(Combating new crown pneumonia) China's economic war "epidemic" record: China's multiple industries "countercurrent" up

China News Agency, Beijing, March 25 (Reporter Chen Su) The epidemic has hit the Chinese economy, and many industries are in trouble. Under unfavorable circumstances, some industries have bucked the trend.

——Medical and biopharmaceutical industry

When multiple industries were unable to resume work due to the epidemic, China's medical and pharmaceutical industry continued to produce continuously. Data released by the National Bureau of Statistics of China show that in the first two months of this year, China's medical protection and living needs increased rapidly, and the output of masks and fermented alcohol increased by 127.5% and 15.6% respectively.

Li Zhan, chief economist at Zhongshan Securities, said that the price of APIs in the pharmaceutical industry has increased rapidly, and orders for consumables related to the treatment and prevention of new crown pneumonia have surged. It is expected that the price increase of drugs is expected to continue for at least one quarter, which will significantly increase the short-term profits of domestic enterprises. Manufacturers of protective products such as masks are expected to face extremely high demand in the next few months.

In addition to short-term positives, the market believes that the future prospects of Chinese medical companies are also worth looking forward to.

Dongxing Securities analysis pointed out that the overseas epidemic has continued to develop, while China has basically controlled the epidemic. The prevention and treatment products such as masks, protective clothing, monitors, and ventilators have achieved capacity expansion, and more surplus capacity can meet export demand, which will be an international opportunity for the Chinese pharmaceutical industry.

Zhiping Investment Chief Economist Lian Ping said that the proportion of the medical industry in China's GDP (gross domestic product) may rise from the current 6.4% to more than 7%. With the sudden and sharp increase in domestic and overseas demand, health, epidemic prevention, and treatment , Equipment, health care and several other sub-sectors will have good performance.

——Food and Beverage Industry

Data from the National Bureau of Statistics show that from January to February, while total retail sales of consumer goods fell by 20.5% year-on-year, commodities closely related to residents' lives showed a growth trend. Grain, oil, food, beverage and Chinese and western medicines of units above the designated size increased respectively. 9.7%, 3.1% and 0.2%. In the past month, the A-share food and beverage sector rose strongly against the trend.

At a time when the catering industry has been hit hard, the food and beverage industry is able to grow rapidly, and it is inseparable from the activity of online sales.

During the epidemic, many communities in China adopted closed management, and people turned to online grocery shopping. Online food sales set a new record. Data from iResearch shows that the daily paid transaction volume during the Spring Festival Festival increased by 350% year-on-year, and the sales of the entire platform during the Spring Festival period at JD.com increased by 470% year-on-year.

Looking ahead, Bohai Securities believes that in the long run, most of the food and beverage industry has attributes of mandatory consumption and good cash flow. At the same time, the new crown pneumonia epidemic may accelerate the clearance of small and medium-sized enterprises, which will further increase the concentration of leading enterprises.

——Online Industry

The epidemic has made the Internet a mere need, more industries are shifting online, and the "housing economy" has brought explosive dividends to many industries.

In addition to more mature online industries such as online shopping and takeaways, further development opportunities have been obtained, and more Chinese people have become accustomed to online purchases. Traditional industries such as entertainment, education, office, and medical care have also achieved great development through the Internet.

Due to the popularity of the live broadcast, the well-known bar OneThird changed to the front line. On February 9th, a five-hour cloud bundi live broadcast on Douyin, with a cumulative online population of more than 1.213 million people, received a reward of nearly 2 million yuan. The number of newly opened live broadcast rooms on Taobao Live doubled year-on-year, and the number of newly opened live broadcasts rose by 110% year-on-year.

According to the research report of Tianfeng Securities, during the Spring Festival of 2020, the daily life of online consultation clients reached 6.712 million, a year-on-year increase of 30%, and the rapid development of Internet medical services.

Shao Yu, chief economist of Orient Securities, said that the postponement of schooling in primary, middle and primary schools has prevented all kinds of social training institutions from conducting offline courses, and online education has benefited. In the next few weeks, some enterprises will still focus on telecommuting. Even if the epidemic is over, some companies will consider telecommuting as a way to improve resilience.

JD Digital Chief Economist Shen Jianguang said that with the gradual elimination of the epidemic, economic and social production will return to normal, and huge online market needs such as education, medical care and office will continue to stimulate, and it is expected to produce super apps like WeChat and Didi. This also brings new opportunities for digital technology innovation in related fields. (Finish)