Representative Stock Analysis in Chinese Medical Industry and Relevant Investment Recommendations

Abstract

As one of the most significant pillar industries of China, the medical industry can improve the quality of our lives in many aspects; it is also beneficial to the development of the national economy. After the outbreak of COVID-19, the function of the medical industry was further displayed. This paper is aimed at analyzing some representative stocks in the Chinese medical industry by using fundamental analysis and making recommendations for investors based on the analysis results, and reach a conclusion that investing in stocks in the medical industry is a reasonable choice, and investors had better combine of the absolute valuation results with the relative valuation results while making investment decisions so that some cognitive biases could be avoided.