The ‘biology winter’ thaws: why investors are piling into Hong Kong’s biotech IPOs

Hong Kong’s biotech fundraising momentum is expected to extend into 2026, as licensing deals and strong post-initial public offering (IPO) trading last year persuaded investors that China’s drug developers are worth backing again – even before they generate revenue.

Pharmaceuticals was one of the best-performing sectors for Hong Kong IPOs in 2025, he added.

Still, analysts warned that the same forces drawing capital back to the sector also underscored its underlying risks.

“Biotech remains a high-risk, cash-hungry sector,” said Edward Au, Deloitte China’s southern region managing partner. “With US interest rates expected to fall and borrowing costs set to decline, the field is likely to draw more investors.”

More candidates are lining up. In the IPO pipeline awaiting approval is CSPC Innovation Pharmaceutical, described as the world’s largest caffeine producer, which has commercialised two antibody drugs and two mRNA vaccines and built a pipeline of 15 drug candidates in clinical or later stages of development, including nine antibody-drug conjugate candidates and one mRNA vaccine candidate.