterprises in artificial intelligence and industrial Internet have now steadily reached a market value of hundreds of billions, which started from that time. We are currently at a stage where the industrial era is transitioning into the information age, with new and old technologies replacing each other. The future will be the information age, and the core resource of the information age is data. In the past two years, the growth rate of the global digital economy has far exceeded GDP Growth rate, this is the general trend of the times.   What are the important factors for the growth of small and medium-cap listed companies? How are they different from large-cap enterprises like CATL and WuXi AppTec? By CBN Little Lion 100 At the index release event, Xu Biao, Executive Director of Frost & Sullivan China, discussed with Jiang Yuan, Chairman of Zhichun Technology, Fei Zhi, President of GCL Energy Science & Technology, Su Bin, General Manager of Feikai Materials, Xue Lixin, President of Jingrui Electric Materials, and others the core drivers for the growth of small and medium-cap enterprises. Roundtable Discussion: Observations on the Growth Potential of Small and Medium Market Cap Enterprises   Jiang Yuan, Chairman of Zhichun Technology, stated that throughout its journey, Zhichun Technology has been most concerned with strategic management and the construction of innovation capabilities. She mentioned that financial resources, core technology, and the ability to acquire high-end talents are the three core competencies that, alongside strategic management capabilities, are of utmost importance. Xue Lixin, President of Jingrui Electric Materials, believes that the development of Jingrui Electric Materials requires four elements. The first is a market capacity with high-speed development and scalability; the second is products with core competitiveness; the third is a team characterized by wolf-like traits; and the fourth is capital. Su Bin, General Manager of Feikai Materials, stated that for listed companies to achieve long-term growth, two major elements are needed. One is diversification from downstream industries and diversification of products within the same industry. As an advanced materials enterprise, this is a direction for future growth. Second, for a materials company, independent research and development should be carried out alongside external collaboration. Fei Zhi, President of GCL Energy Technology Group Co., Ltd., stated that for an enterprise to achieve higher-speed development, there are several characteristics: First and foremost, it is necessary to find the right track; a small track definitely cannot support large-scale operations. Secondly, innovation is essential. Currently, the degree of homogenization is also very high, so there must be a good business model and technological competitiveness. Thirdly, it comes down to the team and mechanisms. Talent is the primary resource, and the mechanism is the fundamental guarantee for leveraging talent's capabilities. The good wind favours the brave; now is the time to set sail. It is reported that Frost & Sullivan, in collaboration with its strategic partner LeadLeo,     Navigator /navigator Plan ”    at 2022 Upgrade annually and set off anew.   In addition to continuing to assist start-ups and small and medium-sized growing enterprises, the plan will further cover outstanding small and medium-cap listed companies with high growth potential. It will provide companies with the necessary professional knowledge and services for sustainable growth, empower them to upgrade their business models, improve internal efficiency and strategic development, and enable them to quickly establish value advantages. As of 2021 At the end of the year,   Navigator /navigator Plan ”   We have helped over a hundred enterprises complete in-depth research, uncover their investment value and growth potential, provide value dissemination services, grasp industry trend dividends, and assist them in achieving all-round growth, expansion, and strengthening.   Whether supporting 'Little Lions' or empowering 'Dream Chasers', Frost & Sullivan and LeadLeo always believe in and support the original driving force of the Chinese economy, persist in research-driven strategies, place a heavy emphasis on China, strive with Chinese entrepreneurs and grow together.

Frost & Sullivan insights In 2021, multiple tech giants such as Baidu and Huawei accelerated the construction of intelligent vehicle ecosystems. Recently, the China Intelligent Connected Vehicle Industry Innovation Alliance and the National Intelligent Connected Vehicle Innovation Center released the 'Guidelines for the Construction of a Group Standard System for Intelligent Connected Vehicles', promoting further progress in the industrialization and commercialization of intelligent connected vehicles. This also means that intelligent vehicles will enter a stage of highly networked mass application. Against this backdrop, how can the penetration rate of L2 new vehicles be improved? How will the integration of intelligent connected vehicle technologies develop? Where is the core of data security? Zhang Zhiwei, Executive Director of Frost & Sullivan Greater China, was interviewed by Securities Daily to analyze the development trend of intelligent connected vehicle technology integration. Securities Daily The rapid development of intelligent vehicles is attracting more and more attention.   In 2021, multiple tech giants such as Baidu and Huawei accelerated the construction of intelligent vehicle ecosystems. Recently, the China Intelligent Connected Vehicle Industry Innovation Alliance and the National Intelligent Connected Vehicle Innovation Center released the 'Guidelines for the Construction of a Group Standard System for Intelligent Connected Vehicles', promoting further progress in the industrialization and commercialization of intelligent connected vehicles. This also means that intelligent vehicles will enter a stage of highly networked mass application.   While the level of intelligence is improving, information security issues have also become a 'growth concern' for intelligent connected vehicles. Since the beginning of this year, incidents such as 'information leaks', 'system attacks that alter routes', and others have occurred frequently.   The development of intelligent connected vehicles cannot be separated from information and data. For this reason, it is very important to regulate the industry with laws and regulations and set 'traffic lights' for this hot track.   How can the penetration rate of new L2 vehicles be improved? What is an intelligent connected vehicle? Simply put, it is the organic combination of connected vehicles and intelligent cars.   At the 2021 World Intelligent Connected Vehicles Conference, Xiao Yaqing, Minister of Industry and Information Technology, stated that the penetration rate of new L2-level passenger vehicle markets has reached 20%, connected vehicle deployments are advancing in an orderly manner, over 3,500 kilometers of roads across the country have been intelligently upgraded, and more than 5 million vehicles are equipped with connected terminal devices.   Ma Tianyi, chief analyst of communications at Minsheng Securities, told the Securities Daily reporter that according to current statistical criteria, intelligent connected passenger vehicles must be equipped with L2-level or higher assisted driving capabilities, as well as features such as vehicle networking and OTA upgrades. Although the proportion of sales of intelligent connected passenger vehicles has fluctuated this year, it is still on an upward trend, with new energy vehicles accounting for more than 30%.   Since the beginning of this year, cities such as Beijing, Shanghai, Chongqing, Guangzhou, Wuxi, Changsha, and Wuhan have successively established intelligent connected vehicle demonstration zones to lead the development and implementation of automotive intelligent networking.   At the same time, the development of intelligent connected vehicles has also received more policy support. The 'Administrative Specifications for Road Testing and Demonstration Applications of Intelligent Connected Vehicles' released on July 27th state that industry institutions and enterprises are supported to conduct road tests on a larger scale and carry out demonstration applications in various scenarios, further promoting data sharing and mutual recognition of results, and encouraging exploration of commercial development models. On September 27th, the 'Three-Year Action Plan for the Construction of New IoT Infrastructure' was issued, which explicitly mentions the creation of a comprehensive monitoring platform for coordinated services of connected vehicles (intelligent connected vehicles) in the field of intelligent transportation, accelerating the construction of application scenarios such as smart parking management and autonomous driving, and promoting the networking and coordination development of urban transportation infrastructure, vehicles, and the environment.   Zhang Zhiwei, Executive Director of Frost & Sullivan Greater China, told the Securities Daily reporter that autonomous driving and intelligent connectivity have redefined automobiles, evolving them from traditional means of travel to a broader concept encompassing mobile spaces. Against the backdrop of automotive intelligence, automotive autonomous driving systems and intelligent cockpits are gradually becoming core elements. Currently, China's intelligent connected vehicle industry is transitioning from the technology research and development and testing verification phase to a new stage of demonstration applications and large-scale commercial promotion. There is an urgent need to introduce and improve relevant standards. The recently released 'Guidelines for the Construction of the Intelligent Connected Vehicle Group Standard System' further constructs the Chinese intelligent connected vehicle group standard system, increasing the number of group standard items to 212 and research projects to 13 based on the 2020 version.   