Cao Yuanzheng, Chairman of BOCI Research: The health industry has great potential, and the middle and low income classes are the main body of the market

On November 1, the 3rd Health Industry Investment and Financing Leadership Summit, co-sponsored by People's Daily Health Client, People's Daily Health Times and BANK OF China International, was held in Beijing, with representatives from economics, finance, investment banking, medical industry, clinical experts and other fields attending the meeting.

"The absolute scale potential of China's health industry is at the forefront of the world, and the health concept of Chinese residents is undergoing historic changes, which provides a new opportunity for the development of the health industry." On November 1, the 3rd Health Industry Investment and Financing Leadership Summit, co-sponsored by People's Daily Health Client, People's Daily Health Times and BOCI, was held in Beijing, and Cao Yuanzheng, Chairman of BOCI Research Co., Ltd., delivered a keynote speech.

Cao Yuanzheng, Chairman of BOCI Research Co., Ltd

The health industry is the oldest industry of mankind, from the birth of human beings to the birth of old age, illness and death, accompanied by the emergence of human beings is the emergence of the medical industry. With the development of economy and society, the concept of health is expanding day by day, not only to treat diseases, but also to run through the entire process of life, old age, illness and death.

First of all, the absolute size of China's health market is very impressive. In 2019, China's population over the age of 65 accounts for 12% of the total population, according to the United Nations Chinese forecast of the plan, in 2050 China will enter a deeply aging society, underlying diseases and organic lesions have risen sharply, the need for medical care is more urgent, which not only means that the demand for the health industry continues to unabated, but also means that the health industry has sustainable development prospects. China's average life expectancy has now exceeded 75 years old, and is increasing the trend, survival with diseases, chronic disease management, medical and nursing care has become a new need, which has brought new opportunities for the enrichment of the health industry.

Second, the concept of the health industry is changing. 80% of a person's medical expenses are spent in the last two years of life, the more serious the aging, which means that the greater the expenditure, because the aging of the population is not only a problem that needs to be treated, but also a new need to survive with the disease and combine medical care, which requires our health industry to be proactive and prepared.

Finally, the concept of health of Chinese residents is undergoing historic changes. Population size and demographic structure, income level and income structure of residents and changes in lifestyles and concepts are the driving factors for the development of the health industry. These three factors have become the absolute scale potential of the development of China's health industry, and have also made health services a hot expenditure that has risen rapidly, and the concept of health has undergone historic changes.

At the same time, at present, China's health industry is also a short board, difficult to see a doctor, the difficulty of old-age care continues to plague residents, the health industry has become one of the key points of social development, the proportion of health costs in GDP continues to increase, personal health expenditure has been the same as the government budget expenditure, and social health expenditure with social security as the core has become the first expenditure subject.

China's economy has entered a new stage, GDP growth continues, but residents' income is still in sync with GDP growth, which means that the slowdown in income will restrict the overall development speed of health industries. While we see the above opportunities, the impact of the new crown epidemic has also had a certain restrictive effect on China's health industry.

The income of the middle and high income classes is stable, the marginal trend of service products is inclined to consumption, and more emphasis on quality, and the guide invests in high-end pension communities, which has become the mainstream of the current market for medical and pension products, and then it is also the most competitive field. However, the middle and low income class is the main body of China's population, the potential is huge, so the sustainable improvement of the middle and low income is the key to the smooth development of the health industry, only to meet the healthy development needs of this class, in order to form a new development pattern with the internal cycle as the main body and the internal and external cycles promoting each other.