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Wednesday, August 27, 2014

China further loosens foreign ownership of hospitals, (NASDAQ: CHDX)

China will allow foreign investors to wholly own hospitals in seven cities and provinces, further opening up the country's fast-growing private hospital sector.The cities of Beijing, Tianjin and Shanghai and the provinces of Jiangsu, Fujian, Guangdong and Hainan will take part in the pilot test that was launched in July, the Ministry of Commerce said in a statement on Wednesday.The private healthcare sector is a magnet for investors with the number of private hospitals shooting up in the last decade as Beijing looks to take the pressure off its hard-hit state run system.China's healthcare spending is set to hit $1 trillion by 2020, according to McKinsey & Co, a major draw for hospital operators such as Singapore-based Raffles Medical Group Ltd , Malaysia's IHH Healthcare Bhd and U.S.-listed Chindex International Inc.

Chindex International Inc. is a healthcare company. Shares of CHDX remained unchanged at $23.90. In the past year, the shares have traded as low as $14.62 and as high as $23.99. On average, 61923 shares of CHDX exchange hands on a given day and today's volume is recorded at 23072.