Made in China:Healthcare,Auto sector &EV supply chain;SA SA

Recent data suggest that: 1) drug consumption registered 11.7% YoY growth in YTD5m17 vs. 12% in 2016; 2) inpatient and outpatient traffic grew 4.4% and 1.1% respectively in 1Q17; 3) government spending growth in health care accelerated to 19% YoY in YTD5m17, vs. 10% in 2016; 4) the price of 6-APA dropped moderately while that of 7-ACA was flat in May; 5) TCM raw material prices continued their upward movements; 6) the corn price increased to RMB1,660/ton in May; and 7) domestic vitamin C prices remained high with ASP of RMB70/kg, and the imported VC price jumped 16%. (Jack Hu - 852 2203 6208)