Global pharma giants turn to Chinese biotech to tap innovation, valuation growth

Global pharmaceutical giants are increasingly investing in China's burgeoning biotech sector due to its significant potential for valuation growth. This shift in strategy was highlighted by speakers at the Global Health Summit in Hong Kong. Multinational pharmaceutical companies are moving away from asset-heavy operations in China and are instead focusing on investing in companies that possess strong innovation capabilities. This approach also involves deeper integration with Chinese partners. According to Xu Chenming of Citic Securities, these investments aim to foster the growth of Chinese companies, enabling them to compete internationally.