China's Healthcare Seen Weighed by Potential Higher Fed Rates, Inflation Pressures -- Market Talk

Dow Jones03-25 14:41

0641 GMT - HSBC Global Research sees Chinese healthcare companies under its coverage facing limited impact from the Mideast crisis. Companies under coverage derive less than 2%-5% of revenue from the region, and their supply-chain exposure there is also limited, HSBC analysts say in a note. Instead, potentially higher Fed rates, inflationary pressure, and elevated market volatility are likely to weigh on sector sentiment and funding conditions, particularly for biotech and contract research organizations, HSBC says. The bank expects resilient demand and cash flow across the sector, supported by stimulus safeguarding local supply chains and acceleration of import substitution, to partially offset prolonged volatility risks. (jason.chau@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 02:41 ET (06:41 GMT)

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