Wang Zhao, Director of the Standardization Institute at China Automotive Technology and Research Center Co., Ltd., stated that standards are a double-edged sword. The industry should pay attention to technological progress, industrial development, and government management needs, fully considering the scope and urgency of standard demands driven by technological and industrial development, and determine through what form and level of standards to meet the diverse needs of intelligent connected vehicles.   Through the formulation and launch of standards, as well as capital and technological investments by automakers, the market penetration rate of new L2 passenger vehicles will steadily increase in 2022.   How to integrate intelligent technologies? New forces in the automotive industry are emerging with great momentum. With NIO, Li Auto, and Xpeng successively listing overseas, they have not only sparked a startup boom for new energy vehicles in China but also promoted the popularization of intelligent connected vehicles. Against this backdrop, traditional automakers are also accelerating their pace of upgrading vehicles towards intelligence.   "In the future, 'software' may be the key determinant of a car's productivity. Currently, new force automakers are taking the lead in electrification and intelligence, while traditional automakers have weaker software capabilities and temporarily need to rely on third-party technology companies to provide solutions," said Zhang Zhiwei. Behind the successive launches of intelligent connected cars by automakers such as BAIC, SAIC, and Changan are internet technology companies like Tencent, Alibaba, and Huawei collaborating with automakers using intelligent technologies and internet resources. Most new car-making forces have started from auxiliary systems and algorithms, continuously making breakthroughs in autonomous driving and human-machine interaction systems.   Xu Hui, secretary of the board of directors of Great Wall Motor, told the Securities Daily reporter that automakers have increasingly recognized the trend of 'software-defined vehicles.' The decoupling of software and hardware, as well as the standardization of parts, will reshape the automotive supply chain. Industry control points shift from manufacturing to software and services. 'Hardware redundancy design + software iteration capability' will become a watershed between technology mobility companies and traditional automobile manufacturers.   Xu Hui stated, 'The continuous charging of software within the automotive industry has already emerged. The value composition of intelligent connected vehicles will become hardware, software, and content/services. In the future, it is expected to generate sustainable revenue from the sold cars, re-opening up a new blue ocean market. Automakers need to build a global unified architecture big data platform, create an analysis closed loop around user data, vehicle data, and environmental data, deeply mine data value, and lay the foundation for exploring new business models.'   The development of intelligent connected vehicles is subverting the entire travel market. In terms of hardware, automakers need to control design technology routes and consider how to better carry out vertical integration upstream and downstream to provide a better travel service experience. In software, software has become a new competitive point, with the operating system being at the core of software capabilities, responsible for controlling and managing the hardware and software resources of an entire intelligent vehicle. Better integration of hardware and software, as well as enhancing automakers' own software R&D capabilities, have become new highlights for valuation premiums of automakers.   Electrification, connectivity, and automation have become the development directions for the future automotive industry, and a consensus has been reached within the industry. Digital technologies such as cloud computing, the Internet of Things, 5G, artificial intelligence, autonomous driving, and blockchain will bring new business models to automakers. Xu Hui stated that Great Wall Motor is using emerging technologies to accelerate its transformation from a traditional manufacturing enterprise into a technology-driven mobility company, providing users with a richer travel experience based on automotive software and services.   Under the trend of innovation, how can technology giants be overlooked? In 2021, internet companies flocked into the automotive manufacturing sector, with Baidu, Huawei, Didi Chuxing, Xiaomi, OPPO, and 360 among others entering the market either through cooperation or independent research and development to cross over into the field of vehicle manufacturing. The increasing number of internet technology enterprises has opened up a new situation for the development of intelligent connected vehicles.   Meanwhile, the intelligent connected vehicle industry chain is long, with software and hardware suppliers continuously expanding. These companies have benefited from the demand for intelligent upgrading in the automotive industry, enjoying market dividends and capital favor. Liu Qi, a senior analyst at LeadLeo Research Institute and a reporter from Securities Daily, said that compared to automakers and Tier 1 suppliers who are keen on internal R&D, technology companies focusing on intelligence can better grasp the evolving trends of the new four modernizations in automotive industry, make forward-looking technology research and development plans, and provide complete automotive electronic solutions for downstream automotive electronics manufacturers and OEMs by integrating upstream chip and other component supplies.   Where is the core of data security? With the integration of 'mobile internet services + in-vehicle technology', cars are expected to become the largest mobile consumer smart terminals, energy transmission tools, and data processing nodes. Service data related to people, vehicles, and parking lots is experiencing explosive growth.   Although data has become an important strategic resource for automakers' transformation in the next phase, a series of automotive safety issues that arise as a result cannot be ignored.   At the 2021 World Intelligent Connected Vehicles Conference, Chen Luping, Chief Engineer of the China Software Testing and Evaluation Center, released the latest results on intelligent vehicle information security testing: Among the 11 newly released models with security protection measures, wireless network security issues accounted for 73%, reverse engineering of vehicle and mobile terminal apps accounted for 64%, unauthorized access to sensitive data accounted for 45%, and unauthorized access to personal information accounted for 18%...   This result has drawn widespread attention. In fact, since the beginning of this year, various data security issues such as 'user privacy data breaches' have been continuously exposed, causing significant fluctuations in the stock prices of many companies.   Wang Yingmin, Chief Engineer of Datang Telecom Group, believes that 5G communication technology can accelerate the advancement of automotive intelligence and drive the development of application scenarios such as autonomous driving. However, this also poses higher requirements for information security.   Yan Jinghui, a member of the Expert Committee of the China Association of Automobile Circulation, told the Securities Daily reporter that the intelligent connected vehicle industry chain consists of many links, and enterprises have interconnectivity in terms of data. If any link is not properly protected, security issues in the communication field in the past may recur in the automotive sector, potentially even endangering driving safety.   "The so-called intelligent vehicles are currently only in the stage of assisted driving or semi-autonomous driving. The application of 5G in fields such as intelligent driving, intelligent transportation, and connected vehicles is still in the research and development and testing stages, with only a small number being commercially available. However, the intricate application scenarios increase the risk of information leakage," said Jia Xinguang, chief analyst at China Automotive Industry Consulting Development Company, to the Securities Daily reporter.   In terms of enhancing information security levels, enterprises related to the automotive industry chain still have a long way to go. Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center of Northern Polytechnical University, suggests, "R&D personnel should analyze data to reduce potential hazards, appropriately lower the accuracy of data collected by in-vehicle cameras, try to process enterprise data locally after collection, and promptly delete and patch vulnerabilities. Unified management of scrapped vehicle data should be carried out to improve security. Relevant departments should establish unified standards for companies in the automotive, internet, travel, and other industry chains."   In fact, the management of data security for intelligent connected vehicles is being further strengthened. In May this year, the Cyberspace Administration of China issued a notice soliciting public opinions on the 'Several Provisions on the Security Management of Automotive Data (Draft for Soliciting Opinions)', further clarifying issues such as responsible entities, data scope, collection methods, privacy protection, and data export. In June, the Ministry of Industry and Information Technology issued the 'Notice on Strengthening Network Security Work for Connected Vehicles (Intelligent Connected Vehicles) (Draft for Soliciting Opinions)', proposing that relevant enterprises should take management and technical measures to strengthen the security protection of vehicles, networks, platforms, and data in accordance with the standards related to connected vehicle network security and data security.   "In the coming year, detailed specifications will also be introduced for information collection in intelligent connected vehicles. Issues such as how to define responsibility in case of accidents by autonomous vehicles led by machines are also expected to be resolved," Jia Xinguang believes.   *This article is reprinted from 'Securities Daily', with reporters Jia Li and Guo Jichuan. The original title was 'Intelligent Connected Vehicles: 'Technology Upgrade + Safety Assurance' Jointly Push the Industry into Fast Lane'.

