The Zhitong Finance App learned that Lyon released a research report saying that the recent pullback in China's healthcare sector was mainly driven by macroeconomic concerns, and related factors were generally reflected in stock prices; overseas progress and mainland operations continued to improve, and the macro environment had stabilized. The bank viewed the recent pullback as a buying opportunity.
The bank pointed out that sample hospital data showed that drug sales improved month by month from July to September, and that momentum was stronger month-on-month in September, or that companies and doctors are gradually adapting to the new compliance requirements. It is expected that profits for the third quarter will improve, and the upcoming performance period can be a short-term catalyst. The importance of the out-of-hospital and self-funded markets is rising. With the launch of more innovative drugs and demographic trends, the bank believes that the mainland market will eventually become a growth engine again.
At ESMO 2026, China's assets accounted for 29 of 96 LBAs and 5 of the 12 Presidential Symposiums. Key developments include positive results of TROP2 ADC SAC-TMT of Colombotai Biotech (06990) in first-line non-squamous non-small cell lung cancer and endometrial cancer stage III; Kangfang Biotech (09926)'s AK112 versus valdurumab was successful in first-line biliary tract cancer stage III; successful reading of stage III stage III of CLDN18.2 ADC IBI343 in late stage gastric cancer of Cinda Biotech (01801); successful reading of GFH276 first stage I data from Jingfang Pharmaceutical-B (02595) Weilizhibo-B ( 09887) LBL-024 registration clinical data, etc.
From December 4 to 6, ESMO Asia is expected to have further data readings, including SYS6010 of CSPC Group (01093). Legislation relating to the licensing of innovative drugs in China and the US has largely settled. The impact on normal external licensing (license-out) transactions is limited, eliminating a major uncertainty about overseas expansion.
The bank kept China's healthcare stock basket unchanged, indicating that healthcare accounts for less than 2% of the fund's total holdings, and valuation discounts provide more attractive long-term buying opportunities; further overseas clinical progress and new Phase III asset BD transactions should also support the sector.