Health care stocks gained 3.6% mid-week, the most among the 10 industry groups on the CSI 300 Index. Harbin Pharmaceutical Group led the advance with a 9% gain. Guangzhou Pharmaceutical added 3.6% and Tianjin Tasly Pharmaceutical rose 3.3% last week.
Shanghai brokerage analysts reiterated that small and medium cap stocks of pharma companies were the best insurance. Taking the long-term view, medical stocks in China do have the advantage of being insulated from economic cycles and government policy tightening.
Gulf News.com reports that it has full government backing, which is now in the midst of sweeping health care reforms. China has plans to spend around $125 billion to develop the health care system over a three-year period.