OBJECTIVE: To ascertain the main influencing factors of market performance of pharmaceutical industry in China for governmental reference in formulating pharmaceutical industry-related policies. METHODS: The influencing factors of market performance of pharmaceutical industry in China were optimized using multiple linear regression. RESULTS & CONCLUSIONS: The major influencing factors were proved to be the following: the minimum economical scale,current industrial concentration and production expansion capability,which are a little bit different from the classical market performance theory in which the three influencing factors are industrial market concentration,economical scale,and product differentiation.