0312 GMT - China's biopharma sector is likely to receive increased government support as a designated 'emerging pillar industry,' UOB Kay Hian analyst Carol Dou says in a note. However, she notes that the recent weak performance of the Hang Seng Healthcare Index has been driven by a new U.S. investigation into China's biotech sector and rising geopolitical tensions in the Middle East, which have triggered risk aversion. UOB KH maintains an overweight rating on the sector but flags rising geopolitical risks that could disrupt supply chains and increase market volatility. The brokerage still favors drug innovators with robust pipelines and strong earnings growth potential, as well as internet healthcare players with advanced AI algorithms. Its top sector picks are Innovent, Hansoh Pharma, WuXi AppTec, WuXi Bio and Ali Health.(jason.chau@wsj.com)
(END) Dow Jones Newswires
March 17, 2026 23:12 ET (03:12 GMT)
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