China Healthcare: Riding the Rebound, Low Market Correlation Story

研报英文原文证据摘录

China Healthcare: Riding the Rebound, Low Market Correlation Story

J P M O R G A N Asia Pacific Equity Research

03 July 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the

territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

China Healthcare

Riding the Rebound, Low Market Correlation Story

China healthcare has been bouncing back recently, and we think the move has legs. Healthcare

ACIn the past 2 weeks, the Hang Seng Healthcare Index jumped 9% compared to HSI Yang Huang

that declined by 4%, signaling some investors could start buying healthcare. (852) 2800 3812

Onshore market has echoed the move, with the CSI300 Healthcare Index up 7% yang.huang@jpmorgan.com

in the same period. That was tracking the US biotech XBI index that gained 7% (Fig J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

1). With this rebound, we want to re-emphasize healthcare's low correlation to

Derek Choi

other sectors as a source of value and we see China healthcare's valuation as (852) 2800-8744

undemanding with sector PE near 5-year low (Fig 2) after stock decline in 1H26. derek.c.choi@jpmorgan.com

We think 2Q26/1H26 results should hold up, despite worries over domestic curbs J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

on medical-rep activities. Our channel feedback shows limited overall impact so

far especially for innovative drug sales. Our core sector thesis has stayed Eric Zhao, CFA

(86-21) 6106 6256

unchanged for 2026: China healthcare's fundamentals remain strong and we eric.zhao@jpmorgan.com