CPPCC member Nisa Leung says regulatory bottlenecks are slowing the biotech pipeline as foreign capital returns to the sector
Foreign Capital Is Back — But the Rules Are Lagging Behind
Foreign investors are returning to China’s healthcare sector, drawn by renewed optimism about AI-driven drug discovery and a government work report that explicitly names biomedicine as a strategic emerging industry. But a leading venture capitalist says that unless Hong Kong and mainland China reform their biotech listing rules and lower acquisition thresholds for listed firms, the opportunity could be squandered. Nisa Leung, managing partner at Aulis Capital and a member of the Chinese People’s Political Consultative Conference (CPPCC), told reporters on the sidelines of China’s annual Two Sessions in Beijing that regulatory bottlenecks at the China Securities Regulatory Commission are clogging the pipeline of new healthcare IPOs.
The Two Sessions Backdrop
Her comments came as Premier Li Qiang’s government work report, delivered to the National People’s Congress on Thursday, named biomedicine alongside artificial intelligence as a priority sector for the next five years. The signal was welcomed by the healthcare investment community, which has watched with cautious optimism as global pharmaceutical companies and biotech funds begin to re-engage with Chinese and Hong Kong-listed assets after a cooling period. Leung pointed to the successful Hong Kong listing of AI-driven drug discovery company Insilico Medicine, which raised HK$2.28 billion in 2025, as a milestone that demonstrated the city’s potential as a global healthcare capital market.
The Bottleneck Problem
Despite the positive rhetoric from Beijing, Leung said the practical reality is that many promising biotech companies are stuck waiting for approvals from the CSRC before they can proceed to a Hong Kong listing. The lengthy approval process consumes management time and capital, and creates uncertainty that deters foreign investors who could otherwise provide growth funding. She also identified the current takeover threshold for listed companies as another regulatory barrier. Under existing rules, acquisitions that trigger certain ownership thresholds require expensive and time-consuming regulatory processes. Lowering these thresholds, she argued, would make Hong Kong-listed biotech companies more attractive to global pharmaceutical giants looking to deploy capital via strategic acquisitions.
Hong Kong’s Biotech Ambition — and Its Risks
Hong Kong has spent years positioning itself as a leading biotech hub, and its Chapter 18A listing regime, which allows pre-revenue biotech companies to list, was a genuine innovation. The city has attracted listings from dozens of Chinese biotech companies and hosts one of Asia’s most active life sciences investment communities. But the regime’s success has also exposed its limitations. Many Chapter 18A companies have struggled post-listing, with share prices falling sharply as investors grew frustrated with the pace of clinical progress. The regulatory environment, which Leung criticised, has added to the friction.
A Test of Hong Kong’s Remaining Advantages
The biotech listing debate is in some ways a test of whether Hong Kong retains the regulatory nimbleness that made it a global financial centre. Under increasing integration with mainland China’s regulatory frameworks, the city’s ability to offer a genuinely distinct and efficient capital market environment is under question. For democracy advocates, the broader issue is whether Hong Kong’s government — now firmly aligned with Beijing’s political priorities — can advocate effectively for market-friendly reforms when they conflict with mainland regulatory culture. The HKEX biotech listing framework has been praised internationally but requires updating. Meanwhile, organisations like the International Federation of Pharmaceutical Manufacturers continue to push for clearer cross-border clinical trial data recognition, which would accelerate the pipeline Leung is advocating for. The political will for reform exists on paper. Whether it translates into action will determine whether Hong Kong can truly become the biotech capital it aspires to be.
Sze Wing Lee
Digital Media & Technology Journalist, Apple Daily UK
Contact: szewing.lee@appledaily.uk
Sze Wing Lee is a digital media and technology journalist specializing in online platforms, information integrity, and digital culture. Educated at a top-tier Chinese journalism school, she trained in digital reporting tools, verification techniques, and media ethics.
Her work with Apple Daily and other liberal Chinese publications includes reporting on social media ecosystems, online censorship, cybersecurity awareness, and digital activism. Sze Wing’s reporting combines technical literacy with careful sourcing and contextual explanation.
She has newsroom experience covering rapidly evolving digital issues, where speed must be balanced with accuracy. Editors value her disciplined fact-checking and clarity in explaining complex technologies.
At Apple Daily UK, Sze Wing Lee provides trustworthy digital journalism grounded in professional experience, technical competence, and responsible reporting standards.
