Financial Secretary Highlights Hong Kong's Role in Global Biotechnology Innovation at Biotechnology Investment Forum of BIOHK2026

Speech by FS at Biotechnology Investment Forum of BIOHK2026

Following is the speech by the Financial Secretary, Mr Paul Chan, at the Biotechnology Investment Forum of BIOHK2026 today (September 10):

Professor Yu (Chairman of the Hong Kong Biotechnology Organization and President of BIOHK2026, Professor Albert Yu), distinguished guests, ladies and gentlemen,

It is a pleasure to join you today at BIOHK 2026.

This international gathering brings together several hundred experts and leaders from industry, academia, research, investment and clinical practice to explore the frontiers of biotechnology – from cell and gene therapy and synthetic biology to brain-computer interfaces and longevity science.

Cross-disciplinary in scope and cross-border in outlook, this forum reflects Hong Kong's energy and vision as an international health and medical innovation hub. Building on last year's success, this year's programme features an even stronger line-up of speakers, a broader range of topics and greater opportunities for collaboration. The purpose is clear: to bring innovation from the laboratory into everyday life, and turn scientific breakthroughs into lasting benefits for the society.

Around the world, technological advances are driving a new wave of investment. Artificial intelligence is, of course, attracting enormous attention. But biotech is also gathering strong momentum. Market data indicate that global biotech fundraising reached approximately US$70 billion last year, an increase of more than 10 per cent, while the value of deals approached US$300 billion, which was an all-time high.

The forces underpinning this growth are powerful and enduring. As populations age, helping people live longer and healthier lives have become a pressing priority for advanced economies. At the same time, many developing economies are working to strengthen primary healthcare and disease prevention. Technological progress is opening up new possibilities for addressing these challenges.

Investing in biotech is therefore about more than financial returns. It is a long-term investment with profound mission and meaning.

Beyond the traditional strongholds of Europe and the United States, investors are increasingly looking to China as a source of biotech innovation and opportunity. The Mainland's vast population and healthcare needs create a market of enormous scale. Its investment in top-notch research, frontier technologies, deep talent pool, and competitive manufacturing capabilities are together fostering a vibrant innovation ecosystem. Home-grown large language models and AI platforms are also accelerating drug discovery and development, improving efficiency and reshaping cost structures.

The direction of capital is becoming clearer. Investors are looking beyond the sector's broad promise to identify companies with genuinely original innovations, clear clinical value, strong commercialisation capabilities and the potential for global partnerships.

Market data show that last year, out-licensing deals originating from the Chinese Mainland accounted for around one-third of such transactions globally, up from just 5 per cent in 2020. Here in Hong Kong, by the end of August this year, the Hang Seng Biotech Index returned to the positive territory for 2026, rising by around 10 per cent. Some innovative drug developers and pharmaceutical R&D (research and development) service providers have recorded much stronger gains.

For investors, the question is how to leverage this wave of innovation and capture its growth. For innovators, it is how to take their discoveries to market, and then to the world.

Hong Kong stands ready to be the partner of choice to both - connecting global capital with Chinese innovation, and scientific breakthroughs with commercial application, in pursuit of a better and healthier world.

Let me begin with capital.

As Asia's premier financial centre, Hong Kong is the world's second-largest biotech fund-raising platform. Up till now, close to 300 healthcare companies were listed on the Hong Kong Stock Exchange, with a combined market capitalisation exceeding US$480 billion. Of these companies, around 100 have listed since we introduced Chapter 18A to our Listing Rules in 2018 to facilitate listings by pre-revenue biotech and pharmaceutical companies.

Over the past decade, the healthcare sector's share of overall market turnover has more than doubled, while its trading volume has grown more than sixfold.

A Hong Kong listing connects emerging pharmaceutical companies with global capital and, at the same time, enables international investors to allocate capital to Chinese innovation.

Our financing ecosystem extends well beyond public markets. Hong Kong's private equity and venture capital manages assets amounting to US$250 billion – second only to the Chinese Mainland in Asia.

