Manufacturers of Traditional Chinese Medicine (TCM) are preparing for initial public offerings in Hong Kong with the objective of capitalizing on opportunities for global growth. Traditional Chinese Medicine (TCM) companies are now participating in the process of initial public offerings (IPOs) in the city, aiming to gauge the interest of foreign investors in their stocks.
The most recent additions to this trend are Sichuan Neautus Traditional Chinese Medicine and Herb Standard, a company based in Hong Kong.
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Hong Kong has been selected as our central location for capital management, research and development, and global transaction processing," declared Jiang Feng, the general manager of Sichuan Neautus, during a forum organized by the government-backed investment promotion agency InvestHK.
Sichuan Neautus submitted an initial public offering application in October. Jiang stated that approximately 30 percent of the total capital raised from investors is of foreign origin.
The company conducts business in 10 international markets, such as Vietnam, Malaysia, South Korea, the US, and Germany. The company, specializing in ready-to-use decoction products, is currently awaiting approval during its latest listing hearing.
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According to its prospectus, Herb Standard intended to utilize the funds from its initial public offering to enhance its foreign production capabilities, establish a global distribution system, and integrate artificial intelligence into its manufacturing operations.
Andy Wong, head of innovation and technology at InvestHK, mentioned that Hong Kong is establishing itself as a central location for traditional Chinese medicine.
As part of its initiative to advance TCM, the city inaugurated its inaugural Chinese medicine hospital in December, situated in Tseung Kwan O. Wong envisioned the potential for collaboration between Hong Kong and mainland China in conducting cross-border clinical trials, noting that many patients from Hong Kong seek treatment in the Greater Bay Area. The clinical data from Hong Kong has a history of international recognition. Since 1997, Guangzhou Baiyunshan has been publicly traded on the Hong Kong Stock Exchange. Subsequently, in 2001, it initiated its listing on the A-share market in Shanghai.
The corporation specializes in the production and distribution of traditional Chinese remedies, modern pharmaceuticals, and biopharmaceuticals. Its diverse portfolio includes over 10 popular consumer brands in the Chinese market, such as the renowned Baiyunshan line of traditional Chinese medicine and the well-known Wong Lo Kat herbal tea brand, which expanded into Thailand recently. Hong Kong plays a vital role as an international financial hub, providing essential assistance to its expansion abroad, according to Chan. He also mentioned that the company's strategy for global expansion includes plans to boost investment in its marketing network and related operations in Hong Kong.
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InvestHK reported that in the previous year, 34 companies specializing in innovation, technology, life science, and health science have established or expanded their presence in Hong Kong. InvestHK operates a global network of over 30 offices, facilitating the expansion of Hong Kong firms into markets in Southeast Asia, Europe, and the Americas. The Hong Kong government has allocated various development sites such as Hung Shui Kiu New Development Area, San Tin Technopole, Hong Kong-Shenzhen Innovation and Technology Park, and the expansion of Science Park in New Territories North to facilitate the growth of the city's innovation and technology sector.