China’s healthcare sector is on track to secure record fundraising this year, driven by robust global investor demand and growth momentum, according to analysts.
Several Chinese biopharmaceutical companies have tapped equity capital markets – mainly in Hong Kong – for initial public offerings (IPOs), follow-on deals and block share placements this year.
Year to date, the fundraising reached US$10.6 billion (HK$82.5 billion), more than the combined total from 2022 to 2024, according to Dealogic data.
Recent months saw Wuxi AppTec, Asia’s leading contract pharmaceutical research provider, raise about US$980 million via a Hong Kong share placement, while Hansoh Pharmaceutical Group secured US$500 million in a new shares issue.
Biotech firms Akeso and Innovent raised US$449 million and US$548 million, respectively. On the IPO front, Jiangsu Hengrui Pharmaceuticals achieved one of Hong Kong’s largest deals this year with US$1.3 billion in May.
Further strong issuances totalling “several billion more” in the second half across the sector are expected, according to Citigroup.
“There has been strong global investor interest in the China healthcare sector across a range of areas,” said Ling Zhang, Hong Kong-based head of healthcare investment banking for Asia North, Australia and Asia South at the US bank. “Issuers will continue to tap into that strong demand to raise financing to support their growth.”
