Siemens Healthineers was recently reported its third quarter earnings, which were greeted with a 7% drop in the share price – as investors were disappointed by a notable slowdown in revenues from China.

The group had said several times since the beginning of the financial year that business in China would stabilise. Sales had stalled after the government launched corruption investigations, including into hospitals. However, this stabilisation failed to materialise. Instead, the slump in sales continued.

At the half-year presentation in May, management were still able to convince the capital markets –already surprised by the continuing weakness in China – that things were really looking up after all.

The reaction of investors to Healthineers' performance was logical. After these experiences, why should anyone believe management assurances that business in China will stabilise in the current fourth quarter? The case also illustrates the increasing nervousness in the stock market. Every deviation is currently being heavily weighted. The fact that Siemens Healthineers is sticking to its forecasts for the financial year is being overlooked.

China is currently an important area of concern for stock market investors. The economy there has always been something of a black box, and economic data can be believed or not. But at least one thing was clear – that there is really high growth. This is no longer guaranteed – especially not if the government intervenes radically in its role as regulator, as it has done in the healthcare sector.

Nevertheless, the share price will recover from this blow. Firstly, business is going really well in all regions outside China, and is even booming in some sectors in the United States. Secondly, the base effect alone will ensure that sales in China grow strongly in 2025. The turnaround is already evident from the fact that sales in the third quarter reached the level of the second quarter.

And thirdly, the acquisition of Varian is a jewel whose value has not been fully recognised. The radiotherapy specialist is growing very strongly. The task now is to raise margins to the level of the Imaging division. This is hard work but not rocket science. As soon as the acquired company is integrated into Healthineers' supply chains, productivity will increase.