Speech by FS at Biotechnology Investment Forum of BIOHK2026 (with photos/video)
Following is the speech by the Financial Secretary, Mr Paul Chan, at the Biotechnology Investment Forum of BIOHK2026 today (September 10):
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Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Source: AI-found images
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.
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Speech by FS at Biotechnology Investment Forum of BIOHK2026 Source: HKSAR Government Press Releases
Source: AI-found images
