Chinese biopharmaceutical stocks saw a significant rise recently. BeiGene (BGNE, Financial), Zai Lab (ZLAB), and HUTCHMED (HCM) each experienced gains of over 5%. This upward trend follows favorable policy announcements from the Chinese government, which have positively impacted the sector.
Analysts from Guosen Securities highlighted the dual drivers of domestic and international demand contributing to the growth of the pharmaceutical sector. The improving macroeconomic conditions both in China and overseas provide a conducive environment for enhanced performance in this industry.
The sector, having weathered challenges like the pandemic, procurement policies, and anti-corruption measures, is expected to enter a new growth cycle by 2025. The concentration within the industry is likely to increase over the coming years, with leading companies demonstrating stronger market advantages.
