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Article: China investors energise Hong Kong biotech stocks. Is foreign money missing out?

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5 / 10

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Mainland Chinese investors are driving a rally in Hong Kong's biotech stocks, particularly targeting smaller companies with limited share availability. This surge coincides with the inclusion of at least 13 healthcare firms in the Stock Connect program, facilitating easier southbound investment.

Despite this activity and the sector's growing international profile, foreign capital remains cautious towards these stocks. Analysts note mainland investors are also encouraged by a rise in significant out-licensing deals within the biotech industry.

The main topics covered are the influx of mainland Chinese investment into Hong Kong's biotech stocks, the cautious stance of foreign capital, and the expansion of the Stock Connect program to include more healthcare companies.

Original URL

https://www.scmp.com/business/china-business/article/3346016/china-investors-energise-hong-kong-biotech-stocks-foreign-money-missing-out?utm_source=rss_feed

Source Feed

Tech - South China Morning Post

Published Date

2026-03-09 23:30

Fetched Date

2026-03-09 20:30

Processed Date

2026-03-09 20:31

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Present

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Raw Extracted Content

China investors energise Hong Kong biotech stocks. Is foreign money missing out?
Stock Connect reshuffle reflects biotech sector’s growing role on international stage, though overseas funds remain cautious
Foreign capital, however, remained cautious, analysts said.
“Mainland buyers have been the main force behind the latest healthcare rally. They tend to chase smaller-cap names where a tight free float makes it easier to push prices higher,” said Jonah Chen, head of healthcare research at China Merchants Securities (Hong Kong). “They are also getting excited by a surge in big-ticket out-licensing deals.”
His comments came as at least 13 healthcare companies – including AI-driven drug discovery firm Insilico Medicine, innovative drug maker Xuanzhu Biopharmaceutical, and CARsGen Therapeutics, developer of cutting-edge cancer treatment CAR-T cell therapy – were among 42 stocks added to the southbound list, according to an exchange filing with the Shanghai Stock Exchange.
The southbound leg of Stock Connect allows mainland Chinese investors to buy and sell shares listed in Hong Kong through the Shanghai and Shenzhen exchanges.