Fast-paced reforms are being pumped into health-related industries, but are they well prescribed or will they cause more pain for unwary investors? Richard Li reports
Agrowing middle class and an aging population, rising life quality demands, a feverish state focus on innovation, and a polluted environment – all these symptoms have stimulated soaring investment in health-related industries in China, from domestic and foreign investors alike.
Benefiting the most from this trend are sectors such as healthcare, pharmaceuticals and life science – different markets that have a dynamic interaction with each other. Game rules vary for those industries, but are all unstable.
Change has been especially prevalent in the past year, as the central authorities embarked on renovating the regulatory regime to speed up approvals, encourage innovation and loosen their grip on foreign investment in health markets. But the current regulatory balance shifts slightly towards domestic companies, so foreign players may need to revisit their strategies in China, and be aware that the landscape of competition and co-operation with local companies has been refreshed.