Sunday, January 29, 2023
Homechina marketsChina's health-care sector could be Beijing's next regulatory target, analysts say

China’s health-care sector could be Beijing’s next regulatory target, analysts say

  • Chinese President Xi Jinping emphasized this week the need to support moderate wealth for all — or the idea of "common prosperity." That has been behind the spate of crackdowns on companies, say analysts.
  • The healthcare sector is one of the country's "three big mountains," with the other two being education and property.
  • Green of TS Lombard says the firm predicts that the MSCI China index could dive another 10% to 15%, in a worst-case scenario.

A woman sorting medicine in the pharmacy of the Yueyang Hospital, part of the Shanghai University of Traditional Chinese Medicine, in Shanghai.JOHANNES EISELE | AFP | Getty Images

China's health-care sector will probably be the next to fall under scrutiny, analysts warn, as the country's regulators crack down on everything from tech to education to data security.

Chinese President Xi Jinping this week again reiterated the need to support moderate wealth for all — or the idea of "common prosperity" which he has been promoting for months.

That's what's driving the spate of crackdowns on companies, analysts say.

"'Common prosperity' remains an idea that is still in search of an implementation strategy," said Rory Green, China economist at TS Lombard. "For now, it is much easier to regulate industry and capital markets than it is to institute structural reform."

RELATED ARTICLES

Most Popular