Frost & Sullivan insights "Innovation" has become the top keyword in the pharmaceutical industry in 2021. Looking at the approval of new drugs, this year at least 61 new drugs have been approved for marketing by the National Medical Products Administration (NMPA) of China, including 25 locally developed drugs. Both the overall number of approvals and the proportion of domestically innovative drugs have reached record highs. In terms of financing data, the COVID-19 pandemic has catalyzed a surge in healthcare capital, leading to a significant increase in financing events and amounts in 2021. What stage is China's innovative drugs at? What problems in the R&D of innovative drugs in China need to be urgently addressed? How do multinational companies (MNCs) respond to China's innovation wave? For the future, is it "the future has come" or "the dividend has ended"? Zhu Yi, Executive Director of the Healthcare Business Unit in Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was interviewed by Blue Whale Finance. He discussed with you the development trends of the healthcare industry and the innovative drug market. Blue Whale Finance "Innovation" is undoubtedly the top keyword in the pharmaceutical industry in 2021.   In terms of new drug approvals, at least 61 new drugs have been approved for marketing by the National Medical Products Administration (NMPA) of China this year, including 25 locally developed drugs. Both the overall number of approvals and the proportion of domestically innovative drugs have reached record highs. In terms of financing data, domestically, the total financing for China's healthcare industry reached 100.234 billion yuan in the first half of 2021, a year-on-year increase of about 78.72%. The COVID-19 pandemic has catalyzed the influx of healthcare capital, leading to a significant increase in financing events and amounts in 2021.   However, alongside the rise of innovative drugs, there is also a problem of homogenization of innovative targets. In 2020, the Drug Clinical Trial Registration and Information Publicity Platform registered a total of 2,602 clinical trials. However, among the top 10 target varieties registered for clinical trials, the total number of varieties reached as many as 389, accounting for over 10%, indicating severe competition.   In the face of the vigorous development of innovative drugs in China, how are multinational pharmaceutical companies (MNCs) headquartered in China actively responding? It is evident that they are increasingly willing to invest resources in China's innovation sector, whether it be in clinical BD, incubation, or investment.   In 2021, what stage is China's innovative drugs at? What problems in the R&D of innovative drugs in China need to be addressed urgently? How do multinational companies (MNCs) respond to China's innovation wave? For the future, is it 'the future has come' or 'the dividend has ended'?   With favorable policies, the approval rate of domestic innovative drugs reached a new high in 2021. Since the reform of drug review in 2015, the policy side has continuously released positive signals to promote the adjustment of the domestic pharmaceutical industry structure and technological innovation. With the deepening reform of the drug approval system, a series of policy combinations such as the pilot program for drug marketing authorization holders, quality and efficacy consistency evaluation of generic drugs, and dynamic adjustment mechanisms of medical insurance catalogs have been introduced. These have completely changed issues such as insufficient R&D resources, slow review progress, low bidding efficiency, high hospitalization difficulty, and difficulties in connecting with medical insurance in the traditional pharmaceutical industry. They have greatly accelerated the rapid market launch of innovative drugs in China, promoted centralized procurement of drugs, and medical insurance payment processes. This has completely overturned the original R&D and sales model dominated by generic drugs in the Chinese pharmaceutical industry, and since then, the era of pharmaceutical innovation in China has developed vigorously.   From the perspective of approval status, according to incomplete statistics by Blue Whale Finance reporters, since 2021 (December 29), at least 61 new drugs have been approved for marketing by the National Medical Products Administration (NMPA) of China. Among them, there are 25 domestically produced and 36 imported new drugs. Compared with previous years, both in terms of overall approval status and the proportion of domestically innovative drugs, this year has set a new historical high. In comparison, in 2017, a total of 39 new drugs were approved, including 4 domestically produced and 36 imported ones; in 2018, there were a total of 53 new drugs approved, including 12 domestically produced and 41 imported ones; in 2019, there were a total of 54 new drugs approved, including 14 domestically produced and 40 imported ones; in 2020, there were a total of 48 new drugs approved, including 23 domestically produced and 25 imported ones. It can be seen that in 2017, the number of imported innovative drugs approved was significantly higher than that of domestic innovative drugs. However, today, due to various forms such as independent research and development and authorized introduction by local enterprises, the R&D progress is gradually aligning with international standards. Data source: Compiled by Blue Whale Finance reporter   This year, the breakthroughs in some cutting-edge technologies have attracted strong industry attention upon approval for market launch. For instance, two CAR-T therapies approved domestically this year, from Fosun Kite and WuXi AppTec, respectively, are novel tumor immunotherapy methods that can be precise, rapid, efficient, and potentially cure cancer. The attention paid to these not only lies in their anticipated therapeutic efficacy but also in their often-millions-dollar treatment costs. How to commercialize these is a topic that high-value innovative therapies face next.   In addition, the COVID-19 pandemic continues, and drug breakthroughs remain a hot topic of concern. On December 8th, the National Medical Products Administration (NMPA) of China announced that it had emergency approved the registration applications for the combination therapy drugs Anbalimab Injection (BRII-196) and Remdesivir Monotherapy Injection (BRII-198), which are subsidiaries of Tengsheng Bio-Tech Group Co., Ltd. The country has finally welcomed its first independently developed neutralizing antibody combination therapy, achieving a zero breakthrough. In terms of funding, according to the prediction of Industrial Securities, the commercial market space for neutralizing antibody drugs for treating COVID-19 can reach $6.9 billion to $14.6 billion (RMB 44.8 billion to RMB 94.9 billion), indicating broad profit margins for neutralizing antibodies. Whether in terms of social attention or capital preference, the development of COVID-19 drugs undoubtedly touches the nerves of the public and capital.   In China, multiple COVID-19 drugs are racing against each other. The neutralizing antibody therapy DXP604, jointly developed by the team of Xie Xiaoliang from Peking University and Danxu Biotech, is undergoing phase II clinical trials in China; Junshi Biosciences has three COVID-19 treatment drugs advancing, including two neutralizing antibody therapies and one oral medication; in terms of oral medications, Azvudine, developed by Henan Normal University, is currently conducting phase III clinical trials in China, Brazil, and Russia, aiming to apply for conditional approval for marketing in December; Pekluramide, a promising drug developer, is conducting international multi-center phase III clinical trials in China, the United States, and Brazil, and has already obtained an Emergency Use Authorization (EUA) in Uruguay.   China and global healthcare financing reach new highs, with innovation in China moving closer to First-in-Class status According to the statistical analysis by Deng Yunting, an analyst at LeadLeo Research Institute, with the changes in the pandemic, the healthcare sector has seen broad application prospects, high risk resistance capabilities, and is more favored by capital markets. In 2020, global healthcare financing reached a record high, a year-on-year increase of 53%. In the second quarter of 2021, global financing amounted to as high as $31.224 billion, a year-on-year increase of 68.10%.   According to data compiled by the 'LeadLeo' research institute, in China, the total financing for the healthcare industry reached 100.234 billion yuan in the first half of 2021, a year-on-year increase of about 78.72%. In 2020, the total investment and financing for the healthcare industry reached 180.208 billion yuan, a year-on-year increase of 71%. Due to the short-term tightening of funds caused by the COVID-19 pandemic in the first half of 2020, financing projects for the healthcare industry dropped significantly. With the improvement in pandemic control, funds surged into the healthcare industry in the second half of the year, resulting in 470 financing events and raising over 100 billion yuan, bringing the total financing for 2020 to as high as 180.208 billion yuan. Data source: LeadLeo Research Institute Deng Yunting stated that biopharmaceuticals, internet healthcare, medical informatization, and the IVD field are hot investment and financing topics in global healthcare. In terms of biomedicine, cell and gene therapy, PROTAC, and ADC drugs have become hotspots. Following small molecule and antibody drugs, cell and gene therapy is expected to lead the next wave of treatment technologies. With products such as CAR-T being approved in China one after another, the market size for cell and gene therapy (CGT) in China is expected to reach $2.59 billion by 2025, with a CAGR (compound annual growth rate) of up to 276% from 2020 to 2025. The protein degradation targeting conjugate (PROTAC) track is poised to emerge, with Sequoia, Honghui, Tonghe Yucheng, and others investing early in related innovative pharmaceutical companies, and many Chinese pharmaceutical companies have also made arrangements. The global ADC drug market is rapidly expanding, with a significant acceleration in product launch speed in the past two years. China's ADC research pipeline is also poised to emerge, including the independently developed vedotinib by Rongchang Biotech, which was approved in June 2021, and the Chinese ADC market is about to enter a golden period. Regarding the question of what stage China's innovative drugs are in, Zhang Xiao, a partner at Yikai Capital and head of the pharmaceutical and biotechnology group, stated that China's R&D of innovative drugs started with generic drugs, went through the Me-too and Me-better phases, and is currently in a transitional period towards Best-in-Class, while also standing at a critical juncture for transitioning to First-in-Class.   "When Chinese innovative drugs first started, although domestic companies had accumulated some experience in small molecule generic drugs, they still lagged far behind overseas in terms of talent, technology, and regulatory policies. The capital market was also not fully developed, and innovation mainly focused on the research and development of Me-too drugs, which could be 10 years or more behind original research drugs. From 2010 to 2015, Chinese innovative drugs entered a transformation period, with overseas talents returning to China with R&D experience to join the wave of innovation. The time gap between Fast-Follow drugs and original research drugs was shortened to within 5 years, and molecules with the potential for Best-in-Class emerged. After 2015, the Chinese innovative drug market flourished, with review and approval gradually aligning with international standards. Chinese innovative drugs began to enter overseas markets, several products reached cooperation agreements with major international pharmaceutical companies, and capital reached an unprecedented level," said Zhang Xiao.   Zhang Xiao stated: Currently, China's innovative drugs are still in the transition period to Best-in-Class status. However, it should be noted that the differentiated R&D of drugs targeting the same target has high technical barriers. True B-I-C (Breakthrough-Into-Class) innovation should ultimately reflect differences sufficient to alter medication choices during actual clinical treatment applications. Taking PD-1 as an example, the current market competition is more about commercial layout. In terms of B-I-C drug innovation, Chinese innovative drugs still face challenges but also have tremendous opportunities.   Target homogenization is evident, and a lack of source innovation is caused by multiple factors The breakthrough of innovative drugs in China must overcome the homogenization of innovation targets. On November 10th, the Center for Drug Evaluation of the National Medical Products Administration released the 'Annual Report on the Current Status of Clinical Trials for New Drug Registration in China (2020)', which is the first report to comprehensively summarize and analyze the current status of clinical trials for new drug registration in China.   The Report points out that the number of new drug clinical trials and the variety of drugs in China have increased significantly compared to previous years. At the same time, Class 1 new drugs account for a relatively high proportion. However, the distribution of drug targets and indications is relatively concentrated, indicating that while new drug clinical trials are developing rapidly in China, there is also a problem of homogenization in clinical trials.   The report shows that in 2020, the Drug Clinical Trial Registration and Information Publicity Platform registered a total of 2602 clinical trials. However, the top 10 target drugs registered for clinical trials were PD-1, CYP51A1, VEGFR, PD-L1, DNA, EGFR, microtubule, HER2, GLP-1R, and JAK1, with a total number of 389 varieties, accounting for more than 10%.   In terms of the number of clinical trials, the aforementioned top 10 targets also have a highly concentrated clinical presence. Among them, more than 60 clinical trials have been conducted for targets such as PD-1, VEGFR, and PD-L1, with nearly 100 clinical trials targeting the PD-1 target alone.   Additionally, in terms of indications, clinical trials are mainly concentrated in areas such as anti-tumor and anti-infection. The indications for biologics and chemical drugs are primarily anti-tumor, accounting for 42.1% and 47.3%, respectively.   Zhu Yi, Executive Director of the Healthcare Business Unit at Frost & Sullivan Greater China, pointed out that although China has a rich pipeline of innovative drugs, there is serious homogenization. Taking PD-1/L1 inhibitors as an example, as of December 28, 2021, the Chinese NMPA had approved 11 products, including up to seven domestically produced innovative varieties, which is the highest number in the world. Similar phenomena are also occurring in the research and development of other popular targets. Homogeneous competition has led to waste of innovative R&D resources and indirect encroachment on the R&D resources for other clinical needs. Therefore, how to guide the rational allocation of innovative R&D resources will be an important matter for China's innovative development. Regarding the issue of innovation homogenization, Zhang Xiao interprets the concentration on the research and development of popular targets as a lack of source innovation. He points out that the current lack of source innovation is the result of multiple dimensions influencing it. Firstly, there is still a gap between China's scientific research and translational levels compared to overseas, with the university research evaluation system being biased towards projects with lower risks and clear outputs. The average conversion rate of effective patents into products for industries is less than 10%.   Secondly, payment-side bottlenecks limit the flow of capital towards source innovation. In the United States, small enterprises lead innovation, with multinational pharmaceutical companies supporting them through incubation or product introduction while taking on R&D risks. MNCs add and terminate pipelines at a similar rate each year, making high R&D risk a norm. Currently, the cooperation of leading large pharmaceutical companies in China mainly focuses on mature products, increasing the pressure on biotech companies to invest in clinical manpower and funds.   Finally, at the capital end, the proportion of venture capital funds used in China to support incubation and transformation is much lower than that of leading global biopharmaceutical countries. At the same time, the capital market's ability to absorb clinical failures is still relatively low, with the primary and secondary markets essentially tending towards risk aversion, resulting in certain financial pressure on source innovation.   The changes of giants under China's innovation Driven by innovation in China, for multinational pharmaceutical companies (MNCs), the Chinese market and innovation are becoming increasingly important. It can be seen that they are increasingly willing to invest resources in China's innovation, whether it is in clinical BD, incubation, investment, or other aspects.   In terms of clinical practice, China has gradually become part of the global clinical trials conducted by multinational corporations (MNCs). Novartis announced an adjustment to its R&D strategy in China, planning to make Shanghai's R&D center a global excellence center for early clinical development of drugs on Novartis' R&D pipeline. Boehringer Ingelheim launched the China In and China Key projects, defaulting to include all Boehringer Ingelheim's early clinical and global registration studies in China, enabling China to submit drug marketing applications simultaneously with the United States, the European Union, and Japan.   In terms of product BD, taking Amgen's strategic cooperation with BeiGene on multiple products as an example, in 2020, MNC accelerated its cooperation with Chinese pharmaceutical companies both through license-in and license-out. Numerous collaborations such as Roche's license-out deal for the development of a universal CAR-T and TCB bispecific antibody with Innovent Biologics, as well as AbbVie's license-in deal for the introduction of the Tianjing CD47 monoclonal antibody, reflect MNC's recognition of the R&D and execution capabilities of Chinese pharmaceutical companies.   In terms of incubation, more and more multinational corporations (MNCs) are starting to establish innovation incubators in China, deeply participating in Chinese innovation. Roche's accelerator located in Zhangjiang, Shanghai is the first accelerator independently established and operated by Roche globally. Startups that join can receive full-chain resource support from Roche, ranging from early research and development to later commercialization, as well as opportunities for financial support such as research funds. Similar incubators include Merck Innovation Center and Johnson & Johnson's JLABS incubator.   In terms of investment, MNCs participate in the Chinese innovative drug market through direct investment or by investing in funds. The Global Healthcare Industry Fund jointly established by AstraZeneca and CICC Capital is AstraZeneca's first healthcare industry fund raised globally and has so far been the largest in scale. Sanofi has made strategic investments in Kite Pharma Innovation Fund, indirectly supporting Chinese healthcare startups.   The future is promising Regarding the prospects for where future innovative drugs will go, Zhang Xiao stated that resource influx, crowded competition tracks, full-fledged competition, and rational capital returns are inevitable stages for every emerging industry. Continuous experimentation and trial-and-error are also signs that the research and development of innovative drugs remains active.   He stated that the integration of technologies such as AI with pharmaceuticals in the future is expected to bring new technical means for target discovery and drug development, helping to improve R&D efficiency and success rates. The continuous development of industries such as CXO can also contribute to optimizing resource allocation. There are still vast blue oceans waiting to be explored in specialized tracks like ophthalmology. In very specific areas, there is a smaller gap between Chinese innovative drugs and world-leading levels, and overseas R&D stages are still early, potentially offering opportunities for overtaking on a curve. For example, gene editing, mRNA, and iPSC are fields that have seen many outstanding scientists participating recently, with high capital support and investment.   "Although there is still a long way to go for China's innovative drugs to reach a complete and mature ecosystem, it also harbors countless opportunities, and the future is promising," said Zhang Xiao.   *This article is reprinted from 'Blue Whale Finance', authored by Tu Jun, with the original title 'Review and Outlook | The difficulty of listing as an innovation highlight masks the embarrassment of insufficient source innovation. Is local innovative drug 'the future has come' or 'dividend has ended'?'.

