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The 2013 All-China Research Team: Health Care, Third: Qiyong (Jack) Hu
Deutsche Banks Qiyong (Jack) Hu, who advances from runner-up to third place, is very diligent, knowledgeable and responsive to client queries, cheers one money manager. Hu declines to discuss specific stock recommendations but reports that he is generally positive on the prospects for his sector, owing to appealing valuations and solid growth. After posting a 21.6 percent gain in 2012 that bested the broad market by 2.9 percentage points, Chinas health care stocks climbed just 3.2 percent year to date through October, against a flat broad-market performance. Looking ahead, pricing issues represent a significant concern. Although less-than-expected pricing pressure is possible, Hu believes, the group could well suffer from larger-than-expected price erosion, which would be exacerbated by competition if multinational corporations cut drug prices. More broadly, he sees the potential for faster-than-expected [gross domestic product] growth recovery, which would certainly buoy the sector. Katie Gilbert |