Has the Chinese Healthcare Sector valuation changed over the past few years?

Investors are optimistic on the Chinese Healthcare industry, and appear confident in long term growth rates. The industry is trading at a PE ratio of 43.1x which is higher than its 3-year average PE of 38.0x. The industry is trading close to its 3-year average PS ratio of 2.7x.

Which industries have driven the changes within the Chinese Healthcare sector?

Investors are most optimistic about the Pharma industry, which is trading close to its 3-year average PE ratio of 37.3x. Analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings decline of 1.6% per year.

Chinese (SSE) Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 16 Jul 2026	CN¥6.1t	CN¥2.3t	CN¥136.4b	40.4x	44.6x	2.6x
Sat, 13 Jun 2026	CN¥5.5t	CN¥2.3t	CN¥136.4b	36.8x	40x	2.4x
Mon, 11 May 2026	CN¥6.2t	CN¥2.3t	CN¥135.5b	42.6x	46.1x	2.7x
Wed, 08 Apr 2026	CN¥6.3t	CN¥2.3t	CN¥148.8b	38.3x	42.3x	2.7x
Fri, 06 Mar 2026	CN¥6.1t	CN¥2.3t	CN¥148.0b	38.6x	41.3x	2.7x
Sun, 01 Feb 2026	CN¥6.4t	CN¥2.3t	CN¥145.3b	40.7x	44.3x	2.8x
Tue, 30 Dec 2025	CN¥6.3t	CN¥2.3t	CN¥145.1b	38.6x	43.7x	2.8x
Thu, 27 Nov 2025	CN¥6.6t	CN¥2.3t	CN¥145.1b	39.5x	45.3x	2.9x
Sat, 25 Oct 2025	CN¥6.6t	CN¥2.3t	CN¥146.7b	40.1x	45.3x	2.9x
Mon, 22 Sep 2025	CN¥6.9t	CN¥2.2t	CN¥142.4b	40x	48.2x	3.1x
Wed, 20 Aug 2025	CN¥6.9t	CN¥2.2t	CN¥152.5b	41.7x	45.3x	3.1x
Fri, 18 Jul 2025	CN¥6.4t	CN¥2.2t	CN¥150.0b	37.3x	42.5x	2.9x
Sun, 15 Jun 2025	CN¥6.1t	CN¥2.2t	CN¥150.0b	35.5x	40.6x	2.8x
Tue, 13 May 2025	CN¥5.6t	CN¥2.2t	CN¥149.7b	33.9x	37.5x	2.6x
Thu, 10 Apr 2025	CN¥5.4t	CN¥2.2t	CN¥158.8b	30.1x	34x	2.4x
Sat, 08 Mar 2025	CN¥5.7t	CN¥2.2t	CN¥153.8b	32.6x	37x	2.5x
Mon, 03 Feb 2025	CN¥5.4t	CN¥2.2t	CN¥153.8b	30.9x	34.9x	2.4x
Wed, 01 Jan 2025	CN¥5.6t	CN¥2.2t	CN¥153.7b	31.6x	36.2x	2.5x
Fri, 29 Nov 2024	CN¥5.8t	CN¥2.2t	CN¥154.1b	33.6x	37.9x	2.6x
Sun, 27 Oct 2024	CN¥5.9t	CN¥2.2t	CN¥158.4b	32.3x	37.3x	2.6x
Tue, 24 Sep 2024	CN¥4.7t	CN¥2.2t	CN¥161.8b	26.4x	29.2x	2.1x
Thu, 22 Aug 2024	CN¥5.0t	CN¥2.3t	CN¥165.6b	27x	29.9x	2.2x
Sat, 20 Jul 2024	CN¥5.2t	CN¥2.3t	CN¥166.9b	28.5x	31.2x	2.3x
Mon, 17 Jun 2024	CN¥5.5t	CN¥2.3t	CN¥164.9b	29.7x	33.2x	2.4x
Wed, 15 May 2024	CN¥6.1t	CN¥2.3t	CN¥167.6b	32.3x	36.3x	2.7x
Fri, 12 Apr 2024	CN¥5.7t	CN¥2.3t	CN¥173.1b	29.6x	32.6x	2.5x
Sun, 10 Mar 2024	CN¥5.8t	CN¥2.3t	CN¥178.9b	29.6x	32.3x	2.5x
Tue, 06 Feb 2024	CN¥5.1t	CN¥2.3t	CN¥179.8b	24.4x	28.1x	2.2x
Thu, 04 Jan 2024	CN¥6.5t	CN¥2.3t	CN¥176.8b	34.9x	36.8x	2.8x
Sat, 02 Dec 2023	CN¥6.8t	CN¥2.3t	CN¥177.2b	37.5x	38.1x	3x
Mon, 30 Oct 2023	CN¥6.4t	CN¥2.3t	CN¥184.4b	33.1x	34.7x	2.8x
Wed, 27 Sep 2023	CN¥6.4t	CN¥2.3t	CN¥185.3b	32.1x	34.3x	2.8x
Fri, 25 Aug 2023	CN¥6.1t	CN¥2.3t	CN¥192.5b	30.6x	31.5x	2.7x
Sun, 23 Jul 2023	CN¥6.5t	CN¥2.3t	CN¥193.0b	33.4x	33.6x	2.9x