According to Xinhua News Agency, a recent executive meeting of the State Council was held to determine cross-cycle adjustment measures to promote stable foreign trade development; arrangements were made for the implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP) after its entry into force. The meeting pointed out that through the joint efforts of relevant international and domestic parties, the RCEP will officially come into effect on January 1, 2022. It is necessary to support enterprises to seize the opportunity of the agreement's implementation, enhance their competitiveness in the international market, further improve the level of trade and investment development, and force domestic industrial upgrading. On December 23, 2021, Gao Feng, spokesperson for the Ministry of Commerce, stated at a regular press conference that preparations for the domestic implementation of the RCEP are now complete. How to interpret China's formal accession to the RCEP? Which industries in China will benefit from the RCEP? After joining the RCEP, what changes are predicted to occur in China's global industrial chain layout? What impact does the RCEP have on China's foreign trade? How does the RCEP guide client enterprises to benefit from tariff reductions and find new opportunities? Dr. Wang Xin, a global partner at Frost & Sullivan (Frost & Sullivan, abbreviated as "Frost & Sullivan") and President of Greater China, recently spoke with the CGTN Global Business program of China International Television about his views on China's accession to the RCEP.   Reporter: What is Frost & Sullivan's interpretation of China's accession to the RCEP on January 1 st ? Reporter: What is Frost & Sullivan's interpretation of China's official accession to the RCEP on January 1? Neil Wang, Dr. of Economics, Nanyang Technological University: Thank you for your question. There is no doubt that the Regional Comprehensive Economic Partnership (RCEP) is important for Asia's regional economic integration and will drive the global economy closely around Asia, Europe, and North America. We believe that China's participation in the RCEP can promote China's international trade and outbound investment in many ways. By leveraging the closed-loop value chain in the RCEP region, we can achieve technological advancement, market integration, and industrial chain upgrading. This will reduce China's trade dependence on the United States and Europe and help further elevate China's international status. Dr. Wang Xin: Thank you for your question. Undoubtedly, the RCEP is of great significance to the economic integration of the Asian region and will drive the global economy closely centered around Asia, Europe, and North America. We believe that China's accession to the RCEP can promote international trade and foreign investment in various aspects. By utilizing the closed-loop value chain within the RCEP region, it can achieve technological upgrading, market integration, and industrial chain upgrading. This will reduce China's trade dependence on the United States and Europe and help further enhance China's international status.     Reporter: In your opinion, which industries in China will benefit from RCEP? Reporter: In your opinion, which industries in China will benefit from the RCEP agreement? Neil Wang, PhD: To promote the upgrading of China's high-end manufacturing industry and enhance China's position in the global supply chain. Dr. Wang Xin: Promote the industrial upgrading of China's high-end manufacturing industry and enhance China's position in the global supply chain. The RCEP will help upgrade China's manufacturing industry by improving the quality standards of Chinese products and driving higher-quality development in the economy. The agreement covers international trade and competition, market openness, intellectual property rights, e-commerce, and other aspects. From the perspectives of investment protection, freedom, and convenience, it will have a systematic and comprehensive impact on our foreign trade and investment development. With the upgrade in China's industrial structure and the enhancement of mid-to-high-end manufacturing capabilities, China's manufacturing industry will gradually shift to high-tech, high-value-added sectors in the international division of labor. The RCEP will guide and refine the regional trade division of labor, which is conducive to the extension of China's industrial chain and the upgrading of its value chain. The RCEP will help upgrade China's manufacturing industry, improve the quality standards of Chinese products, and promote high-quality development of the Chinese economy. The RCEP agreement covers multiple aspects such as international trade and competition, market opening, intellectual property rights, e-commerce, etc., and will have a systematic comprehensive impact on the development of China's foreign trade and investment from perspectives such as investment protection, freedom, and facilitation. With the upgrading of China's industrial structure and the enhancement of the strength of mid- to high-end manufacturing, China's manufacturing industry will gradually shift towards high technology and high added value in the international division of labor. The RCEP will guide and refine regional trade division of labor, which is conducive to the extension of China's industrial chain and the improvement of its value chain.   Reporter: What changes do you expect to happen to China's position in the global industrial chain layout after joining the RCEP? Reporter: After joining the RCEP, what changes do you predict will occur to China's position in the global industrial chain layout? Neil Wang, PhD: China will take advantage of the RCEP to promote regional economic integration and global economic and trade cooperation. Dr. Wang Xin: China will leverage the RCEP to advance regional economic integration and global economic and trade cooperation. The signing of the RCEP Agreement means that tariffs, tariff barriers, and other trade restrictions of regional member countries will be significantly reduced; trade terms will be fair, reasonable, and transparent, promoting rapid circulation of factors in the region, free and convenient trade and investment, and closer cooperation between industrial chains and supply chains. This is conducive to further expanding China's import and export trade, as well as promoting regional economic integration. The signing of the RCEP means that tariffs, tariff barriers, and other trade restrictions among member countries within the region will be significantly reduced; trade terms will become more fair, reasonable, and transparent. This will promote rapid factor flow within the region, free and convenient trade and investment, closer cooperation in industrial chains and supply chains, which is conducive to China's further expansion of import and export trade and the integration of regional economies. Among the 15 RCEP countries, China is the absolute leader in terms of population and GDP, thus placing it in a key position in the value chain cooperation across the entire RCEP region. China has developed a technological lead, and with the labor advantage of ASEAN countries and the natural resources of Australia and New Zealand, a 'world factory' led by China is being formed at an accelerating pace. Multinational companies will prefer to locate their industrial chains in the RCEP region, and China's important position in the global industrial chain pattern will be further consolidated. Among the RCEP 15 countries, China is definitely leading in terms of population and GDP. Therefore, China holds a key position in value chain cooperation across the entire RCEP region. China has already formed a technological leadership advantage. Leveraging the labor advantages of ASEAN countries and the natural resources of New Australia, a 'world factory' led by China is accelerating its formation. Multinational companies tend to locate their industrial chains in the RCEP region, further consolidating China's important position in the global industrial chain pattern.   Reporter: What are the impacts that foreign trade has brought to China? Reporter: What impact does the RCEP have on China's foreign trade? Neil Wang, PhD: From the perspective of foreign relations, the RCEP is conducive to promoting economic and trade cooperation among China, Japan and South Korea, easing trade tensions between China and the US, and reducing dependence on the US. Dr. Wang Xin: From the perspective of foreign relations, the RCEP agreement is conducive to promoting economic and trade cooperation among China, Japan, and South Korea, alleviating Sino-US trade frictions, and reducing dependence on the US. Among the 15 countries of the Regional Comprehensive Economic Partnership (RCEP), China, Japan, and South Korea account for approximately 80% of the total economic value. It is expected that cooperation among these three countries will be further improved under the framework of the agreement. Firstly, the RCEP is the first free trade agreement among China, Japan, and South Korea. Over the past decade, the overall trade volume of the three countries fluctuated due to trade frictions between China and the United States. The signing of the RCEP agreement is conducive to promoting smoother and steadier trade among China, Japan, and South Korea. Secondly, increased trade cooperation among the three countries will assist China's trade diversion. While stimulating China's trade and economic growth, the cooperation may reduce China's dependence on the US market, making China more proactive and favorable in Sino-US trade relations to compensate for the reduction in China's foreign trade caused by the friction between the US and China. Among the RCEP 15 countries, the economies of China, Japan, and South Korea account for about 80%. Under the framework of the agreement, cooperation among these three countries is expected to deepen further. Firstly, RCEP represents the first time that China, Japan, and South Korea have reached a free trade agreement. In the past decade, affected by Sino-US trade frictions, the overall trade volume of the three countries has fluctuated significantly. The signing of the RCEP agreement is conducive to promoting smoother and more stable trade between China, Japan, and South Korea. Secondly, increased trade cooperation among China, Japan, and South Korea will assist in the transfer of China's foreign trade. While promoting China's trade and economic growth, it can help reduce China's dependence on the US market, enabling China to gain more initiative in Sino-US trade relations and compensate for the reduction in China's foreign trade caused by Sino-US trade frictions. Overall, I believe that the RCEP can make China's existing international supply chain more stable and enhance China's ability to withstand risks, which will have positive effects on China's economic development, security, and stability. At the same time, when each member country can fully leverage its own advantages in factors of production, the RCEP will effectively empower the development of intra-Asia trade cooperation. By adjusting the layout of foreign trade and investment and optimizing resource allocation, member countries will strengthen the critical position of East Asia in the global economy. Thank you. Overall, we believe that through the RCEP, China's existing international supply chain cooperation can be made more stable, enhancing its ability to resist risks and thus having a positive impact on China's economic development, security, and stability. At the same time, the RCEP will effectively empower trade collaboration within the Asian region. Each contracting party can fully leverage its production factor advantages, optimize resource allocation by adjusting foreign trade and investment layouts, and enhance the key position of East Asian economies in the global economy. Thank you. Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss "how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction"? Reporter: Thank you very much, Dr. Wang. You have just provided a comprehensive and in-depth interpretation from a macro perspective. In fact, we are also very concerned about the benefits that RCEP can bring to the development of Chinese enterprises. Could you please focus on how 'RCEP guides customer enterprises to benefit from tariff reductions and find new opportunities?' Neil Wang, PhD: The RCEP's 'tariff-free' status will bring huge development opportunities for Chinese enterprises in various industries. Dr. Wang Xin: The RCEP 'zero tariffs' will bring tremendous development opportunities to enterprises in various industries across China. The RCEP 'tariff-free' refers to the ultimate achievement of zero tariffs on over 90% of the goods traded within the RCEP region once the agreement comes into effect, with immediate zero tariffs on some goods or zero tariffs for others within ten years. The introduction of this policy means that member countries will liberalize trade in goods in a short period of time. This enables beneficiary enterprises to significantly reduce production and investment costs, expand markets, and improve competitiveness globally. RCEP 'zero tariffs' mean that after the agreement comes into effect, more than 90% of the goods traded within the region will eventually achieve zero tariffs, with some goods immediately reduced to zero tariffs and others within ten years. The introduction of this policy implies that the contracting parties will liberalize trade in goods within a relatively short period, which will help reduce production and investment costs for Chinese enterprises, expand market space, and enhance their international competitiveness. In terms of imports, 'tariff-free' helps enterprises expand the procurement scale of raw materials, automotive, electronics, and other components at much lower costs, better meeting domestic market demands for consumer upgrading, cost reduction, efficiency improvement for enterprises, and supply chain optimization. From an import perspective, 'zero tariffs' help enterprises expand their procurement of raw materials, auto parts, electronic components, and other parts at lower costs, better meeting domestic market needs for consumption upgrades, reducing costs and increasing efficiency for enterprises, and optimizing the supply chain ecosystem. Regarding exports, the 'tariff-free' policy will significantly reduce product prices, promoting more Chinese products to be marketed internationally, removing many challenges faced by enterprises in the international markets. Especially for products with export advantages, 'zero tariffs' enable Chinese enterprises to enhance their competitiveness in the global market and replace the market shares of non-member countries, leading to further export expansion. From an export standpoint, the 'zero tariffs' policy will significantly reduce product prices, drive more Chinese products into international markets, and eliminate many challenges faced by enterprises in the international marketplace. Especially for products with export advantages, 'zero tariffs' will allow Chinese enterprises to enhance their competitiveness in the global market, replace the market share of non-member countries, and further expand exports. In addition, the RCEP cumulative rules of origin are highly beneficial for small and medium-sized enterprise exports. It stipulates that when goods are exported to any RCEP member country, all intermediate goods and accessories from any RCEP country can be included in the value-added percentage of the origin to meet the regional value content requirement of 40%. This makes it easier for businesses to ensure their products meet RCEP origin requirements, potentially enhancing the flexibility and autonomy of industry chain layout. Therefore, 'zero tariffs' will bring about supply chain optimization, enhanced market discourse, and expanded global influence for Chinese enterprises with broader development prospects. Furthermore, the RCEP cumulative rules of origin are very beneficial for the exports of small and medium-sized enterprises. They stipulate that when goods are exported to any RCEP member country, intermediate goods and accessories from any RCEP country can be included in the value-added percentage of the origin to meet the final export product's value-added requirement of 40%, greatly lowering the threshold for benefiting from these rules and enhancing the flexibility and autonomy of industry chain layout. Therefore, 'zero tariffs' provide broad development opportunities for Chinese enterprises to optimize their supply chains, enhance their market discourse power, and expand their global influence.

