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.