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.<\/p>\n
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.<\/p>\n
Further strong issuances totalling “several billion more” in the second half across the sector are expected, according to Citigroup.<\/p>\n
“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.”<\/p>\n
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Jiangsu Hengrui Pharmaceuticals achieved one of Hong Kong’s largest deals this year with US$1.3 billion in May. Photo: Getty Images alt=Jiangsu Hengrui Pharmaceuticals achieved one of Hong Kong’s largest deals this year with US$1.3 billion in May. Photo: Getty Images><\/p>\n
So far this year, the MSCI China Healthcare Index and the Hang Seng Healthcare Index have rallied more than 70 per cent and 100 per cent, respectively.<\/p>\n
“Global investors want access to companies at the leading edge of healthcare technology,” Zhang said. Investors were focusing on companies that address cardiovascular, cancer and other life-threatening conditions, as well as chronic diseases such as cardiometabolic and obesity diseases.<\/p>\n
Some companies in these areas saw their shares soar, including Innogen Pharmaceutical Group, a maker of drugs for diabetes and other metabolic diseases, whose shares jumped almost fourfold before closing 206 per cent higher on the first day of trading in Hong Kong.<\/p>\n
Story Continues <\/p>\n
Positive business performance in China’s healthcare sector has been fuelling the stock market rally.<\/p>\n
“The [first half] results for China healthcare mostly met or slightly exceeded expectations,” said Huang Yang, head of China healthcare research at JPMorgan in a report last week. “We remain optimistic that the sector’s share price performance can further improve and potentially exceed the highs recorded in 2022 [and] 2023.”<\/p>\n
Biotech remained the “bright spot” with strong growth, driven by out-licensing, efficiency improvements and cost control, Huang added. In addition, other sub-sectors such as pharmaceutical and contract services organisations were preferred.<\/p>\n
The gain in the Hang Seng Healthcare Index has narrowed to about 11 per cent over the past month, signalling heightened volatility and that the sector could require “broader catalysts to grind higher”, Huang said.<\/p>\n
“Clearly, global and macro sentiment are key, but these companies all have great stories to tell and investors love a good story,” Zhang said.<\/p>\n
This article originally appeared in the South China Morning Post (SCMP)<\/a>, the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app<\/a> or visit the SCMP’s Facebook<\/a> and Twitter<\/a> pages. Copyright \u00a9 2025 South China Morning Post Publishers Ltd. All rights reserved.<\/p>\n Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.<\/p>\n