We also provide strong support to innovation at its earliest stages by channelling patient and long-term capital needed to advance cutting-edge biomedical research, including the use of AI in drug discovery and molecular design.

The Hong Kong Investment Corporation Limited (HKIC), our flagship vehicle for patient capital, has so far allocated 22 per cent of its funds to the biotech sector. But its contribution goes beyond funding. The HKIC is building an ecosystem in which portfolio companies collaborate, draw on one another's strengths and find new opportunities overseas.

Next, let me turn to research outcome translation and industry.

The Guangdong-Hong Kong-Macao Greater Bay Area is rapidly emerging as a leading centre for biomedical innovation.

Hong Kong's two medical schools both rank among the world's top 40. We are building a third one with particular emphasis on clinical research in the Northern Metropolis where incoming health-related strategic enterprises will be based. Their strengths are the combination of talent and research excellence, technological innovation and industry development.

The Mainland cities of the Greater Bay Area complement these strengths with a market of more than 80 million people, advanced manufacturing capabilities and comprehensive industrial supply chains.

Together, we are deepening collaboration in clinical research and drug approval, with the cross-boundary flow of data, biosamples and other elements essential to innovation.

The Hetao Co-operation Zone and the San Tin Technopole have a particularly important role to play.

For companies establishing a presence there, the advantages are compelling. They can tap into both international and Mainland's R&D resources to develop products fitting for both markets.

It is no coincidence that five of the world's top 10 pharmaceutical companies have already chosen Hong Kong as their regional R&D base.

Finally, let me speak about talent.

Hong Kong is open to talent from around the world. We welcome outstanding scientists, skilled professionals and visionary entrepreneurs who are able to turn bold ideas into practical solutions.

We are home to many world-class medical academics, and in recent years our universities have attracted more - among them Nobel laureates and leading authorities in stem cell research and genetics. This growing concentration of expertise will strengthen our capabilities at every stage - from interdisciplinary basic research to clinical translation and medical innovation.

The convergence of capital, talent, enterprises and industry creates powerful opportunities for the biotech sector. Hong Kong is determined to bring these strengths together and become an international hub for health and medical innovation.

Ladies and gentlemen, as we consider the opportunities ahead, we must never lose sight of why innovation matters.

Its ultimate purpose is to help people live not only longer, but also healthier and happier lives with dignity. It is to make medicines and medical devices more affordable, quality healthcare more accessible, and the burden of disease lighter - for individuals, families and the society as a whole.

For the investors and innovators in this room, none of this comes at the expense of commercial success. Addressing unmet healthcare needs is precisely what opens larger markets and creates lasting value. Scientific progress, social benefit and sustainable returns can – and should - advance together.

Hong Kong is ready to help bring that vision to life. We look forward to working with all of you to turn discovery into better care, and innovation into a healthier future for humanity.

I wish BIOHK 2026 every success, and all our guests fruitful discussions, rewarding partnerships and the very best of health.

Thank you very much.

The Financial Secretary, Mr Paul Chan, attended the Biotechnology Investment Forum of BIOHK2026 today (September 10). Photo shows Mr Chan (centre); the Chairman of the Hong Kong Biotechnology Organization and President of BIOHK2026, Professor Albert Yu (second left), and other guests at the event Source: HKSAR Government Press Releases

The Financial Secretary, Mr Paul Chan, attended the Biotechnology Investment Forum of BIOHK2026 today (September 10). Photo shows Mr Chan (front row, first left) touring an exhibition booth at the event. Source: HKSAR Government Press Releases

The Financial Secretary, Mr Paul Chan, attended the Biotechnology Investment Forum of BIOHK2026 today (September 10). Photo shows Mr Chan (second left); the Chairman of the Hong Kong Biotechnology Organization and President of BIOHK2026, Professor Albert Yu (first left), and other guests officiating at the eye-dotting ceremony for the lion dance. Source: HKSAR Government Press Releases

The Financial Secretary, Mr Paul Chan, speaks at the Biotechnology Investment Forum of BIOHK2026 today (September 10). Source: HKSAR Government Press Releases

HKMA, HKEX, DFSA and Nasdaq Dubai establish Strategic Working Group to deepen co-operation between financial markets

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA), Hong Kong Exchanges and Clearing Limited (HKEX), the Dubai Financial Services Authority (DFSA), and Nasdaq Dubai today (September 10) jointly announced the establishment of a Strategic Working Group to strengthen ties between the financial markets of Hong Kong and Dubai International Financial Centre (DIFC).

