China’s anti-corruption campaign wiped out 67.5 bn yuan market value in pharmaceutical sector in past two weeks
MARKET POLICY & REGULATION STOCKS
China’s anti-corruption campaign wiped out 67.5 bn yuan market value in pharmaceutical sector in past two weeks
MARKET POLICY & REGULATION STOCKS

China’s anti-corruption campaign wiped out 67.5 bn yuan market value in pharmaceutical sector in past two weeks

 

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China’s anti-corruption campaign in its healthcare system has roiled the pharmaceutical sector, wiping out 67.5 billion yuan ($9.4 billion) in market value over the past two weeks.

The CSI 300 healthcare index, which tracks the country’s biggest makers of medicine and medical equipment including Jiangsu Hengrui Pharmaceutical and Shenzhen Mindray Bio-Medical Electronics, has dropped nearly 5% over the past fortnight, while the benchmark CSI 300 Index hardly moved in the period.

The sell-off intensified this week after a slew of headlines on busting industry corruption caught the attention of traders. More than 150 bosses and party secretaries of Chinese hospitals have been placed under investigation this year, doubling the previous year’s number, according to local media.

Investors including Huichen Asset Management said this would immediately hit sales, with medical companies postponing deliveries to hospitals amid increased scrutiny.