On December 29, CSSC Technology Group Co., Ltd., a listed company under China State Shipbuilding Corporation, and CSSC Power Co., Ltd. respectively issued announcements on major asset restructuring. CSSC Power announced that in order to standardize the competition among diesel engine businesses under China State Shipbuilding Corporation, the company plans to jointly invest with CSSC Industry Group and CSSC Shipbuilding to establish a joint venture. After the completion of this transaction, CSSC Power will hold a controlling stake in the joint venture; CSSC Technology Group issued an announcement stating that it plans to issue shares to acquire part or all of the equity of CSSC Marine Engineering, CSSC Wind Power Development, Xinjiang Haiwei, Luoyang Shuangrui, and Lingjiu Electric, and intends to raise matching funds. What is the global pattern of the shipbuilding industry? Is China State Shipbuilding Corporation choosing to carry out major asset restructuring at this time point in order to cope with the major cyclical explosion in the shipbuilding industry? Do domestic shipbuilding enterprises have made arrangements for high-end ships? How can they strengthen technological progress? Dr. Wang Xin, a global partner and President of Greater China at Frost & Sullivan (Frost & Sullivan, abbreviated as: Frost & Sullivan), was interviewed by Securities Daily, discussing the future development path of China's shipbuilding industry from the perspective of the major asset restructuring of 'China's Divine Ships'.   The major asset restructuring of 'China's Divine Ship' has kicked off. On December 29, CSSC Technology Group Co., Ltd., a listed company under China State Shipbuilding Corporation, and CSSC Power Co., Ltd. respectively issued announcements on major asset restructuring. CSSC Power announced that in order to standardize the competition among diesel engine businesses under China State Shipbuilding Corporation, the company plans to jointly invest with CSSC Industry Group and CSSC Shipbuilding to establish a joint venture. After the completion of this transaction, CSSC Power will hold a controlling stake in the joint venture; CSSC Technology Group issued an announcement stating that the company plans to issue shares to acquire part or all of the equity of CSSC Marine Equipment, CSSC Wind Power Development, Xinjiang Haiwei, Luoyang Shuangrui, and Lingjiu Electric, and also plans to raise supporting funds. With the disclosure of the aforementioned announcement, on that day, stocks in the CSSC group opened higher, among which CSSC HanGuang rose by 12%, closing at 18.29 yuan per share. China Coastal Defense Group hit the daily limit up, with CSSC Emergency Response Group surging by more than 7%. Zhongyongyang, China Power, CSSC Marine Engineering & Technology, and others followed suit. Pan Helin, Executive Dean of the Digital Economy Research Institute at Zhongnan University of Economics and Law, said in an interview with a reporter from Securities Daily, "This asset restructuring is an optimization and integration of internal operations by CSSC. For example, the offshore wind business has been incorporated into CSSC Technology, and the oil rig business has been moved into China National Offshore Oil Corporation (CNOC). This promotes subsidiaries to focus on their main businesses, enabling them to concentrate their efforts on developing their core competencies, making business operations more focused, achieving larger-scale integration, and enhancing the company's global competitiveness." Hu Qimu, chief researcher at the China Iron and Steel Economic Research Institute, said in an interview with a reporter from Securities Daily, "After the merger of CSSC and CRRC, internal business integration is a very urgent task. The realization of synergies is not simply about adding up scales, but about optimizing the structure through specialized integration to enhance advantages, share resources, and achieve ecological synergy." Hu Qimu told the Securities Daily reporter, 'The restructuring of listed companies under China State Shipbuilding Corporation is just a step in internal business integration, indicating that the group's integration efforts will be gradually implemented.'   Focus on core business to enhance market competitiveness Looking back at 2019, in order to deepen the reform of state-owned enterprises and further focus on the main business of ships, CSSC (China State Shipbuilding Corporation) and CSIC (China State Shipbuilding Heavy Industry Corporation), which are part of the same group, implemented a joint restructuring. On November 26th of that year, they held their founding meeting in Beijing, establishing China State Shipbuilding Group. For a time, the news of the birth of 'China's Divine Ship' spread throughout the market. On July 1, 2021, nine listed companies under China State Shipbuilding Corporation (CSSC) collectively issued an announcement. CSSC obtained 100% equity of CSSCIC and CSSC Heavy Industry Corporation through the gratuitous transfer of state-owned shares, thereby becoming the actual controller of the nine listed companies. This has officially put forward the agenda for CSSC to resolve the issue of horizontal competition among its listed companies. According to the announcement released by China Power this time, in order to further regulate the competition among diesel engine businesses under CSSC Group, the company plans to jointly invest with CSSC Industry Group and CSSC Shipbuilding to establish a joint venture. The target assets for investment are the shares held by all parties involved in the transaction, namely CSSC Power, CSSC Marine Diesel, Shaanxi Diesel Heavy Industry, and Hebei Diesel Heavy Industry. China Power stated that after the completion of this transaction, it will hold a controlling stake in the joint venture. Zhang Linxiang, a staff member of the Power Securities Department of China, told the Securities Daily reporter, 'From a regulatory perspective, this asset restructuring is conducive to solving the problem of inter-industry competition. From a business development standpoint, after this restructuring, the diesel engine business has been further coordinated and developed, reducing internal competition and enhancing the company's bargaining power and market voice. In addition, low-speed engines are mainly used on large ocean-going ships. With the recovery of the shipbuilding industry this year and riding on the wave of the industry's momentum, the company's business is expected to see further development.' CSIC Technology announced on the same day that its indirect controlling shareholder, CSSC Group, is currently planning major matters related to the company. The matter is expected to involve issuing shares to acquire 100% equity of CSSC Offshore Container Containers Co., Ltd., 88.58% equity of CSSC Wind Power Development Co., Ltd., 100% equity of Xinjiang Haiwei Co., Ltd., a minority stake of 44.64% in Luoyang Shuangrui Co., Ltd., and a minority stake of 10% in Lingjiu Electric Co., Ltd., as well as plans to raise matching funds. Hu Qimu told reporters, 'This asset restructuring will inject wind power assets and diesel engine assets into two specialized companies respectively. In fact, it is about creating two major professional operation platforms for wind power and diesel engines. This is conducive to the specialized integration of resources such as R&D, production, and channels in these business chains, focusing on the main business to enhance market competitiveness.' On December 29th, CSSC issued a notice stating that CSSC Group Co., Ltd. is planning the merger of CSSC Industry Corporation Limited, CSSC Industry Co., Ltd. (hereinafter referred to as 'CSSC') with CSSC Heavy Industry Group Power Co., Ltd. In response, someone familiar with the company told the Securities Daily reporter that this restructuring will further highlight the main responsibilities and businesses, and promote high-quality development.   Search for breakthroughs in the high-end ship sector With the integration and development of China State Shipbuilding Corporation, China's shipbuilding industry has been making visible progress towards high-precision and advanced fields at an accelerating pace, moving towards the goal of becoming a strong shipbuilding nation from a major shipbuilder. Judging from the public data, In the first half of this year, China's international market share in three major shipbuilding indicators remained above 40%. The volume of completed shipyards, new orders received, and on-hand orders accounted for 44.9%, 51.0%, and 45.8% of the world total respectively, measured by deadweight tonnage. Meanwhile, the global shipbuilding industry is structured with China, Japan, and South Korea standing in a tripartite confrontation, and the trend towards a split between China and South Korea is becoming increasingly evident. According to data from the Shipbuilding Industry Association, from January to November this year, the country's shipbuilding completed 35.88 million deadweight tons, a year-on-year increase of 7.9%. It received new ship orders worth 63.64 million deadweight tons, a year-on-year increase of 182.6%. By the end of November, there were 96.39 million deadweight tons in hand, a year-on-year increase of 35.9%. According to the financial data disclosed by CSSC from January to September this year, the group's operating revenue, new contracts received, total industrial output value, net profit, and total profit increased by 9.3%, 34.5%, 12.3%, 26.1%, and 22.9% year-on-year respectively, laying a solid foundation for achieving the annual target tasks. The operation of the shipbuilding and maritime industry has continuously made new breakthroughs, with its international market share remaining at the top among global shipbuilding groups. Is the choice by China State Shipbuilding Corporation to carry out major asset restructuring at this time point in order to cope with a major outbreak of the cyclical boom in the shipbuilding industry? Hu Qimu said, 'The focus of the major asset restructuring of CSSC this time is on power generation, which is actually about industrial upgrading rather than capacity expansion.'     "From an industry perspective, in 2020, there were approximately 400 shipyards globally. The world's shipbuilding industry generally maintained a competitive landscape of 'three giants' (China, South Korea, and Japan), while Europe and America still possess advantages in the construction of military ships and luxury cruise ships. Vertically, the global shipbuilding industry has been deeply integrated, with frequent emergence of shipbuilding giants. With the deep integration of new-generation information and communication technology with shipbuilding technology, the influence of labor costs on the transfer of the shipbuilding industry has relatively weakened, and the importance of technical factors has become increasingly prominent." Wang Xin, Global Partner at Frost & Sullivan and President of Greater China, told the Securities Daily, "In recent years, our country has continuously made progress in high-end ship types. The first large luxury cruise ship has started construction at Waigaoqiao Shipyard, and Hudong Zhonghua has also signed an order for a large LNG vessel worth 20 billion yuan. In the future, it is expected that China and South Korea will continue to engage in fierce competition around high-end ship types." Wang Xin told reporters, 'With the deep integration of information technology and manufacturing, and as international maritime affairs put forward higher requirements for ship environmental protection, shipbuilding will develop towards greener and more intelligent products and a higher-end product structure. High-tech and high-value-added ships need to rapidly improve the design and construction levels of LNG ships, large LPG ships, and other products, creating high-end brands; break through technical difficulties in the design and construction of luxury cruise ships; and actively carry out research and development of Arctic new shipping routes ships, new energy ships, etc.' " In the future, we should fully rely on local talent policies to attract high-quality talents from home and abroad, encourage industry-academia integration, and apply what has been learned. At the same time, we must continuously strengthen industrial layout adjustments, promote rational resource allocation, drive the development of the entire industrial chain, continue to deepen reforms, optimize the industrial structure, and enhance independent innovation capabilities. " Wang Xin said." In addition to continuously advancing asset integration, CSSC is also implementing asset securitization within the three-year action plan for state-owned enterprise reform. As CSSC Technology, a listed company under China State Shipbuilding Corporation, plans to issue shares to acquire partial or all equity of CSSC Marine Engineering, CSSC Wind Power Development, Xinjiang Haiwei, Luoyang Shuangrui, and Lingjiu Electric, as well as raise matching funds, the asset securitization of CSSC Corporation has taken an important step forward. The 'Three-Year Action Plan for State-Owned Enterprise Reform (2020-2022)' proposes that state-owned enterprises should become market entities with core competitiveness. The mixed reform, restructuring and integration of state-owned enterprises, as well as the reform of the state-owned asset supervision system, will enter a new stage of rapid and substantial progress, with more than 70% of the total tasks completed by the end of 2021. Chen Dingru, an analyst at Zhongtai Securities, said that the 'Three-Year Action Plan for State-Owned Enterprise Reform' is about to enter a critical year, and reform dividends are expected to be released more rapidly. The mixed-ownership reform of state-owned military enterprises is an important part of state-owned enterprise reform.   *This article is reprinted from 'Securities Daily', with reporters Jiao Yue, Shi Lu, and Zhang Xiaoyu. The original title was 'The Integration of 'China's Divine Ship' Breaks Ice, with Listed Companies Under It Taking the Lead in Reorganizing'.

Frost & Sullivan insights According to Xinhua News Agency, a recent executive meeting of the State Council was held to determine cross-cycle adjustment measures to promote stable foreign trade development; arrangements were made for the implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP) after its entry into force. The meeting pointed out that through the joint efforts of relevant international and domestic parties, the RCEP will officially come into effect on January 1, 2022. It is necessary to support enterprises to seize the opportunity of the agreement's implementation, enhance their competitiveness in the international market, further improve the level of trade and investment development, and force domestic industrial upgrading. On December 23, 2021, Gao Feng, spokesperson for the Ministry of Commerce, stated at a regular press conference that all preparatory work for the domestic implementation of the RCEP has been completed. How to interpret China's formal accession to the RCEP? Which industries in China will benefit from the RCEP? After joining the RCEP, what changes are predicted to occur in China's global industrial chain layout? What impact does the RCEP have on China's foreign trade? How does the RCEP guide client enterprises to benefit from tariff reductions and find new opportunities? Dr. Wang Xin, a global partner at Frost & Sullivan (Frost & Sullivan, abbreviated as "Frost & Sullivan") and President of Greater China, recently spoke with the CGTN Global Business program of China International Television about his views on China's accession to the RCEP.   CGTN China International Television Station Reporter: What is Frost & Sullivan's interpretation of China's accession to the RCEP on January 1 st ?   Reporter: What is Frost & Sullivan's interpretation of China's official accession to the RCEP on January 1?   Neil Wang, Dr. of Economics, Nanyang Technological University: Thank you for your question. There is no doubt that the Regional Comprehensive Economic Partnership (RCEP) is important for Asia's regional economic integration and will drive the global economy closely around Asia, Europe, and North America. We believe that China's participation in the RCEP can promote China's international trade and outbound investment in many ways. By leveraging the closed-loop value chain in the RCEP region, we can achieve technological advancement, market integration, and industrial chain upgrading. This will reduce China's trade dependence on the United States and Europe and help further elevate China's international status.   Dr. Wang Xin: Thank you for your question. Undoubtedly, the RCEP is of great significance to the economic integration of the Asian region and will drive the global economy closely centered around Asia, Europe, and North America. We believe that China's accession to the RCEP can promote international trade and foreign investment in various aspects. By utilizing the closed-loop value chain within the RCEP region, it can achieve technological upgrading, market integration, and industrial chain upgrading. This will reduce China's trade dependence on the United States and Europe and help further enhance China's international status. Reporter:  In your opinion, which industries in China will benefit from RCEP?    Reporter: In your opinion, which industries in China will benefit from the RCEP agreement?   Neil Wang, PhD: To promote the upgrading of China's high-end manufacturing industry and enhance China's position in the global supply chain.   Dr. Wang Xin: Promote the industrial upgrading of China's high-end manufacturing industry and enhance China's position in the global supply chain.   The RCEP will help upgrade China's manufacturing industry by improving the quality standards of Chinese products and driving higher-quality development in the economy. The agreement covers international trade and competition, market openness, intellectual property rights, e-commerce, and other aspects. From the perspectives of investment protection, freedom, and convenience, it will have a systematic and comprehensive impact on our foreign trade and investment development. With the upgrade in China's industrial structure and the enhancement of mid-to-high-end manufacturing capabilities, China's manufacturing industry will gradually shift to high-tech, high-value-added activities in the international division of labor. The RCEP will guide and refine the regional trade division of labor, which is conducive to the extension of China's industrial chain and the upgrading of its value chain.   The RCEP will help upgrade China's manufacturing industry, improve the quality standards of Chinese products, and promote high-quality development of the Chinese economy. The RCEP agreement covers multiple aspects such as international trade and competition, market opening, intellectual property rights, e-commerce, etc., and will have a systematic comprehensive impact on the development of China's foreign trade and investment from perspectives such as investment protection, freedom, and facilitation. With the upgrading of China's industrial structure and the enhancement of the strength of mid- to high-end manufacturing, China's manufacturing industry will gradually shift towards high technology and high added value in the international division of labor. The RCEP will guide and refine regional trade division of labor, which is conducive to the extension of China's industrial chain and the improvement of its value chain.   Reporter: What changes do you expect to happen to China's position in the global industrial chain layout after joining the RCEP?   Reporter: After joining the RCEP, what changes do you predict will occur to China's position in the global industrial chain layout?   Neil Wang, PhD: China will take advantage of the RCEP to promote regional economic integration and global economic and trade cooperation.   Dr. Wang Xin: China will leverage the RCEP to advance regional economic integration and global economic and trade cooperation.   The signing of the RCEP Agreement means that tariffs, tariff barriers, and other trade restrictions of regional member countries will be significantly reduced; trade terms will be fair, reasonable, and transparent, promoting rapid circulation of factors in the region, free and convenient trade and investment, and closer cooperation between industrial chains and supply chains. This is conducive to further expanding China's import and export trade, as well as promoting regional economic integration.   