Alibaba Health Information Technology Ltd

00241: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$7.00	Htcdzy	Cvkdxsp

Latest Update to Pending Healthcare E-Commerce Law Is a Positive Development as Risk Is Mitigated

Kai Wang

Sep 2, 2022

Pending legislation was released late on Sept. 1 that relates to the sale of medical products and drugs on e-commerce platforms such as JD Health and Alibaba Health. Under this latest draft of the legislation, there will be some restrictions to the types of drugs that can be sold on China’s healthcare e-commerce platforms, but none are material to JD Health or Alibaba Health’s overall businesses. We view this legislation as a positive for the two companies as it should mitigate regulatory risk for their long-term operations.

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