The Decision-Making Framework for Hospitals Going Global (Part 2)

In the 9th trading week of 2026 (February 23 - March 1), A-shares continued to hit new highs, while Hong Kong stocks began to adjust. The latter was affected by external news, especially negative expectations such as Deutsche Bank’s pessimistic outlook on AI. This year, the concept of “HALO (Heavy Assets Low Obsolescence)” was proposed and has gained consensus. This understanding is already evident in sectors like petrochemicals and electricity across the US, A-shares, and Hong Kong stocks. In fact, high-quality hospital assets also meet this standard, especially hospitals in Beijing, Shanghai, and other regions with surplus medical insurance funds. It is hoped that the new HALO consensus will extend to hospital assets as the market continues, giving a boost to healthcare stocks this year.

The highlight of this week’s trading volume is Gu Sheng Tang. Breaking the tradition of light trading at the beginning of each year, Gu Sheng Tang’s average daily trading volume exceeded 45 million, making it a leader among Hong Kong medical stocks. As trading volume increased, the stock gradually declined, indicating that some institutions do not approve of the current development and are voting with their feet. Although management is doing everything possible to grow the business, concerns about performance are forming a consensus. We can only hope that management will deliver a stellar annual report to reverse these brewing doubts.

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