Biotech market cap more than doubles to $1.33t in 2025

Chapter 18A listings quadrupled to 16 as sector valuation jumped 109%. 

Hong Kong-listed biotech companies more than doubled their combined market capitalisation to $1.33t (US$169b) at the end of 2025, although IPO sizes remained below levels seen earlier in the decade, a Skadden report said.

The sector’s market value rose 109% from $635.85b (US$81b) at the end of 2024, whilst biotech listings quadrupled to 16 in 2025 from four a year earlier.

“This strong recovery in 2025, despite ongoing global market volatility, underscores the resilience and growing appeal of the biotech sector in Hong Kong,” Skadden said.

Biotech companies that went public during 2024 and 2025 raised average gross proceeds of $785m (US$100m), higher than the $573.05m (US$73m) average in 2023 and $463.15m (US$59m) in 2022, but below the $2.71b (US$345m) in 2020 and $1.91b (US$243m) in 2021.

Average market capitalisation at the time of IPO also fell to $6.06b (US$772m) for companies listed in 2024 and 2025, compared with $9.81b (US$1.25b) in 2023, $9.42b (US$1.2b) in 2022 and $12.56b (US$1.6b) in 2021.

Companies listing during the two years issued shares equivalent to between 3.85% and 25% of their total issued share capital.

“The smaller deal sizes we are currently seeing may also indicate that some companies pursued an IPO for reasons other than immediate fundraising needs, for example, to offer liquidity to existing shareholders or to provide a platform for future fundraising,” the report said.

The city has raised more than $133.45b (US$17b) through biotech IPOs since the Chapter 18A reforms were introduced, making it the world’s second-largest biotech fundraising platform, according to Skadden.

As of the end of 2025, 83 companies had listed under the regime. Excluding New Horizon Health Limited, which was delisted in October, 82 biotech companies remained listed on HKEX.

Mainland Chinese issuers accounted for most of the recent activity. Of the 20 biotech companies that listed in 2024 and 2025, 14 were incorporated in China and six in the Cayman Islands.

Cornerstone investors also remained prominent in biotech offerings, with 18 of the 20 IPOs attracting at least one cornerstone investor. They subscribed to an average of 41% of each deal, with participation ranging from 9.07% to 81.23%.