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<Research>CMBI Expects LT Continuation of Innovative Drug Export Trend, Rates SINO BIOPHARM/ WUXI XDC/ Others at Buy
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The MSCI China Health Care Index has risen by 11.8% YTD, outperforming the MSCI China Index's 9.1%, according to CMBI's research report.

The significant increase in the pharmaceutical industry is mainly due to the valuation in 4Q25, which was absorbed by industry correction, and stronger allocation intentions by institutional investors at the beginning of the year.

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Looking ahead to 2026, the trend of innovative drug exports is expected to continue in the long term, with a focus on clinical progress and data realization of overseas pipelines as key catalysts.

CMBI rated 3SBIO (01530.HK), GUSHENGTANG (02273.HK), WUXI XDC (02268.HK) and SINO BIOPHARM (01177.HK) at Buy. The latest ratings and target prices of the sector are listed in a separate table.
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