Following is the speech by the Financial Secretary, Mr Paul Chan, at the Biotechnology Investment Forum of BIOHK2025 today (September 11):

Albert (Chairman of the Hong Kong Biotechnology Organization and President of BIOHK2025, Professor Albert Yu), distinguished guests, ladies and gentlemen,

     Good morning. It is a great pleasure to join you today at the opening of the Biotechnology Investment Forum, here on Day 2 of BIOHK 2025. A warm welcome to all participants joining us from Hong Kong, the Chinese Mainland and around the world.

     This Forum brings together a global community of pioneers, including scientists, entrepreneurs, investors and policymakers, who are leading the way in biotech development. It offers a valuable platform to exchange insights, foster collaboration, and explore opportunities to drive the next wave of growth in this rapidly evolving sector.

     We meet at a time of rapid advancement in biotechnology, especially as it converges with artificial intelligence. Yet alongside advances and breakthroughs, the sector is grappling with a number of critical issues. How can we accelerate R&D (research and development) efficiency and clinical translation? How do we strengthen supply chain resilience and overcome technological barriers? How can we ensure access and inclusivity in biomedicine? And how do we equip biomed talent in an AI-driven world? 

     At the same time, the rise of China as a biotechnology leader is reshaping the global innovation landscape. The Mainland is now the world's second-largest biopharmaceutical market. Its biotech enterprises account for nearly 30 per cent of global innovative drug assets, up from just 10 per cent in 2019. This remarkable shift reflects not only our country's growing capability and capacity, but also its long-term strategic commitment and sustained investment in the sector. 

     In this context, there is no better place than Hong Kong to host this important discussion. Our city welcomes ideas, talent and capital from around the world. We serve as a gateway to the fast-expanding Mainland market, and as a launch pad for Mainland innovations to go global. 

     Indeed, under the "one country, two systems" framework, Hong Kong enjoys the best of both worlds. We uphold the rule of law and continue to practise the common law system. With the free flow of capital, information and talent, Hong Kong remains deeply connected to the international community. Our intellectual property protections align with the best international standards, and our financial institutions and professional services are world-class. These qualities make Hong Kong a reliable and trusted partner for technology development and investment.

     More specifically, allow me to highlight four key areas where Hong Kong can make a difference for global biotech development.
     
A dynamic I&T ecosystem 

     First, our innovation and technology (I&T) ecosystem is growing in depth and breadth. It supports the full biotech value chain, from upstream research and product design to downstream commercialisation and market expansion. 

     At the upstream level, Hong Kong's universities are world leading. Five of them rank among the world’s top 100, with two medical schools among the global top 25. We have also established 14 dedicated healthcare research centres led by eminent academic and clinical researchers. Their work spans genomics, regenerative medicine, organoid models, cell therapy and beyond.

     In the midstream, we are stepping up efforts to translate research into real-world applications. Government schemes such as the RAISe+ Programme are helping to bridge the gap between laboratories and market, facilitating the growth of new biotech ventures.

     Downstream, we are nurturing targeted industries where Hong Kong holds strategic advantages, in particular biotech and AI. Today, Hong Kong is home to over 4 700 start-ups and nearly 20 unicorns, many of which are nurtured and supported by the Hong Kong Science Park and Cyberport.   

     We continue to attract strategic enterprises from around the world. Over the past two years, more than 80 such enterprises have established a presence in Hong Kong, investing over US$6.5 billion and creating some 20 000 quality jobs. A new batch of enterprises, including several world-leading pharmaceutical companies, will soon join their ranks.

     One of Hong Kong's unique advantages is its role as a convergence point for international and Mainland data. This is particularly valuable for biotech enterprises engaged in clinical trials as well as drug discovery and development.  

     Artificial intelligence is central to the next wave of biotech innovation. Hong Kong has prioritised AI as a core industry and a key enabler to transform other sectors. We are building our AI capabilities across five pillars: data, algorithms, computing power, capital and talent. In Hong Kong, a number of homegrown start-ups and foreign enterprises are actively engaged in AI-driven drug discovery, diagnostic tools and personalised medicine.  

Access to capital 

     Second, Hong Kong offers biotech firms access to deep and diversified capital pools.  