CN Market	-1.53%
Healthcare	8.59%
Life Sciences	16.53%
Pharma	9.21%
Biotech	8.14%
Healthcare Services	7.17%
Medical Equipment	3.68%
Healthtech	0.22%

Company	Last Price	7D	1Y	Valuation
603259 WuXi AppTec	CN¥131.50	14.0% +CN¥47.3b	66.9%	PE20.5x
600276 Jiangsu Hengrui PharmaceuticalsLtd	CN¥57.50	6.5% +CN¥23.1b	0.5%	PE46.9x
300759 Pharmaron Beijing	CN¥40.30	33.0% +CN¥18.4b	55.4%	PE43.7x
002821 Asymchem Laboratories (Tianjin)	CN¥195.75	30.9% +CN¥16.6b	103.9%	PE63.4x
688506 Sichuan Biokin PharmaceuticalLtd	CN¥333.58	9.7% +CN¥12.2b	13.5%	PS54.1x

Announcement • Jun 30

Hengrui Pharma Receives Approval For Heng Yi Cyclosporine Ophthalmic Solution For Dry Eye Disease In China

Hengrui Pharma and Novaliq GmbH announced that on June 23, 2026, the China National Medical Products Administration (NMPA) has approved Heng Yi (0.1% cyclosporine ophthalmic solution) for the treatment of patients with dry eye disease, aiming to increase tear secretion in patients with reduced tear production and improve the sign of the disease. Heng Yi is the first and only water-free 0.1% cyclosporine ophthalmic solution and the second dry eye disease drug product approved in China based on the EyeSol platform technology, following the approval of Heng Qin (perfluorohexyloctane ophthalmic solution) in 2025. Heng Yi combines the proven anti-inflammatory drug cyclosporine with the vehicle perfluorobutylpentane, a semifluorinated alkane (SFA) designed to overcome the drug’s usual limitations. The spreading properties of the water-free vehicle reduce friction and thereby contribute to the efficacy. The approval in China is based on a randomized, double-blind, vehicle-controlled Phase III clinical trial (Study SHR8028-301) led by the team of Professor Hong Jing at Peking University Third Hospital. Results showed that Heng Yi significantly improved total corneal fluorescein staining (tCFS) score as early as Day 15 (treatment group: -4.0 vs control group: -2.8, P=0.008). At Day 29, treatment with Heng Yi significantly reduced tCFS score (treatment group: -4.8 vs control group: -3.0, P<0.0001). The product demonstrated a favorable safety and tolerability profile. This novel cyclosporine ophthalmic solution (development name CyclASol) was approved by the U.S. Food and Drug Administration (FDA) and launched in the United States in 2023 as the world's first cyclosporine ophthalmic solution indicated for the treatment of signs and symptoms of dry eye disease. In Europe, the product was reviewed by the European Medicines Agency (EMA) and centrally approved in the European Union in September 2024 for the treatment of adults with moderate to severe dry eye disease. The SHR8028-301 clinical trial is a multicenter, randomized, double-blind, vehicle-controlled Phase III trial (NCT05841043) conducted by Hengrui Pharma in China, designed to evaluate the efficacy and safety of 0.1% cyclosporine ophthalmic solution (development code: SHR8028) in adult patients with moderate-to-severe DED. A total of 206 subjects were enrolled and randomized in a 1:1 ratio to receive either SHR8028 or vehicle twice daily. The primary endpoints were improvements in tCFS score and eye dryness VAS score in dry eye patients at Day 29 with SHR8028 compared with vehicle. SHR8028-301 is a bridging study in China of the ESSENCE-2 clinical trial. The