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Chinese Telemedicine Stocks Feel the Pain as Tougher Rules Loom

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Companies with telemedicine platforms have benefited from pandemic-driven demand for online medical advice. But in China, increased scrutiny and looming changes are hurting the sector’s stocks.

on numerous industries has also dragged down the sector’s stocks.

In late October, the National Health Commission, the country’s health authority, released new draft rules for the telemedicine industry that mapped out minimum professional qualifications for doctors that provide medical consultations online. They also said artificial-intelligence technologies shouldn’t be used in place of actual doctors to diagnose conditions.

The rules said internet healthcare platforms shouldn’t offer initial or remote medical consultations for conditions other than common or chronic diseases, and that they needed to check patients’ drug prescription records from bricks-and-mortar hospitals before dispensing medicines online. The tighter rules for the telemedicine platforms could slow the sector’s expansion. Several brokerage analysts recently cut their stock-price targets for the listed online healthcare companies, saying they expect a growth slowdown in sales of online prescription drugs.

 

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Well that is just a goddamn shame

And get ready to invade Taiwan

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