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Digitalisation accelerates healthtech boom in China

Changing demographics, rising affluence, lifestyle diseases and growing health consciousness are expected to fuel China’s healthcare sector’s growth. However, a shortage of medical professionals and high costs, are key challenges to be addressed, says Kieron Poon, Portfolio Manager, at Eastspring Investments. “Fortunately, the ongoing digitalisation is helping to alleviate some pressure, and this is resulting in many exciting investment opportunities,” Poon adds.

China’s healthcare expenditure is expected to almost triple from RMB 6.5 trillion in 2019 to RMB 17.6 trillion by 2030, according to Frost & Sullivan, with tech-advancements driving growth. The Covid-19 pandemic has further accelerated the digitalisation of the healthcare sector. “Two areas that we believe are poised to benefit greatly from telemedicine’s rise are online drug sales and artificial intelligence (AI) for medical diagnosis,” says Poon.

Read more on Eastspring.com/lu.