“China’s aging population, rising incomes and increasing urbanization may provide a sustained catalyst for growth in China’s healthcare sector,” according to KraneShares.
The Chinese health care industry may be a growth opportunity, especially given China’s large population. The health industry in China is also far less developed than those in Western countries, so the emerging Asian country will have to invest and expand its health care facilities and infrastructure to meet the growing demand from a large population.
“China currently has the fastest growing major healthcare market in the world with a five-year compound annual growth rate of 17%, compared to just 4% in the United States, and -2% in Japan,” according to KraneShares. “China is the second largest healthcare market globally with total healthcare expenditure reaching $594 billion in 2015. A number projected to reach $1.1 trillion by 2020. There is still opportunity for considerable growth in China’s healthcare market with per capita health spending at just $420, compared to an average of over $5,800 for the world’s top eight healthcare markets in terms of per capita expenditure.”
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