Global pharma giants invest in Chinese biotech for innovation and growth
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
Global pharmaceutical giants are intensifying their investments in China's rapidly expanding biotech sector, drawn by the industry's substantial room for valuation growth and innovative capabilities, according to speakers at the Global Health Summit held in Hong Kong .
Key Points
- AstraZeneca established a joint venture with CSPC Pharmaceutical Group to build a drug manufacturing facility in Shijiazhuang, Hebei province, holding a 49 per cent stake .
- Swedish medical products provider Mölnlycke formed a joint venture in May with Zhejiang-based Zhende Medical to combine business portfolios and co-develop products .
- Cross-border deals for innovative drugs reached a record US$110 billion in the first half of 2026, approximately 80 per cent of the previous year's total, according to state media .
- Xu Chenming, head of healthcare at Citic Securities, noted multinationals are shifting from asset-heavy operations toward investing in innovative Chinese companies .
- Jiang Yu, chairman of Huatai United Securities, stated that Chinese healthcare companies still lag behind US peers in valuations despite growing innovation .
Why It Matters
Hong Kong's position as a leading financial hub positions the city to benefit from increased cross-border pharmaceutical deal flow and biotech listings. The summit's location in Hong Kong underscores the city's growing role as a conduit connecting international capital with mainland Chinese innovation, potentially boosting the local financial and professional services sectors.
Hong Kong's position as a leading financial hub positions the city to benefit from increased cross-border pharmaceutical deal flow and biotech listings. The summit's location in Hong Kong underscores the city's growing role as a conduit connecting international capital with mainland Chinese innovation, potentially boosting the local financial and professional services sectors.