China’s Ministry of Finance (MOF) announces Thursday that government’s 2010 total healthcare budget to grow 14% on-year to CNY444 billion vs 2009′s +9%. MOF says spending will focus on expanding medical insurance and, public hospital reform. 

Credit Suisse keeps China healthcare sector at Overweight after the announcement. “The increased visibility on 2010 government healthcare spending should alleviate concerns on a potential slowdown in the Chinese healthcare sector.” CS  says medical consumables products, essential drugs and drug distribution, should benefit from the government spending. Capital medical equipment may not benefit much near-term due to local governments’ tightening balance sheets.