China Healthcare "Weekly recap: Deep dives into insomnia treatments and..."

Research evidence excerpt

China Healthcare "Weekly recap: Deep dives into insomnia treatments and..."

Global Research

3 July 2026ab

China Healthcare Equities

ChinaWeekly recap: Deep dives into insomnia

treatments and pharmaceutical retail Healthcare

Chen Chen, PhD

Analyst

chen-zb.chen@ubs.com

A/H-share healthcare sector a strong rebound this week +86-10-5832 8201

From 29 June to 3 July, the HSHCI/HSBIO indices increased 14.2%/15.1%, while the SW Henry Liu, CFA

Healthcare A/H indices moved by +10.5%/+13.0%, both ranking No.1 in terms of Analyst

performance among A/H-share sectors. Among healthcare subsectors, chemicals S1460520110002

outperformed in A-shares (+15.7%) and biologics outperformed in H-shares (+18.7%), henry-za.liu@ubs.com

primarily driven by sector rotation, weaker expectation of Fed rate hike, a strong XBI +86-105-832 8509

performance and innovative biopharma's resilient fundamentals, in our view. Our top Anita Wei

picks: BeOne, WuXi XDC, JD Health and Simcere, among others (see page 3). Analyst

anita.wei@ubs.com

+852-2971 7459

Top stories: Deep dives into insomnia market and pharmaceutical retail Jun Deng

Our APAC Focus report highlights the fast-growing orexin receptor antagonists (ORAs) Analyst

class in China's under-penetrated insomnia market, with share projected to rise from jun.deng@ubs.com

1% in 2025 to 32% by 2035E. Within our coverage, we see Simcere and Hansoh as +852-3712 2103

key beneficiaries. We change our pharma sector top pick to Simcere. We also Michelle Zhu

published an APAC Focus note on China's pharmaceutical retail sector, highlighting that Analyst

online penetration continues to rise despite recent regulatory tightening, as indicated by S1460522090003

a recent UBS Evidence Lab survey. We are bullish on JD Health, Yifeng and Dashenlin, michelle.zhu@ubs.com