China healthcare to thrive in 2024 as anti-corruption campaign eases

It will lead to a return to normalcy in hospital diagnosis and treatment activities. 

With the anti-corruption campaign expected to ease in the fourth quarter of 2023, hospital activities are expected to return to normal, said UOB Kay Hian.

In a report, the brokerage firm said the campaign is expected to promote a healthier business environment and improve the industry's operating efficiency in the long term.

The COVID-19 pandemic and the anti-corruption campaign in early 2023 created a low growth base for the first quarter of 2024. It is expected to contribute to stronger revenue and earnings growth in 2024.

Meanwhile, the potential interest rate cuts in the US will provide liquidity and back the recovery of the biotech and CRO/CDMO segments, which were hit by a weak global biotech funding environment.

Chinese biopharmaceutical firms have invested significantly in R&D efforts, leading to an expected fruitful year of innovation in 2024.