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"China's traditional drug research and development pattern, which was dominated by generic drugs, is undergoing transformation, and new drug development has ushered in new opportunities. From the perspective of supply and demand, the pharmaceutical industry will continue to be one of the main driving forces for investment in China's primary market," said the report.

"Companies from home and abroad are welcome to join in the development of Jinan, especially in the construction of the pilot free trade zone, to innovate and try and grow together with the city based on their respective advantages in scientific research, capital, talent, brands and management," he said.

"Concerns about a possible policy shift are hurting the market," said Zhang Gang, a Shanghai-based strategist with Central China Securities Co. "Investors can hardly find any sectors where they can make money, so they feel a strong urge to leave the market," he was quoted by Reuters as saying.

"Currently, investors are interested in the chip industry, but it is important to ensure the right investment direction. It is important not to put all the money into semiconductor design. China is lagging behind advanced countries in chip material, equipment and manufacturing, all of which need heavy resource inputs," Ding said.

"China shouldn't have been the first one to do it," said Dr Wu Shixiu, an oncologist and president of Hangzhou Cancer Hospital where several of the patients are being treated.