CMB International released a research report stating that the MSCI China Healthcare Index has surged 59.5% year-to-date, outperforming the MSCI China Index by 24%. However, the healthcare sector has recently experienced a correction, declining around 10% since early October. The report suggests that some stocks remain attractive due to lower valuations and maintains a "Buy" rating on SINO BIOPHARM (01177), WUXI XDC (02268), and other key players.

The bank anticipates a recovery in capital market financing activities, expansion in overseas deals for innovative drugs, and a rebound in domestic R&D demand. Coupled with the U.S. entering an interest rate cut cycle, CXO companies are expected to see improved performance in the second half of the year. The report highlights that overseas clinical progress of authorized innovative drug pipelines could serve as a major catalyst for the sector.