ESSENCE-2 (NCT04043179) clinical trial is a multicenter, randomized, double-blind, vehicle-controlled Phase III trial sponsored by Novaliq, conducted in the US across multiple regions, designed to evaluate the efficacy and safety of 0.1% cyclosporine ophthalmic solution (development name: CyclASol, SHR8028 in China) in adult patients with moderate-to-severe DED. ESSENCE-2 enrolled 834 subjects, who were randomized in a 1:1 ratio to receive either 0.1% cyclosporine ophthalmic solution or vehicle twice daily. The primary endpoints were improvements in tCFS score and eye dryness VAS score in dry eye patients at Day 29 (Week 4) with CyclASol compared to vehicle. ESSENCE-2 met its primary sign endpoint. The effect on tCFS score was observed as early as Day 15 (treatment group: -3.5 vs control group: -3.0, P=0.002). Importantly, 71.6% of patients responded within four weeks with a clinically meaningful improvement of =3 grades in total corneal staining. The ESSENCE-2 OLE clinical trial is a multicenter, open-label, single-arm trial (NCT04180109) initiated by Novaliq, designed to evaluate the long-term efficacy, safety, and tolerability of CyclASol in adult patients with DED. The study enrolled 202 subjects who had completed treatment in the ESSENCE-2 clinical trial. All subjects received CyclASol twice daily for 12 months. The primary endpoints were to assess the safety of CyclASol during long-term administration and to observe the long-term improvements in corneal and conjunctival staining scores and dry eye symptom scores in patients with DED. In the study, over 80% of patients achieved a significant improvement of =3 points in tCFS score after 4 weeks in the study which was maintained over the 12 months study period, making it well-suited for long-term management of DED as a chronic disease. Together with Heng Qin (perfluorohexyloctane ophthalmic solution), having an anti-evaporative mode-of-action, Hengrui Pharma is uniquely positioned to offer an innovative and comprehensive treatment portfolio for patients across the most common disease root causes of dry eye disease in China.

Chinese (SSE) Healthcare Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Investor sentiment deteriorates as stock falls 15%

Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited Provides Earnings Guidance for the Six Months Ended 30 June 2026

Investor sentiment improves as stock rises 16%

Now 23% overvalued after recent price rise

New minor risk - Share price stability

603259: Share Buybacks And Integrated Development Execution Will Support Future Upside

New minor risk - Share price stability

Investor sentiment deteriorates as stock falls 20%

002422: Buyback Completion And Updated Assumptions Will Guide Future Returns

Pharmaron Beijing Co., Ltd. to Report First Half, 2026 Results on Aug 21, 2026

Wedge Industrial Co.,Ltd. to Report First Half, 2026 Results on Aug 21, 2026

Wanbangde Pharmaceutical Holding Group Co., Ltd. to Report First Half, 2026 Results on Aug 27, 2026

Hengrui Pharma Receives Approval For Heng Yi Cyclosporine Ophthalmic Solution For Dry Eye Disease In China

Price target decreased by 13% to CN¥83.00

Zhende Medical Co., Ltd. to Report First Half, 2026 Results on Aug 28, 2026

Sichuan Biokin Pharmaceutical Co.,Ltd. to Report First Half, 2026 Results on Aug 27, 2026