After a rough 2021 that featured the Evergrande Crisis and heavy regulatory measures on technology to keep monopolistic moves in check, investors are eyeing opportunities in China. One of the sectors of interest is the biotech sector.
Under the broad scope of healthcare in general, pharmaceuticals are seeing exponential growth, which should also flow over into biotech opportunities. The short-term trajectory already looks enticing for investors eyeing future growth opportunities.
“Established itself as the second largest market in the world, behind only the United States, the Chinese pharmaceutical sector is second to the US market and is forecasted to continue its growth to reach USD 300.9bn by 2025 at a healthy 12.2% CAGR,” a Clinical Trials Arena article said.
Furthering the opportunities for growth is support from the Chinese government. That’s imperative when looking at potential investments in China given the strong oversight of business in the country.
“In the Chinese government’s ‘Made in China 2025’ industrial strategy, the biotech sector is expected to prove a key focal point,” the article said. “Supporting this initiative, a series of policies and regulatory reforms have been implemented in order to streamline the drugs approval process and foster a new culture that enables innovation to flourish.”
“In addition, the State Administration for Market Regulation (SAMR) has revised the Administration Measures for Drug Registration to streamline the complexity of new therapy approval and reduce the cost burden on domestic drug development industry,” the article added further.
China’s Biotech Sector in 1 ETF
Rather than disperse capital among a large swathe of opportunities in Chinese equities for diversification purposes, investors can obtain similar exposure in one exchange traded fund (ETF). One fund to look at is the Global X China Biotech Innovation ETF (CHB).
CHB seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Biotech Innovation Index. CHB gives investors:
- High growth potential: CHB enables investors to access high growth potential through companies central to the development of biotechnology in China.
- Targeted exposure: CHB delivers targeted exposure to an emerging theme and industry.
- ETF efficiency: In a single trade, CHB delivers access to dozens of companies with high exposure to the biotech theme in China.
For more news, information, and strategy, visit the Thematic Investing Channel.