Healthcare - China (H): New buybacks signal confidence by management; fundamentals remain solid

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Healthcare - China (H): New buybacks signal confidence by management; fundamentals remain solid

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Healthcare - China (H)

New buybacks signal confidence by

management; fundamentals remain solid

Industry Overview

Summary of the share repurchases in May/June 18 June 2026

Since 1 May 2026, despite solid data readouts at ASCO 2026 and solid operating Equity

updates from monthly sales and new license-out deals, the healthcare sector has been China

weighed down by weak market liquidity and geopolitical concerns. The HSHCI has Healthcare

declined by c.16.7% as of 15 Jun since 1 May, significantly underperforming the HSI (- David Li >>

4.1%) (Exhibit 1). Against this backdrop, share repurchases became increasingly visible Research Analyst

across healthcare subsectors, as companies sought to support share prices signaling Merrill+852 3508Lynch4531(Hong Kong)

management confidence. Within pharma, Hengrui executed its repurchase program from davidbo.li@bofa.com

August last year and had cumulatively repurchased RMB772mn worth of A-shares, Ethan Cui >>

Research Analyst

representing 12.1mn shares, as of May. Meanwhile, CSPC and Sino Biopharm Merrill Lynch (Hong Kong)

repurchased HK$153.3mn and HK$130.4mn worth of shares, respectively, representing ethan.cui@bofa.com

21.5mn and 24.2mn shares in May/June. For CRO/CDMO, WuXi Apptec repurchased Sandra Sun >>

RMB300.0mn worth of A-shares and HK$2,384.6mn in H-shares as of 15 Jun, Merrill Lynch (Hong Kong)

representing 3.1mn and 19.26mn shares, respectively. WuXi Bio and Tigermed-A also sandra.sun@bofa.com

conducted repurchases of HK$873.1mn and RMB565.4mn during the period. In

Hospitals, Aier, Gushengtang, Hygeia, Jinxin and Topchoice repurchased

RMB302.8mn/HK$138.9mn/ HK$46.5mn/ HK$119.3mn/ RMB7.8mn in shares. For