On the morning of February 14, the A-share market experienced a buoyant session, with the main indices showing a tendency to riseThe Shanghai Composite Index closed with a modest gain of 0.25%, while the Shenzhen Component Index surged by 1.1%, and the ChiNext rose by an impressive 1.92%. The trading volume was recorded at 1.06 trillion yuan, which indicates a slight reduction compared to the previous day.

A closer look at sector performances reveals that the application of artificial intelligence (AI) continues to spark considerable interestSectors like smart healthcare, cloud computing, AI computing power, big data, and smart governance all recorded upward movementsThe computer sector, in particular, saw a net inflow of main capital amounting to near 20 billion yuanHowever, mixed fortunes for other sectors include slight declines in ice and snow tourism, cultivated diamonds, and real estate.

The smart healthcare segment was a standout performer during the morning session, witnessing substantial gainsAt its peak, the index for this sector rose by 6.62% and closed up 6.59%. Noteworthy stocks included Jiahe Meikang, which hit the maximum allowable gain of 20%, as well as GuoXin Health and Meilian Health, both of which reached their daily price limitOther notable performers were SiChuang Medical, ChuangYaoHuiKang, DiAn Diagnostic, and WeiNing Health, with increases surpassing 10%.

Contributing to this growth were recent announcements from Huawei, which revealed through their data storage public platform that they would launch a significant pathological model powered by their DCS AI solution on February 18. A research report from Jianghai Securities highlighted that AI applications in pathology will alleviate the shortage of pathology physicians in China, enhance the efficiency and accuracy of pathological slide inspections, and provide precise decision support for clinical treatments, ultimately promoting early diagnosis, early treatment, and quick recovery, thereby facilitating achieving universal health coverage.

The trend towards integrating AI into healthcare is not a standalone phenomenon

Advertisements

Recent developments have seen a flurry of large models being introduced—most notably, JD Health announced a comprehensive range of products dubbed "AI Jingyi," focusing on online health services, alongside the first-ever large model for full-hospital applications known as "JD Zhuoyi." Additionally, in January, Chinese scientists unveiled MedFound, a generic large language model aimed at assisting disease diagnosis published in the prestigious journal Nature Medicine.

The growth potential for the AI healthcare market is staggering, with recent reports from the World Economic Forum projecting significant advancements driven by artificial intelligenceThe forecast anticipates an explosive growth rate of 43% from 2024 to 2032, potentially culminating in a market value of $491 billion (approximately 3.58 trillion yuan). Particularly, the generative AI segment is expected to witness an astonishing annual compound growth rate of 85%, forecast to reach $22 billion by 2027, outpacing other industries significantly.

China’s policies have been notably supportive of AI's integration into healthcare practicesBack in 2017, the State Council called for the promotion of new AI-based methodologies and building a rapid and precise intelligent medical systemLast November, a conjunction of national health authorities issued reference guidelines aimed at advancing innovative applications of "AI Plus" in the healthcare sector.

AI's potential spans several fields within healthcare, ranging from drug discovery, cancer diagnosis, vaccine development, imaging recognition, to data servicesResearch from GuoXin Securities suggests that the burgeoning demand for AI in healthcare could position it as one of the most profound application areas for AI technologyThe healthcare sector is undergoing transformation spurred by the pandemic and an aging population that is increasing the demand for treatment of chronic diseases and eldercareAI technologies are uniquely positioned to enhance early diagnosis and efficient health management, effectively reshaping the landscape of this vital industry.

Furthermore, analyses indicate that in the A-share market, a total of 31 stocks are positioned in the smart healthcare sector

Advertisements

Advertisements

Advertisements

Advertisements