Guotai Asset Management points to earnings and policy support
Guotai Asset Management flagged a sharp rally in China’s healthcare complex, led by innovative drug themes, as investors rotated away from chips.
It tied the move to a mid-year earnings preview season, with CXO results holding up; CDMO new orders stayed strong into 2026 Q2.
CRO sentiment improved on a rebound in global biotech financing in 2026 H1; June US biotech funding rose about 200% year-on-year.
Policy signals supported the sector, with bulk procurement expected to free about 500 billion yuan for innovative drug reimbursement; payments seen rising to 1.5-1.6 trillion yuan in 2026.
It cautioned against chasing the rally, citing high intraday negative correlation with tech and downside risk if the tech trade regains momentum.
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