China's healthcare sector sees record US$10.6 billion fundraising as biotech booms

Core Insights - China's healthcare sector is poised for record fundraising in 2023, driven by strong global investor demand and growth momentum [1] - Year-to-date fundraising has reached US$10.6 billion (HK$82.5 billion), surpassing the combined total from 2022 to 2024 [1] - Significant equity capital market activities include IPOs, follow-on deals, and block share placements, primarily in Hong Kong [1] Fundraising Activities - Wuxi AppTec raised approximately US$980 million through a Hong Kong share placement [2] - Hansoh Pharmaceutical Group secured US$500 million from a new shares issue [2] - Biotech firms Akeso and Innovent raised US$449 million and US$548 million, respectively [3] - Jiangsu Hengrui Pharmaceuticals completed one of Hong Kong's largest deals this year with US$1.3 billion in May [3] Market Trends - Strong issuances are expected in the second half of the year, with "several billion more" anticipated across the sector [3] - The MSCI China Healthcare Index and the Hang Seng Healthcare Index have increased by more than 70% and 100%, respectively [4] Investor Interest - Global investors are keen on companies at the forefront of healthcare technology, particularly those addressing cardiovascular, cancer, and chronic diseases [5] - Companies like Innogen Pharmaceutical Group, which focuses on diabetes and metabolic diseases, have seen significant stock price increases, with shares rising almost fourfold before closing 206% higher on the first trading day in Hong Kong [6]