China’s healthcare stocks have slumped to their cheapest level ever, as a rush into local artificial intelligence beneficiaries draws capital away from defensive sectors.
The CSI Health Care Index is now trading at about 2.7 times price to book, slipping below even the low set during the global financial crisis. Meanwhile, a popular index of Chinese tech stocks trades at around 8 times.
The extreme gap reflects a widening fear-of-missing out on the AI boom, as funds retreat from consumer and healthcare to pile into semiconductors and computing infrastructure. The health gauge itself is only trading near its lowest since September 2024, indicating stronger financial fundamentals than prices indicate.
While AI is benefiting from Beijing’s recent push to gain ground in the global technology race, healthcare remains firmly tied to the policy agenda as well. The latest policy blueprints, including the 15th Five-Year Plan and the 2026 government work report, continue to frame biopharmaceuticals and related fields as strategic emerging industries and future growth engines.