HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>The National Healthcare Security Administration recently released a document about the intensive procurement of high-value orthopedic consumables, so finally it is approaching.</li>
<li>The market of orthopedic implant consumables is still dominated by imported enterprises, and domestic enterprises have a certain gap in market competitiveness compared with foreign giants.</li>
<li>As the market size of China's oncology treatment industry grows, the proportion of targeted drugs and immunotherapy drugs are expected to increase in the future, and private oncology hospitals could get more development opportunities.</li>
</ul>2. Company news: News about the new equity agreement, strategic cooperation and progress of new drug from <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/jhbp-cy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29201:1" rel="noopener">JHBP (Genor) (6998 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 0.83%, while CSI 300 decreased 2.71% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
The National Healthcare Security Administration recently released a document about the intensive procurement of high-value orthopedic consumables, so finally it is approaching.
The market of orthopedic implant consumables is still dominated by imported enterprises, and domestic enterprises have a certain gap in market competitiveness compared with foreign giants.
As the market size of China's oncology treatment industry grows, the proportion of targeted drugs and immunotherapy drugs are expected to increase in the future, and private oncology hospitals could get more development opportunities.
2. Company news: News about the new equity agreement, strategic cooperation and progress of new drug from Wuxi Biologics (2269 HK), BeiGene Ltd (6160 HK) and JHBP (Genor) (6998 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 0.83%, while CSI 300 decreased 2.71% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:<ul>
<li>Last week, the bidding for the 4th volume-based purchase (VBP) was officially opened.</li>
<li>China's CTLA-4 antibody drug industry is in the early stage, but is expected to expand rapidly from 2021. </li>
<li>China's orthopedic implant device market is in a stage of rapid growth in recent years. However, the future large price reduction if included in the volume-based purchase should also be take into consideration.</li>
</ul>2. Company news:News about the progress of new drugs, COVID-19 vaccine, strategic collaboration and acquisition from <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 HK)</a> and <a href="https://www.smartkarma.com/entities/china-medical-system-holdings" target="_blank" data-smartkarma-citation="entities:18736:1" rel="noopener">China Medical System (867 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share increased 3.75%, while CSI 300 increased 2.46% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
Last week, the bidding for the 4th volume-based purchase (VBP) was officially opened.
China's CTLA-4 antibody drug industry is in the early stage, but is expected to expand rapidly from 2021. 
China's orthopedic implant device market is in a stage of rapid growth in recent years. However, the future large price reduction if included in the volume-based purchase should also be take into consideration.
2. Company news:News about the progress of new drugs, COVID-19 vaccine, strategic collaboration and acquisition from Innovent Biologics Inc (1801 HK), Antengene (6996 HK), CanSino Biologics Inc (6185 HK) and China Medical System (867 HK).3. Market review:Last week, stock price for healthcare sector in A share increased 3.75%, while CSI 300 increased 2.46% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

Alibaba Health Information Tec / Equity Bottom-Up

This Insight summarizes the takeaways from a recent China healthcare industry conference focused on biopharmaceuticals and medical devices, and builds on our Originals Insight <a href="https://www.smartkarma.com/insights/asian-healthcare-coming-of-age" target="_blank" data-smartkarma-citation="insights:45676" rel="noopener">Asian Healthcare - Coming of Age</a>.  Topics addressed include value-based purchasing for drugs and devices; development of commercial health insurance; internet hospitals and online pharmacies; DRGs for hospitals; issues for medical device companies; and amendments to China's patent laws.

This Insight summarizes the takeaways from a recent China healthcare industry conference focused on biopharmaceuticals and medical devices, and builds on our Originals Insight Asian Healthcare - Coming of Age.  Topics addressed include value-based purchasing for drugs and devices; development of commercial health insurance; internet hospitals and online pharmacies; DRGs for hospitals; issues for medical device companies; and amendments to China's patent laws.

