Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
Shares of healthcare companies and drugmakers tumbled on Monday, with the indexes tracking the two sectors compiled by Wind Information slumping by 3.5% and 3.2%, respectively, making them the worst-performing sectors in the A-share market.
ApicHope Pharmaceutical slumped 16.5%, Shanghai Micurx Pharmaceutical down 10.9%, Betta Pharmacuticals down 10.7%, Livzon Pharmaceutical down 10%. In Hong Kong, Sinopharm slumped more than 15%, Livzon Pharma down more than 13%.
Since mid-July, Chinese authorities have repeatedly pledged to step up anti-graft efforts in the healthcare sector. As of July 26, at least 155 heads of hospitals have been placed under investigation this year, exceeding the figure for the full year of 2022, according to statistics by Saibailan, an healthcare industry consultancy.
Tebon Securities believes that the anti-corruption campaign in the sector will bring some uncertainties to the sector in the short term, though it’s a positive factor from a long-term perspectively.
Bocom International said that this round of anti-graft campaign is expected to focus on cracking down on Operational noncompliance and will have limited impact on leading drugmakers and medical equipment makers with strict compliance.