The Strategic Working Group brings together regulators and exchanges in Hong Kong and DIFC to explore opportunities and develop collaborative initiatives across areas that can contribute to the continued growth and attractiveness of both markets, including sustainable finance, Islamic finance, innovation, and broader capital markets development and markets connectivity.

The announcement was made during the HKMA-DFSA Joint Climate Finance Conference today in Hong Kong, which attracted over 350 participants joining in-person and online across both regions.

This conference marks the third edition of the flagship partnership initiative between the HKMA and the DFSA. It has also been the second year in which HKEX and Nasdaq Dubai are supporting the conference as strategic partners.

The establishment of the Strategic Working Group reflects progress of ongoing regulatory and market dialogues, providing a more formal framework to deepen co-operation, align priorities, and support practical outcomes.

The initiative also reflects a broader commitment to deepen institutional relationships between regulators and exchanges in both financial centres, and to further develop the economic corridor between the Middle East and Asia. Through ongoing engagement and structured collaboration, participating organisations will exchange insights on market developments, discuss emerging opportunities and challenges, and explore areas for future collaboration.

The Chief Executive of the HKMA, Mr Eddie Yue, said, "The Strategic Working Group marks another key step in deepening our institutional ties and market connectivity. By developing this collaboration mechanism, we are establishing a dedicated platform to better understand and align strategic priorities, as well as exploring new initiatives to facilitate smoother trade and investment between Asia and the Middle East."

The Chief Executive of the DFSA, Mr Mark Steward,said, "This initiative reflects the maturing of our shared commitment to collaboration, knowledge sharing, and the discovery of greater mutual benefits within the Dubai-Hong Kong corridor. Cross-market connectivity helps both markets and offers investors greater choices and rewards across both financial centres."

The Chief Executive Officer of HKEX, Ms Bonnie Chan,said, "Global capital flows are increasingly being shaped by the growing economic ties between Asia and the Middle East. As leading international financial centres at the heart of their respective regions, Hong Kong and Dubai have complementary strengths that can help facilitate the two-way flow of capital, ideas and opportunities between the two regions. HKEX's growing commodities presence in Dubai, together with our engagement with exchanges across the UAE (United Arab Emirates), reflects our long-term commitment to this dynamic corridor. The Strategic Working Group is an important next step in translating that commitment into action by deepening collaboration, advancing market connectivity and supporting innovation and sustainable growth."

The Chief Executive Officer of Nasdaq Dubai and Dubai Financial Market, MrHamed Ali,said, "This Strategic Working Group builds on the strong collaboration between Dubai and Hong Kong. Nasdaq Dubai's position as a leading international hub for fixed income and Islamic finance listings provides a strong platform to connect issuers and investors across the Middle East and Asia, particularly in Sukuk and sustainable finance. We look forward to strengthening this collaboration and enhancing market connectivity between the two regions."

About Hong Kong Green Week

The 2026 edition of Hong Kong Green Week, the city's flagship sustainability event, will take place from September 7 to 11. Themed "Future-proofing Sustainable Growth", the week-long programme will feature a variety of events and networking opportunities, bringing together diverse and practical insights across the globe to inspire and drive collective actions towards Asia's sustainable transformation. Visit www.hkgreenweek.hk for more details.

About HKMA-DFSA Joint Climate Finance Conference

The Conference is a flagship initiative jointly established by the HKMA and the DFSA to support and enable the continued development of climate finance acrossAsia and the Middle East. Themed "Driving Transition in a Changing World", the third edition of the conference is also a main event of theHong Kong Green Week 2026. Details of the conference can be foundhere.

HKMA, HKEX, DFSA and Nasdaq Dubai establish Strategic Working Group to deepen co-operation between financial markets Source: HKSAR Government Press Releases