HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The assassination of Trump in July has greatly increased the probability of his election as president this year. However, a Trump presidency is not necessarily good for healthcare industry.</li>
<li>Trump's reform in the field of healthcare has two major propositions - One is to achieve the independence of US pharmaceutical supply chain. The other is to reduce drug prices.</li>
<li>From a US national security perspective, China's APIs/CXO would be the segments with the highest sanction risk. China Biotech may also face some headwinds. The risk of "decoupling" further increases.</li>
</ul>


The assassination of Trump in July has greatly increased the probability of his election as president this year. However, a Trump presidency is not necessarily good for healthcare industry.
Trump's reform in the field of healthcare has two major propositions - One is to achieve the independence of US pharmaceutical supply chain. The other is to reduce drug prices.
From a US national security perspective, China's APIs/CXO would be the segments with the highest sanction risk. China Biotech may also face some headwinds. The risk of "decoupling" further increases.


What Does a Trump Presidency Mean for China Healthcare?

Equity Bottom-Up

<ul>
<li>The 9th national VBP is drawing near. As all drugs under national/provincial VBP are scheduled to be executed before 2025/12/31, there should be new policies in 2026 and beyond.</li>
<li>The capabilities of Chinese pharmaceutical companies in ADC field have at least stepped onto a platform to compete with international giants, which is clearly more progressive than during PD-1 era.</li>
<li>We analyzed key points of Ovctek. Its investment logic has changed and centralized procurement will break investors' expectations for Ovctek’s future performance growth. Valuation may continue to be under pressure.</li>
</ul>


The 9th national VBP is drawing near. As all drugs under national/provincial VBP are scheduled to be executed before 2025/12/31, there should be new policies in 2026 and beyond.
The capabilities of Chinese pharmaceutical companies in ADC field have at least stepped onto a platform to compete with international giants, which is clearly more progressive than during PD-1 era.
We analyzed key points of Ovctek. Its investment logic has changed and centralized procurement will break investors' expectations for Ovctek’s future performance growth. Valuation may continue to be under pressure.


China Healthcare Weekly (May.26)- 9th National VBP, China's Strength in ADC Field, Ovctek, Eyebright

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Caixin Global

Articles from Caixin Global

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Cross Asset Strategy

<ul><li>Cover Story: Sichuan power crunch sparks calls for rethink of coal in China’s energy mix</li><li>Suspects arrested as Hong Kong police crack down on cross-border job scam</li><li>Exclusive: Regulator moves to help struggling private developers with bond guarantees</li></ul>

Cover Story: Sichuan power crunch sparks calls for rethink of coal in China’s energy mixSuspects arrested as Hong Kong police crack down on cross-border job scamExclusive: Regulator moves to help struggling private developers with bond guarantees

CX Daily: Sichuan Power Crunch Sparks Calls for Rethink of Coal in China’s Energy Mix

<ul>
<li>The energy/food crisis and the volatility of exchange rates due to Russia-Ukraine war will increase the cost of Chinese enterprises producing API, leading to API price hike expectation.</li>
<li>Inadequate API production in Europe would create huge demand, offering a good opportunity for Chinese API companies to achieve innovation, transformation, upgrading, and help international companies to realize capacity transfer.</li>
<li>The Indo-Pacific Economic Framework (IPEF)/Blinken’s speech/complex Sino-US relationship could weigh on bullish sentiment. The point is if you violate the laws of economics, it will bite you back.</li>
</ul>


The energy/food crisis and the volatility of exchange rates due to Russia-Ukraine war will increase the cost of Chinese enterprises producing API, leading to API price hike expectation.
Inadequate API production in Europe would create huge demand, offering a good opportunity for Chinese API companies to achieve innovation, transformation, upgrading, and help international companies to realize capacity transfer.
The Indo-Pacific Economic Framework (IPEF)/Blinken’s speech/complex Sino-US relationship could weigh on bullish sentiment. The point is if you violate the laws of economics, it will bite you back.


Geopolitical Conflicts and War: The Impact on China API Industry

<ul><li>In Depth: China’s tightening of online insurance sales starts to bite</li><li>Chinese regions offer rewards for tip-offs on trafficked women and children</li><li>Deutsche Bank joins global peers with link to Beijing Stock Exchange</li></ul>

In Depth: China’s tightening of online insurance sales starts to biteChinese regions offer rewards for tip-offs on trafficked women and childrenDeutsche Bank joins global peers with link to Beijing Stock Exchange

CX Daily: China’s Tightening of Online Insurance Sales Starts to Bite

China

Zhejiang Huahai Pharmaceutical Co., Ltd. manufactures and retails pharmaceutical products and medical raw materials. The Company exports its products to many parts of the world.

Zhejiang Huahai Pharmaceutical Co, Ltd. (600521 CH)

Price Gauge
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Zhejiang Huahai Pharmaceutical Co, Ltd. (600521 CH)

What Does a Trump Presidency Mean for China Healthcare?

Trump successfully elected as the US President. His reform in healthcare is to achieve the independence of US pharmaceutical supply chain and...

Xinyao (Criss) Wang

China Healthcare Weekly (May.26)- 9th National VBP, China's Strength in ADC Field, Ovctek, Eyebright

The 9th national VBP is coming, but policy could change from 2026.We see positive factors in the performance of Chinese company in ADC field, who...

Xinyao (Criss) Wang

CX Daily: Sichuan Power Crunch Sparks Calls for Rethink of Coal in China’s Energy Mix

Cover Story: Sichuan power crunch sparks calls for rethink of coal in China’s energy mix. Suspects arrested as Hong Kong police crack down on cross...

Caixin Global

Geopolitical Conflicts and War: The Impact on China API Industry

Energy/food crisis due to war will increase API cost, creating opportunity for China API. For IPEF/Blinken’s speech, politics is always a tool to...

Xinyao (Criss) Wang

CX Daily: China’s Tightening of Online Insurance Sales Starts to Bite

In Depth: China’s tightening of online insurance sales starts to bite. Chinese regions offer rewards for tip-offs on trafficked women and children

Caixin Global

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)