China’s healthcare and biotech firms are capitalizing on a surge of interest in the sector due to the coronavirus pandemic by raising a record $6.8 billion in fresh equity-linked transactions this year, reported Reuters.
While healthcare and related sectors have long been popular, with investors betting that China’s ageing population and growing middle class would boost spending, the virus has raised expectations that Beijing will funnel even more funds into them.
“Because of the epidemic outbreak, the biotech, healthcare industry has been valued more by everyone. People realize that no matter what the economy looks like, patients always need to see the doctor,” said Xia Yu, co-founder and CEO of Chinese biotech firm Akeso Inc.
Chinese biotech and healthcare firms have raised $2.1 billion from IPOs in mainland China, Hong Kong and the United States this year, nearly double the rate this time last year, according to Refinitiv data. Healthcare-related companies have been a driving force in Hong Kong in particular this year, accounting for 30% of the total $2.78 billion raised via IPOs in the city, Refinitiv data showed.