     Our stock market is a prime example. In the first seven months of 2025, US$16 billion was raised through IPOs (initial public offerings) in Hong Kong, a six-fold increase compared to the same period last year. The biotech sector was a key beneficiary, with 15 IPOs raising nearly US$3 billion. The Hang Seng Biotech Index has surged more than 85 per cent, outperforming regional and global peers. 

     This growth builds on our capital market reforms. In 2018, we introduced a listing regime for pre-revenue biotech companies and companies with weighted voting rights structures. These reforms have transformed the Hong Kong stock market. 

     As of July, more than 75 biotech firms had listed under the reformed regime, raising over US$30 billion. This makes Hong Kong the second-largest biotech fundraising centre globally.

     We are also enhancing our listing process. In line with this year's Budget, a dedicated channel for technology enterprises has been launched to provide tailored support to biotech and deep-tech firms preparing for IPOs. This initiative helps companies navigate the process with greater clarity and confidence.

     Beyond public markets, we offer a robust private capital ecosystem. Hong Kong is home to over 650 private equity and venture capital firms, with US$230 billion in assets under management, second only to the Chinese Mainland in Asia.

     We understand that some of the most cutting-edge biotech segments - such as novel proteins, frontier diagnostics and surgical robotics - require long-term investment. This is where patient capital comes into play. The Hong Kong Investment Corporation (HKIC), which was established in 2022 with US$8 billion initial capital, invests and co-invests in biotech and hardtech companies, among others. To date, it has deployed about 20 per cent of its invested capital in biotech projects. 

     The HKIC also plays a crucial role in connecting Hong Kong and Mainland innovations with global capital, enabling cross-border partnerships and supporting their effort to go global.

Supportive Government policies

     Third, Hong Kong's policy and regulatory environment is supportive of biotech innovation.  

     In addition to the finance side mentioned earlier, we are working to establish a primary evaluation mechanism for drug approvals. This will allow Hong Kong to independently review and approve medical products and devices, aligning them with international standards and accelerating their time to the market.

     To this end, we are establishing the Hong Kong Centre for Medical Products Regulation. We have joined the International Council for Harmonisation as an observer and are investing in the needed infrastructure, systems and talent to support this transition. Our target is to begin phased implementation of the new framework in 2026, with full rollout by 2030.

     This initiative will enhance Hong Kong's role as a base for R&D, clinical trials and regional co-operation. Indeed, for international pharmaceutical firms, approval in Hong Kong may serve as a strategic pathway to get faster access to the Mainland market, especially within the Greater Bay Area (GBA).

     Our collaboration across the GBA continues to deepen. With 87 million residents, the GBA is a vast market for health products and a key resource for clinical research. In the Hetao Innovation and Technology Park, also known as the Loop Area, Hong Kong and Shenzhen have established cross-boundary clinical trial institutions that support studies complying with the standards and requirements of both jurisdictions.

     We are also working to enable the seamless flow of data, capital, talent and other factors of production with Shenzhen in the Hetao area, creating an innovation corridor for biotech and pharmaceutical companies. 

Welcoming global talent 

     Finally, talent is a cornerstone of our biotech strategy. Since late 2022, Hong Kong has received over 510 000 applications under various talent admission schemes, with more than 340 000 approvals and nearly 230 000 arrivals to date. And under one of the schemes - the Top Talent Pass Scheme, around 20 per cent of the talent are engaged in innovation and technology.

     We continue to attract top researchers, scientists and professionals from around the world. There is a growing number of ethnic Chinese scientists looking to Hong Kong as a globally connected and friendly base to work.  

Closing 

     Ladies and gentlemen, the opportunities in biotechnology are enormous. With our institutional strengths, deep financial resources, research excellence, supportive government policies and world-class talent, Hong Kong has what it takes to shine in the next wave of biotech breakthroughs. 

     Whether you are an innovator seeking capital, an investor looking for promising projects, or an organisation seeking biotech solutions - Hong Kong welcomes you. 

     Let us work together to turn today's ideas into tomorrow's innovations.

     Thank you, and I wish you all a successful and rewarding Forum. 

Ends/Thursday, September 11, 2025
Issued at HKT 12:03

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