• Guotai Asset Management flagged a sharp rally in China’s healthcare complex, led by innovative drug themes, as investors rotated away from chips.
• It tied the move to a mid-year earnings preview season, with CXO results holding up; CDMO new orders stayed strong into 2026 Q2.
• CRO sentiment improved on a rebound in global biotech financing in 2026 H1; June US biotech funding rose about 200% year-on-year.
• Policy signals supported the sector, with bulk procurement expected to free about 500 billion yuan for innovative drug reimbursement; payments seen rising to 1.5-1.6 trillion yuan in 2026.
• It cautioned against chasing the rally, citing high intraday negative correlation with tech and downside risk if the tech trade regains momentum.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Guotai Asset Management Co. Ltd. published the original content used to generate this news brief on July 15, 2026, and is solely responsible for the information contained therein.