China healthcare stocks outgain Hong Kong market as Middle East roils global investments

China’s healthcare sector has been drawing offshore capital to Hong Kong-listed stocks as investors look for safe havens amid global volatility in commodities.The Hang Seng Healthcare Index, tracking some of China’s most innovative pharmaceutical companies including Akeso and Innovent Biologics, has surged about 13 per cent since March 23, outpacing the benchmark Hang Seng Index’s about 6 per cent gain over the same period.“Although the Middle East conflict has created a lot of uncertainty and volatility in the overall market, we have seen investor interest in China healthcare start to improve in the past two weeks, given that healthcare is generally more insulated from commodity prices than many other industries,” said Yang Huang, head of China healthcare research at JPMorgan Chase.The healthcare stock rally comes as commodity markets have whipsawed since late February when the US and Israel launched air strikes on Iran, resulting in the closing of the Strait of Hormuz, the waterway through which one-fifth of global oil and liquefied natural gas passes.Brent crude jumped to a peak of US$121.88 per barrel in March before retreating to US$98.66 on Thursday, while West Texas Intermediate traded at US$97.40 a barrel.The healthcare sector’s improving fundamentals were also providing a tailwind, according to analysts.China’s biotech subsector posted revenue and net profit growth of 36 per cent and 103 per cent, respectively, in 2025, driven by commercialisation and licensing deals, Huang said.