China’s health care sector consolidation to produce global champions, says investor in newest Hong Kong IPO winner
- Greater transparency and competition will drive capital and talent towards companies with best track records, Singapore-based CBC Group founder says
- CBC-backed Everest Medicines surged 32 per cent in Hong Kong stock market debut after its HK$3.3 billion initial public offering
Greater transparency and competition will drive capital and talent towards companies that have the best track records, said Fu Wei, founder and chief executive officer of Singapore-based CBC Group which manages US$2 billion of assets mainly focused on health care.
“In the information age, the good companies will be known to all the investors, the industry, the government and talent very quickly,” he told the Post. “Most of the resources will go to the top players.”
He expected 30 to 50 companies to dominate various segments of China’s health care industry within 10 years.
The nation has over 7,000 companies in the pharmaceutical industry alone, according to Adam Zhang Yu, a Hong Kong-based managing director of global investment bank E.J. McKay, who spent 15 years advising on pharmaceutical deals.
