Greater China healthcare keeps 'overweight' rating as R&D, biotech drive expansion

Outlook still positive despite trade and regulatory risks.

Greater China’s healthcare sector maintains an overweight rating, driven by research and development (R&D) excellence and a robust biotechnology landscape, a UOB Kay Hian report said.

Global investors are increasingly optimistic, specifically recognising the advanced pipelines and swift market-execution capabilities of leading Chinese companies.

Sector growth is supported by a rising number of innovative product launches, robust earnings, and aggressive globalisation throughout-licensing deals.

Supportive domestic policies and a lower cost of capital serve as additional key catalysts.

However, the report notes several risks, ranging from US–China trade tensions and regulatory shifts to operational uncertainties in R&D, market launches, and overseas business collaborations.