The signing of the RCEP means that tariffs, tariff barriers, and other trade restrictions among member countries within the region will be significantly reduced; trade terms will become more fair, reasonable, and transparent. This will promote rapid factor flow within the region, free and convenient trade and investment, closer cooperation in industrial chains and supply chains, which is conducive to China's further expansion of import and export trade and the integration of regional economies.   Among the 15 RCEP countries, China is the absolute leader in terms of population and GDP, thus placing it in a key position in the value chain cooperation across the entire RCEP region. China has developed a technological lead, and with the labor advantage of ASEAN countries and the natural resources of Australia and New Zealand, a 'world factory' led by China is being formed at an accelerating pace. Multinational companies will prefer to locate their industrial chains in the RCEP region, and China's important position in the global industrial chain pattern will be further consolidated.   Among the RCEP 15 countries, China is definitely leading in terms of population and GDP. Therefore, China holds a key position in value chain cooperation across the entire RCEP region. China has already formed a technological leadership advantage. Leveraging the labor advantages of ASEAN countries and the natural resources of New Australia, a 'world factory' led by China is accelerating its formation. Multinational companies tend to locate their industrial chains in the RCEP region, further consolidating China's important position in the global industrial chain pattern. Reporter:  What are the impacts that foreign trade has brought to China?   Reporter: What impact does the RCEP have on China's foreign trade?   Neil Wang, PhD: From the perspective of foreign relations, the RCEP is conducive to promoting economic and trade cooperation among China, Japan and South Korea, easing trade tensions between China and the US, and reducing dependence on the US.   Dr. Wang Xin: From the perspective of foreign relations, the RCEP agreement is conducive to promoting economic and trade cooperation among China, Japan, and South Korea, alleviating Sino-US trade frictions, and reducing dependence on the US.   Among the 15 countries of the Regional Comprehensive Economic Partnership (RCEP), China, Japan, and South Korea account for approximately 80% of the total economic value. It is expected that cooperation among these three countries will be further improved under the framework of the agreement. Firstly, the RCEP is the first free trade agreement among China, Japan, and South Korea. Over the past decade, the overall trade volume of the three countries fluctuated due to trade frictions between China and the United States. The signing of the RCEP agreement is conducive to promoting smoother and steadier trade among China, Japan, and South Korea. Secondly, increased trade cooperation among the three countries will assist China's trade diversion. While stimulating China's trade and economic growth, the cooperation may reduce China's dependence on the US market, making China more proactive and favorable in Sino-US trade relations to compensate for the reduction in China's foreign trade caused by the friction between the US and China.   Among the RCEP 15 countries, the economies of China, Japan, and South Korea account for about 80%. Under the framework of the agreement, cooperation among these three countries is expected to deepen further. Firstly, RCEP represents the first time that China, Japan, and South Korea have reached a free trade agreement. In the past decade, affected by Sino-US trade frictions, the overall trade volume of the three countries has fluctuated significantly. The signing of the RCEP agreement is conducive to promoting smoother and more stable trade between China, Japan, and South Korea. Secondly, increased trade cooperation among China, Japan, and South Korea will assist in the transfer of China's foreign trade. While promoting China's trade and economic growth, it can help reduce China's dependence on the US market, enabling China to gain more initiative in Sino-US trade relations and compensate for the reduction in China's foreign trade caused by Sino-US trade frictions.   Overall, I believe that the RCEP can make China's existing international supply chain more stable and enhance China's ability to withstand risks, which will have positive effects on China's economic development, security, and stability. At the same time, when each member country can fully leverage its own advantages in factors of production, the RCEP will effectively empower the development of intra-Asia trade cooperation. By adjusting the layout of foreign trade and investment and optimizing resource allocation, member countries will strengthen the critical position of East Asia in the global economy. Thank you.   Overall, we believe that through the RCEP, China's existing international supply chain cooperation can be made more stable, enhancing its ability to resist risks and thus having a positive impact on China's economic development, security, and stability. At the same time, the RCEP will effectively empower trade collaboration within the Asian region. Each contracting party can fully leverage its production factor advantages, optimize resource allocation by adjusting foreign trade and investment layouts, and enhance the key position of East Asian economies in the global economy. Thank you. Reporter: "Thank you very much, Dr. Neil. You have just provided a comprehensive and in-depth explanation from a macro perspective. In fact, we are also very interested in the benefits of RCEP for the development of Chinese companies. Could you please discuss 'how can RCEP guide our corporate clients to benefit and explore new opportunities from tariff reduction'?"   Reporter: Thank you very much, Dr. Wang. You have just provided a comprehensive and in-depth interpretation from a macro perspective. In fact, we are also very concerned about the benefits that RCEP can bring to the development of Chinese enterprises. Could you please focus on how 'RCEP guides customer enterprises to benefit from tariff reductions and find new opportunities?'   Neil Wang: The RCEP's 'tariff-free' policy will bring huge development opportunities to Chinese enterprises in various industries.   Dr. Wang Xin: The RCEP 'zero tariffs' will bring tremendous development opportunities to enterprises in various industries across China.   The RCEP 'tariff-free' refers to the eventual achievement of zero tariffs on over 90% of the goods traded in the RCEP region once the agreement comes into effect, with immediate zero tariffs on some goods or zero tariffs for others within ten years. The introduction of this policy means that member countries will liberalize trade in goods in a short period of time. This enables beneficiary enterprises to significantly reduce production and investment costs, expand markets, and improve competitiveness globally.   RCEP 'zero tariffs' mean that after the agreement comes into effect, over 90% of the goods traded within the region will eventually achieve zero tariffs, with some immediately reduced to zero and others within ten years. The implementation of this policy signifies that contracting parties will liberalize trade in goods in a relatively short period, which will help reduce production and investment costs for our enterprises, expand market space, and enhance their international competitiveness.   In terms of imports, 'tariff-free' helps enterprises expand their procurement scale of raw materials, automotive, electronics, and other components at much lower costs, better meeting domestic market demands for consumer upgrading, cost reduction, efficiency improvement, and supply chain optimization.   From an import perspective, 'zero tariffs' help enterprises expand their procurement of raw materials, auto parts, electronic components, and other parts at lower costs, better meeting domestic market needs for consumer upgrading, reducing costs and increasing efficiency for enterprises, and optimizing the supply chain ecosystem.   Regarding exports, the 'tariff-free' policy will significantly reduce product prices, promoting more Chinese products to be marketed internationally and removing many challenges for enterprises in international markets. Especially for products with export advantages, 'zero tariffs' enable Chinese enterprises to enhance their competitiveness in global markets and replace market shares of non-member countries, leading to further export expansion.   From an export perspective, the 'zero tariffs' policy will significantly lower product prices, promote more Chinese products into international markets, and eliminate many challenges for enterprises in international markets. Especially for products with export advantages, 'zero tariffs' will enable Chinese enterprises to enhance their competitiveness in global markets, replace market shares of non-member countries, and further expand exports.   In addition, the RCEP cumulative rules of origin are very beneficial for small and medium-sized enterprise exports. It stipulates that when goods are exported to any RCEP member country, all intermediate goods and accessories from any RCEP country can be included in the value-added percentage of the origin to meet the regional value content requirement of 40%. This makes it easier for businesses to meet RCEP origin requirements, which may enhance the flexibility and autonomy of industry chain layout. Therefore, 'zero tariffs' bring optimization of supply chains, enhancement of market discourse, and expansion of global influence for Chinese enterprises with broader development space.   Furthermore, the RCEP cumulative rules of origin are highly advantageous for small and medium-sized enterprise exports. It stipulates that when goods are exported to any RCEP member country, intermediate goods and accessories from any RCEP country can be incorporated into the value-added percentage of the origin to meet the final export product's value-added requirement of 40%, significantly lowering the threshold for benefiting from these rules and enhancing the flexibility and autonomy of industry chain layout. Therefore, 'zero tariffs' provide a broad development space for Chinese enterprises to optimize their supply chains, enhance their market discourse, and expand their global influence.