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China Online Medicine Shares Tumble as Beijing Clarifies Rules

  • Ping An Healthcare, Alibaba Health lose over 17% since Tuesday
  • Government’s draft rules fuel worry on sector’s growth outlook

Shares of Chinese online health-care providers have been battered since the government released draft rules last week that deepened concerns about restrictions on growth potential for the sector.

Ping An Healthcare and Technology Co. has plummeted more than 30% while Alibaba Health Information Technology Ltd. has lost nearly 18% since the proposed regulations were published on Oct. 26. The two stocks are the worst performers in Hong Kong’s Hang Seng Tech Index during the period. Rival JD Health International Inc. has dropped about 6%.