CMB International Foresees Accelerated Fundamental Improvement in China's Healthcare Sector, Recommends Buying Innovent Bio, 3SBIO, and Others

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According to a research report from CMB International, the MSCI China Healthcare Index has risen 0.6% since the beginning of 2026, outperforming the MSCI China Index by 3.5 percentage points. The healthcare sector has recently experienced a significant correction, particularly in the innovative drug segment. However, following the recent government work report's designation of biopharmaceuticals as an emerging pillar industry, risk appetite in the sector has shown moderate recovery. The institution believes this elevation in policy positioning signifies the healthcare industry's transition from a "strategic emerging industry" to an "emerging pillar industry," indicating that policy benefits will continue to be released across the entire value chain. Concurrently, breakthroughs in AI-driven drug development technology and the surge in overseas business development by Chinese innovative drug companies are creating dual positive momentum. CMB International anticipates an acceleration in the sector's fundamental improvement. The report recommends buying Innovent Bio (01801), 3SBIO (01530), Jacobio-B (01167), Gushengtang (02273), and Wuxi XDC (02268), with target prices of HK$110.62, HK$37.43, HK$10.34, HK$44.95, and HK$88, respectively.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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