China Data Insight (Year-End 2019)

Health care emerged as a top sector for investment in China in 2019 on the eve of the coronavirus crisis

Health care emerged as a top sector for investment in 2019, as capital invested grew 22% from 2018 to reach USD8.9 billion. In particular, investors flocked to advanced pharma­ceutical and biotechnology companies. Notable deals included PAG’s USD532 million buyout of Hisun BioRay, as well as Boyu Capital’s investment of USD249 million in Hansoh Pharmaceuticals. Companies providing contract research organization (CRO) services to the pharmaceutical industry also drew strong investor interest, illustrated by Akeso Biopharma’s USD150m Series D round led by Loyal Valley Capital. The novel coronavirus outbreak had just surfaced by the end of 2019, and the full impact on China’s domestic economy and the global economy remains unknown. The crisis may spur investors in China to further refine health care strategies and deploy capital creatively across all sectors.