China's healthcare firms bag $6.8b worth of deals in 2020 YTD

The sector has gained attention from investors since the pandemic.

China’s healthcare and biotech firms are capitalising on a surge of interest in the sector due to the coronavirus pandemic by raising a record $6.8b in fresh equity-linked transactions this year, Reuters reported.

Although 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 realise 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 9926.HK.

China’s healthcare expenditure accounted for just 6.6% of its GDP in 2018, compared with 17.7% in the United States, according to official data from the two countries.

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