China’s healthcare sector is enjoying a fundraising boom. From January to early September 2025, pharmaceutical companies in the country have raised a total of US$10.6 billion through initial public offerings ( IPOs ), follow-on deals, and block share placements, exceeding the combined amount raised from 2022 to 2024, according to data from Dealogic.

Hong Kong is the primary fundraising venue for Chinese pharmaceutical companies, with 10 issuers raising US$2.1 billion in the first half of 2025.

On the primary market, the most significant deal was the US$1.3 billion dual listing of Jiangsu Hengrui Pharmaceuticals, which became the largest-ever healthcare IPO globally by market cap. Other notable fundraising activities on the Hong Kong Stock Exchange ( HKEX ) were the US$975 million share placement by Wuxi AppTec in July and that of Hansoh Pharma, which raised US$500 million in August.

On the secondary market, the Hang Seng SCHK Innovative Drug Select Index has recorded a 120% growth year-to-date, driven by optimism around drug innovation and regulatory support.

“There has been strong global investor interest in the China healthcare sector across a range of areas,” says Ling Zhang, Citi’s Hong Kong-based head of healthcare investment banking for Asia North & Australia and Asia South. “Issuers will continue to tap into that strong demand to raise financing to support their growth.”

As of August 25 2025, at least 39 healthcare companies have filed listing applications with the HKEX, showcasing a solid pipeline of IPOs that will continue into the second half.

One catalyst for the strong momentum is Chapter 18A of the HKEX listing rules. Introduced in 2018, this regulatory framework enables pre-revenue biotech firms with unique development timelines and capital needs to list on the exchange.

Additionally, the accelerated pace of drug approvals by Chinese regulators has further fuelled equity market growth. China approved 43 innovative drugs in the first half of 2025, according to the China National Medical Products Administration, marking a 59% year-on-year increase and highlighting the sector’s rapid evolution and expanding commercial potential.