China’s Health-Care Stocks Are Scorching Hot
In a year marred by concerns over a budding trade war with the U.S., one corner of the Chinese stock market is racking up some scorching gains. Buoyed by its massive aging population and above average profit growth forecasts, China’s health-care companies have managed to return nearly 30 percent in 2018, by far the best-performing corner of the mainland market. With the run-up comes increased valuations, which are now at levels unseen since 2008. “The sector may touch a valuation ceiling soon if it rallies further,” said Sun Jianbo, president of Beijing-based China Vision Capital Management.