In the News: Healthcare Investment Growth and Foreign Investment in Capital Markets
February 19, 2019 | BY
Jacelyn JohnsonChina's healthcare industry saw a 78.64% year-on-year growth in 2018; and a Citibank report says 2019 will see a large pour of foreign investment in China's capital markets.
China's Healthcare Sector Sees 79% Growth in Investment
China's healthcare industry saw a 78.64% year-on-year growth in 2018 with $12.28 billion funds flowing into the sector.
A report by medical research consultancy vcbeat.net, showed that fundraising in the country's medical sector had grown rapidly from the 6.72 percent seen in 2017 to the current level. According to the report, much of the investment was fueled by the surging healthcare demands from the country's aging population, and people's growing healthcare demand as well as the government's policy adjustments.
The pharmaceutical sector continued to be the highest investment which garnered $3.1 billion of funds with deals in this sector seeing a growth of 210% year on year. The biotechnology sector attracted an investment of $1.6 billion and was ranked second.
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Foreign Investment to See Growth in China's Capital Markets
As China continues to widen foreign access to its capital markets, 2019 will see a large pour of foreign investment. According to a report released by Citibank, foreign capital worth $200 billion will flow to China's capital markets this year.
In 2018, China's capital markets welcomed a record-high foreign investment of $120 billion.
The forecast in growth to foreign investment this year is attributed to the increase in channels open to foreign capital, including A-shares in the MSCI Indexes and the inclusion of Chinese bonds to Bloomberg Barclays Global Aggregate Index.
A similar report released by Morgan Stanley echoes Citibank's points, predicting that both the bond and stock markets in China will see an enormous inflow of foreign capital.
According to Morgan Stanley's report, China's A-share market is expected to see foreign investment totaling in the range between $70 billion to $125 billion this year, while its corporate bonds will see an inflow of $300 billion to $400 billion by 2030.
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