1. Industry viewpoints:<ul>
<li>A related news has been released this week that in 2021, China’s new intensive procurement policy would be applied to orthopedic implant consumables.</li>
<li>With the growth of China's pharmaceutical market, more and more innovative companies focusing on gene therapy are emerging in China, bringing market opportunities for CDMO on gene therapy.</li>
<li>As a financial tool, Commercial insurance will become a key part of pharmaceutical enterprises' marketing to support and maintain patient relationship in the future.</li>
</ul>2. Company news:News about the progress of new drugs and COVID-19 vaccine from Hengrui, Innovent Biologics and Fosun Pharma.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.92%, while CSI 300 increased 0.76% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
A related news has been released this week that in 2021, China’s new intensive procurement policy would be applied to orthopedic implant consumables.
With the growth of China's pharmaceutical market, more and more innovative companies focusing on gene therapy are emerging in China, bringing market opportunities for CDMO on gene therapy.
As a financial tool, Commercial insurance will become a key part of pharmaceutical enterprises' marketing to support and maintain patient relationship in the future.
2. Company news:News about the progress of new drugs and COVID-19 vaccine from Hengrui, Innovent Biologics and Fosun Pharma.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.92%, while CSI 300 increased 0.76% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Alibaba Health Information Tec / Event-Driven

In <a href="https://skr.ma/rHAUM" target="_blank" rel="noopener">Hong Kong Short Interest: From the Wuhan Lockdown, The Market Low, Until Now</a> at end May, I thought it would be a useful exercise to see how shorts behaved in 2020, using specific notable points in time as reference points (at the time of the lockdown in Wuhan (23 Jan), the low of stock markets in late March) against where we were then.
In something of a companion piece, this insight looks at the holdings via the Shanghai &amp; Shenzhen Connect into Hong Kong stocks (i.e. southbound holdings) at these moments in time.
I've broken down these holdings into various industries, both in HK$ terms and as a % of the accumulated market caps of the companies into which the Shanghai/Shenzhen holdings are held.
And finally, I've looked into the top price to book companies via these connect holdings to gauge if any meaningful pattern emerges.
Information for this insight is all sourced from the HKEx disclosure page. There are, by last count, <a href="http://www.sse.com.cn/services/hkexsc/disclo/eligible/" target="_blank" rel="noopener">318</a> Hong Kong-listed companies under the Shanghai Connect and, and <a href="http://www.szse.cn/szhk/hkbussiness/underlylist/" target="_blank" rel="noopener">477</a> under Shenzhen; although every HK-listed company under the Shanghai connect can also be found in the Shenzhen eligible list. 
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As always, more below the fold.
</div>

In Hong Kong Short Interest: From the Wuhan Lockdown, The Market Low, Until Now at end May, I thought it would be a useful exercise to see how shorts behaved in 2020, using specific notable points in time as reference points (at the time of the lockdown in Wuhan (23 Jan), the low of stock markets in late March) against where we were then.
In something of a companion piece, this insight looks at the holdings via the Shanghai &amp; Shenzhen Connect into Hong Kong stocks (i.e. southbound holdings) at these moments in time.
I've broken down these holdings into various industries, both in HK$ terms and as a % of the accumulated market caps of the companies into which the Shanghai/Shenzhen holdings are held.
And finally, I've looked into the top price to book companies via these connect holdings to gauge if any meaningful pattern emerges.
Information for this insight is all sourced from the HKEx disclosure page. There are, by last count, 318 Hong Kong-listed companies under the Shanghai Connect and, and 477 under Shenzhen; although every HK-listed company under the Shanghai connect can also be found in the Shenzhen eligible list. 

As always, more below the fold.


Shanghai/Shenzhen Connect: Holdings From the Wuhan Lockdown, The Market Low, Until Now

China

AK Medical Holdings Limited manufactures medical devices. The Company produces and sells orthopedic implants, spinal interbody cages, artificial vertebral bodies, and other products. AK Medical Holdings markets its products throughout Hong Kong.

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AK Medical Holdings Limited (1789 HK)

China Healthcare Weekly (Mar.19)

The article analyzed intensive procurement of high-value orthopedic consumables & its market pattern, trend of China's oncology treatment...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.5)

This article analyzed the results of the 4th volume-based purchase, the CTLA-4 antibody drug industry, the orthopedic implant device market, news...

Xinyao (Criss) Wang

China Healthcare: Macro Themes

This Insight summarizes the takeaways from a recent China healthcare industry conference. There is much talk of pressures on the industry, but...

Kemp Dolliver, CFA

China Healthcare Weekly (Nov.27)

This article summarized the new healthcare policy released in China last week, major industry viewpoints, company news and capital market review of...

Xinyao (Criss) Wang

Shanghai/Shenzhen Connect: Holdings From the Wuhan Lockdown, The Market Low, Until Now

In Hong Kong Short Interest: From the Wuhan Lockdown, The Market Low, Until Now at end May, I thought it would be a useful exercise to see how...

David Blennerhassett

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