China has achieved rapid economic growth in recent times with one of the most enviable growth rates in the world. The health status of Chinese people has seen considerable improvement with rising life expectancy and greater access to health care services. According to the World Health Organisation, China is now the second largest healthcare market in the world but despite this high ranking, the Chinese healthcare market is still relatively immature relative to its size.

By 2020, China’s healthcare spending is expected to account for 6-7% of GDP, which is around US$1 trillion. By 2030, China’s healthcare market is targeted to reach around US$2 trillion, as stated in the Plan of Health China 2030 released by the State Council in October 2016.

Merricks Capital is optimistic about China’s healthcare sector. We see the future growth drivers coming from: 1) aging population; 2) rising household incomes; 3) increasing life expectancy; 4) improving insurance coverage and 5) government policy support. Due to its size and growth potential, every health sector – from biologics to pharmaceuticals to medical devices – will have attractive investment opportunities over the next ten years.

This report discusses these positive catalysts and the companies we like on this theme.

>> Click here for the report