Recently, China announced that it would end its long one-child policy and allow Chinese citizens to have two children. This is due to the increasingly ageing population and social issues that arise from it. With the newly introduced two-child policy, the healthcare sector would stand to see a growth, with greater emphasis placed on areas related to maternal and infant care, as well as reproductive health.

In addition, China is looking to become a global powerhouse in the pharmaceutical industry. Support for domestic pharmaceutical companies in terms of research and development and manufacturing will be increased. This is part of its shift from “world factory” to high value manufacturing.

International Healthway Corporation

IHC

International Healthway Corporation (IHC) was formed by the management of Healthway Medical Corporation in 2010. Its focus is to provide medical services internationally through the establishment of hospitals and nursing homes overseas. IHC will be a direct beneficiary of the new two-child policy and growing affluence of the Chinese population.

Currently, IHC operates a 125-bed hospital in Wuxi and is building an expansion wing on the neighbouring land which will house 800 beds. In addition, the group is building a 150-bed hospital in Chengdu that specializes in Women and Children medical discipline. Linking back to the two-child policy, that is a timely development.

Raffles Medical Group

RMG1

At the moment, Raffles Medical Group (RMG) operates a medical centre providing family medicine and specialist care in Shanghai. As the financial hub of China, Shanghai has an abundance of affluent Chinese and expatriates living in the city. RMG’s specialist care includes Paediatric, Obstetrics and Gynaecology, which will be catering to a higher number of newborns in future.

Through a joint venture with Shanghai LuJiaZui Group, RMG is building a 400-bed hospital in Shanghai’s Pudong New District. With its current services and planned development, RMG is well poised for growth in China.

Tianjin ZhongXin Pharmaceutical Group

TIAN

Tianjin ZhongXin Pharmaceutical Group (TIAN) will be another beneficiary of the budding healthcare industry in China. With the Chinese government pushing towards a pharmaceutical export powerhouse, TIAN is expected to benefit from the government initiative to develop the industry be it through policy, credit or both.

The development of the pharmaceutical industry of China will likely be part of the 13th five year plan that has yet to be announced. However, government officials through public statements have shown that they are inclined to push the country’s pharmaceutical industry.