Ping An Insurance

Ping An invests US$121 million in China expansion by Singapore’s Fullerton Healthcare

Fullerton wants to open 100 clinics in China, the world’s second-largest health care market, to capture rapid growth as the country’s population ages

PUBLISHED : Tuesday, 28 November, 2017, 2:17pm
UPDATED : Tuesday, 28 November, 2017, 11:07pm

Ping An Capital, an arm of China’s Ping An Insurance, has led an 800 million yuan (US$121 million) investment to support Singapore-based Fullerton Healthcare’s expansion into China, the world’s second-largest health care market.

Ping An Capital and its related parties have become the second-largest shareholder in Fullerton after the investment, the Singaporean corporate health service provider said Tuesday in a statement. Ping An plans to leverage its health care resources to help Fullerton establish its business model in mainland China.

Fullerton plans to establish around 100 clinics in major cities such as Beijing, Shanghai, and Guangzhou, it said.

“With the deepening of China’s health care reform, there is no better time for Fullerton Health to expand into the Chinese market,” said Michael Tan, co-founder and group CEO of Fullerton.

“Working closely with our China partners, we look forward to using our expertise to meet the ever-increasing demands of the Chinese health care market.”

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China is currently the world’s second-largest health care market after the US. The country’s total health care spending reached 4.1 trillion yuan in 2015 and is projected to increase to 6.3 trillion yuan by 2020, representing an 8.9 per cent compound annual growth rate, according to Frost & Sullivan, a US-based business consulting firm.

As China’s overburdened public system struggles to cope with increased medical demand due to an ageing population, the private health care market has been growing, and is expected to reach US$21.1 billion in 2020 from 2010’s US$5.7 billion, Frost & Sullivan estimated.

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Fullerton Healthcare can “adapt its well-established business model to mainland China”, said Lui Dong, principal partner for Ping An Capital.

“In addition to capital investment, Ping An Capital will leverage health care resources, including Ping An health insurance, Ping An Good Doctor and Ping An Wanjia Healthcare, to help boost Fullerton Health’s business expansion.”

Ping An Good Doctor is China’s largest online health care and medical platform in terms of users. As of May 2017, the platform provided services to 160 million users, according to the company. Ping An Wanjia Healthcare is a network of 16,000 medical clinics.

Fullerton, set up in 2011 in Singapore, currently operates in Australia, Indonesia, Malaysia and Hong Kong as well as its home market. It owns more than 227 medical centres and has a network of more than 8,000 medical providers, the company said.