• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Is This Beloved Herb the Key to Fighting Alzheimer’s Disease?

June 24, 2025

Why the Housing Market Standoff Could Be Your Best Chance to Make a Deal

June 24, 2025

Buy now, pay later loans will now impact Americans’ credit scores

June 23, 2025
Facebook Twitter Instagram
Trending
  • Is This Beloved Herb the Key to Fighting Alzheimer’s Disease?
  • Why the Housing Market Standoff Could Be Your Best Chance to Make a Deal
  • Buy now, pay later loans will now impact Americans’ credit scores
  • How to Set Boundaries with Social Media Spending Influences
  • Compass Claims Zillow Has ‘Monopoly,’ Sues Over ‘Ban’
  • How InMyExpertOpinion Is Battling AI Product Reviews
  • OpenAI’s Jony Ive Deal Removed From Website, Social Media
  • LinkedIn CEO: Our AI Writing Tool Isn’t Very Popular
Tuesday, June 24
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » Chinese healthcare stocks hit by stepped up anti-graft crackdown
Investing

Chinese healthcare stocks hit by stepped up anti-graft crackdown

News RoomBy News RoomAugust 9, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

© Reuters.

SHANGHAI (Reuters) – A year-long slump in China’s healthcare stocks has accelerated this week as an anti-corruption campaign gathers pace, threatening the sales of some drug makers and medical equipment producers.

The CSI Medical Services Index has lost more than 2% this month, taking losses for the year to 19% and heavily underperforming the benchmark CSI300 Index, which has risen 2% in 2023. Healthcare comprises 6.5% of the main index.

Selling in healthcare stocks such as Pharma giant Hengrui and medical equipment company Shenzhen Mindray Bio-Medical Electronics Co picked up over the past week, amid signs China is doubling down on efforts to eradicate rampant graft and bribery in sales practices.

Ten government bodies including the National Health Commission and the Ministry of Public Security kicked off a year-long anti-corruption campaign in the medical system in late July.

It represents a sharp escalation of a medical anti-corruption campaign that started years ago, while the sector had already been under pressure from a bulk-buying programme aimed at lowering drug prices.

“Campaigns against medical corruption have been going on for years … but this round of crackdown is more forceful than previously,” said Zhao Heng, founder of consultancy Latitude Health.

“The crackdown on corruption would have an obvious impact on drug sales, at least in the short term,” he said, adding that pharmaceutical firms with unique or highly competitive products were less vulnerable.

Shares of Apichope Pharma , Allist Pharma, and Olymvax Biopharma have slumped between 20% and 30% since July 28, when China’s top graft buster vowed “shock and awe” in the crackdown.

The companies’ sales expenses were more than half of their revenue for the past two years, raising questions about sales practices.

China has cracked down on other sectors in the past, including tutoring, fintech, and property, wiping out trillions of dollars in the companies’ market value.

“The anti-graft campaign is similar to crackdowns in the finance sector and internet platforms,” said Zhang Kexing, fund manager at Beijing Gelei Asset Management.

“It will dent market sentiment, more or less,” he said. “But in the long run, only by deepening reform can we solve the hidden problems.”

At least 168 hospital chiefs have been investigated on suspicion of violating laws and regulations, double the number in 2022, healthcare information provider Saibailan reported.

At least 10 academic conferences were postponed in August.

The health commission said in May it would target sales activities such as using academic events as a channel to bribe doctors.

Pharma giant Hengrui is down 18% since July 28, losing almost 50 billion yuan ($6.94 billion) in market value in less than two weeks.

Anxious investors have been fielding questions to Hengrui over the impact of the anti-corruption campaign, and the company, whose sales expense is as high as a third of revenue, said it has always been compliant with regulations.

($1 = 7.2077 renminbi)

Read the full article here

Featured
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Is This Beloved Herb the Key to Fighting Alzheimer’s Disease?

Burrow June 24, 2025

Why the Housing Market Standoff Could Be Your Best Chance to Make a Deal

Make Money June 24, 2025

Buy now, pay later loans will now impact Americans’ credit scores

Personal Finance June 23, 2025

How to Set Boundaries with Social Media Spending Influences

Savings June 23, 2025

Compass Claims Zillow Has ‘Monopoly,’ Sues Over ‘Ban’

Make Money June 23, 2025

How InMyExpertOpinion Is Battling AI Product Reviews

Investing June 23, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Why the Housing Market Standoff Could Be Your Best Chance to Make a Deal

June 24, 20250 Views

Buy now, pay later loans will now impact Americans’ credit scores

June 23, 20250 Views

How to Set Boundaries with Social Media Spending Influences

June 23, 20250 Views

Compass Claims Zillow Has ‘Monopoly,’ Sues Over ‘Ban’

June 23, 20250 Views
Don't Miss

How InMyExpertOpinion Is Battling AI Product Reviews

By News RoomJune 23, 2025

Frustrated by AI-generated product reviews flooding platforms and confusing consumers, four former colleagues came together…

OpenAI’s Jony Ive Deal Removed From Website, Social Media

June 23, 2025

LinkedIn CEO: Our AI Writing Tool Isn’t Very Popular

June 23, 2025

What Retirees Need To Know About Social Security’s Funding Deficit

June 23, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.