Templeton Assets Emerging Markets head Mark Mobius says Chinese healthcare companies are great bets now.

"As the Chinese increase their surveillance and quality control, then a lot of this stuff that is saleable in China will be saleable globally," Mobius tells The Wall Street Journal. "That will of course expand the market."

Mobius especially likes Shandong Weigao Group Medical Polymer, a Hong Kong-listed maker of medical equipment such as syringes, blood bags and stents that is likely to see growth in sales as China's medical services expand, but with additional upside from potential sales overseas.

He also favors Luye Pharma Group, which researches and produces new formulations of drugs for use in orthopedics, neurology, gastroenterology and hepatology, and Tong Ren Tang Technologies, which makes traditional Chinese medicines.

These stocks aren’t cheap. However, Chinese healthcare stocks traditionally trade at a premium to their peers in other emerging markets.

Huya Bioscience has joined a strategic alliance designed to help accelerate the development of promising pharmaceutical R&D originating in China’s Taizhou National Medical Hitech Development Zone, genengnews.com reports.

The deal with gives Huya first rights to collaborate on new R&D by its pharmaceutical companies and to partner global development of promising drug projects.