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Chinese healthcare stocks hit by stepped up anti-graft crackdown

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SHANGHAI : A year-long slump in China's healthcare stocks has accelerated this week as an anti-corruption campaign gathers pace, threatening the sales of some drug makers and medical equipment producers.The CSI Medical Services Index has lost more than 2 per cent this month, taking losses for the year to

SHANGHAI : A year-long slump in China's healthcare stocks has accelerated this week as an anti-corruption campaign gathers pace, threatening the sales of some drug makers and medical equipment producers.

Ten government bodies including the National Health Commission and the Ministry of Public Security kicked off a year-long anti-corruption campaign in the medical system in late July. "The crackdown on corruption would have an obvious impact on drug sales, at least in the short term," he said, adding that pharmaceutical firms with unique or highly competitive products were less vulnerable.

China has cracked down on other sectors in the past, including tutoring, fintech, and property, wiping out trillions of dollars in the companies' market value.

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