Shanghai Daily news

Shares in pharmaceutical companies plunged yesterday with the news that a new round of medicine price slashing is in the works. The slide helped Shanghai shares plummet to a fresh nadir.
The Shanghai Composite Index, which groups both yuan-denominated A shares and hard-currency B shares, dipped 1.24 percent to 1,058.87. It was its lowest close since September 23, 1997, when it finished at 1,041.09.
The A-share Index also fell 1.24 percent to 1,111.28, while the B-share Index closed 0.78 percent lower to 67.31.
"The price cut may further eat into the profit margins of domestic drug makers and pharmaceutical distributors. It will leave them struggling on the bottom line," said Hua Yunjun, an industry analyst with Xiangcai Securities Co Ltd.
The National Development and Reform Commission is currently mapping out a plan to reduce the prices of some drugs. However, when the move will come into effect has yet to be fixed, said the China Economic Times, citing an unnamed source from the country's top planning body.
The price reduction will involve 16 types of antibiotic medicines as well as six other drugs. The move will slash their prices by more than 60 percent on average, the biggest cut that the country has ever made, said the Times.