A contributor among individual stocks was Sino Biopharmaceutical (HKSE:01177, Financial), a leading pharmaceutical drug manufacturer in China. Despite the government's push for affordable health care and the overhang of price cuts in generic drugs, Sino Biopharmaceutical has been executing well in terms of diversifying and enhancing its product mix to include more innovative oncology drugs, which have shown considerable growth. The company also has increased its spending on research and development in past years, and we believe it has built a sufficiently strong pipeline to capitalize on the growth of innovative drugs in China in the years ahead.
From Matthews China Fund (Trades, Portfolio)'s third-quarter 2019 commentary.
