The 20th Frost & Sullivan Global Growth, Innovation and Leadership Summit and the 5th New Investment Conference Life Science New Investment Forum was held on August 5, 2026. The forum brought together industry leaders, biopharmaceutical companies, medical device firms, investment institutions, and professional service providers to engage in in-depth discussions on topics such as the development of the life science industry, innovative drug research and development, internationalization strategies, and capital market trends. Together, they explored new investment models to promote high-quality development of the life science industry.
At this forum, Mr. Liu Da, Managing Director of China Resources Cinda Life Science Fund, delivered a keynote speech titled “Hong Kong Macro Financial Market and Prospects of Life Science IPOs”.
Mr. Liu Da, Managing Director of China Resources Cinda Life Science Fund
Below are the key points from Mr. Liu Da’s speech:
01
AI Drives the Life Science Industry into a New Golden Age
Mr. Liu Da stated that traditional new drug research and development models are facing structural challenges such as high investment, long cycles, and low returns. The traditional “Double Ten Law” can no longer fully describe the actual research and development pressures. The average cost of bringing new drugs to market continues to rise, and the research and development cycle is generally long. Even when entering clinical trials, the proportion of candidates approved by regulators remains less than 10%, resulting in high failure risks and sunk costs for the industry.
Mr. Liu Da pointed out that the life science industry is experiencing a paradigm shift driven by AI. Unlike the traditional linear R&D model characterized by high investment, low output, and narrow coverage, the new paradigm emphasizes short cycles, high output, and wide coverage. AI can improve research and development efficiency in areas such as target discovery, molecular design, virtual screening, and ADMET prediction, and can be deeply integrated with automated wet lab platforms to reshape the time and cost logic of drug research and development.
According to Mr. Liu Da, AI-driven pharmaceutical development has moved from concept to clinical validation. TakingInsilico Medicineas an example, its self-developed Pharma.AI platform achieved end-to-end intelligent drug discovery. It identified a new fibrotic target TNIK through AI and designed the candidate drug Rentosertib. This drug completed Phase IIa clinical trials and achieved positive top-line results, becoming the world’s first drug discovered using AI to find new targets, design new molecules, and progress to Phase II clinical trials, marking the entry of AI-driven pharmaceutical development into a stage of substantial clinical value verification.
02
China’s life science industry is moving from follower to leader
Mr. Liu Da said that China’s life science industry is shifting from scale expansion to quality improvement and accelerating integration into the global innovation supply chain. In recent years, Chinese innovative drugs have made continuous breakthroughs in source innovation, regulatory submissions, research and development pipelines, and commercialization. The focus of industry development has gradually shifted from “follower innovation” to “source innovation”.
Mr. Liu Da shared that the global participation and commercial value of Chinese innovative drugs are increasing. In 2024, China accounted for more than 30% of global Class I new drugs, up by over 20 percentage points compared to 2015. The number of clinical trial registrations exceeded 7,100, ranking first globally for the first time. By 2025, the number of drugs under research in China is expected to reach 7,041, accounting for 29.5% of the global total; the total BD transaction value will exceed $130 billion, indicating the continuous increase in the global impact and commercial value of Chinese innovative drugs.
03
High attrition rates are normal in the industry; companies need to build core capabilities that can withstand cycles
Mr. Liu Da noted that the biotech industry inherently has high risk and high attrition rates. Listing does not mean a company enters a “safe zone”. Looking at the development history of the US biotech industry, between 1979 and 2000, many companies went public, but only a few remained remembered and active by the industry and capital. The same is true in the Chinese market. Only companies with core technical barriers, commercialization capabilities, and stable financial planning can continue to develop during cyclical fluctuations.
Mr. Liu Da believed that truly able companies to overcome industry cycles mainly fall into three categories. The first category is innovative companies that drive paradigm shifts, where their technology or business model can fundamentally affect specific fields and even reshape the original industry logic. The second category is inclusive companies that significantly improve the accessibility of products or services, expanding the beneficiary population and reducing usage barriers to address widespread and urgent medical and health needs. The third category is companies that can break through common industry bottlenecks. They address structural issues such as long research and development cycles, high investment, low efficiency, high product prices, and limited coverage in the life science industry by using technological innovation to change existing R&D or industrialization models and improve overall industry efficiency and accessibility.
Mr. Liu Da said that the definition of “unicorns” should also shift from valuation orientation to industry status orientation. Truly worthy companies for long-term attention not only have growth potential in valuation but also must establish absolute leadership, market influence, technical barriers, and irreplaceability in niche vertical fields. As industry concentration increases, resources, profits, and influence will further concentrate on leading companies.
04
Hong Kong life science IPO market is entering a strategic positioning window
Mr. Liu Da pointed out that the Hong Kong biotech market has completed a full bull-bear cycle transition. From 2018 to 2021,Chapter 18AThe market broke through profit barriers, initiating the “golden era” of Hong Kong biotech; from 2022 to 2024, affected by macro liquidity tightening, geopolitical risks, and industry R&D competition, the market underwent deep adjustments, and the valuation system was restructured. Since 2025, with policy benefits and improved industry fundamentals, market confidence has recovered significantly, IPO pace has accelerated, and fundraising volume has rebounded strongly.
According to Mr. Liu Da, the Hong Kong biotech IPO market reached a peak in 2021, with 34 companies listing and raising $78.9 billion. During the adjustment period, approximately 13 companies listed annually, and fundraising volume decreased significantly. By 2025, the market recovered significantly, with 26 companies listing and raising $29.265 billion. Mr. Liu Da believes that the strong rebound in 2025 indicates that the market bottom has been established, and life science companies with differentiated competitiveness will continue to attract capital.
Mr. Liu Da said that currently is a strategic opportunity period for deploying in Hong Kong life science IPOs. On one hand, the bottom of the cycle has passed, and the industry is entering a recovery and growth phase. On the other hand, capital is flowing back, and there is an ample supply of high-quality targets. Additionally, compared to the market peak in 2021, the valuation of the Hong Kong biotech sector has digested bubbles and returned to a reasonable range, providing a good window for long-term investors to deploy.
05
Life science companies should focus on governance capabilities and BD timing
Discussing lessons from Hong Kong IPOs, Mr. Liu Da said that life science companies going public need not only technology and pipelines but also solid corporate governance capabilities. A clear equity structure, scientific decision-making mechanisms, transparent information disclosure, and a well-established internal control system are fundamental guarantees to gain trust from the capital market, successfully advance IPOs, and maintain long-term valuation.
Mr. Liu Da further stated that BD timing also determines a company’s survival threshold. The primary goal of corporate development is to “survive”. Companies should not blindly buy low during industry cycle fluctuations. When cash flow is pressured or pipeline value appears ripe for realization, they should decisively proceed with asset sales, License-outs, and other partnerships to ensure R&D investment and business continuity through flexible capital operations, thereby accumulating strength for future development.
06
Hong Kong should create a unique Asia-Pacific financial hub
Mr. Liu Da said that Hong Kong does not need to become another NASDAQ. Instead, it should leverage its advantages to become better itself. Hong Kong’s base relies on the listing and financing needs of over 2,000 Biotech companies in the Chinese mainland. It also possesses internationally recognized legal and financial systems, a maturefamily officeecosystem, bilingual business environment, and a clear talent permanent residence mechanism, which can play a unique role in connecting China and global capital.
Looking ahead, Mr. Liu Da believes that Hong Kong should further develop into an “independent, focused, and distinctive Asia-Pacific financial center”, focusing on specialty sectors such as biopharmaceuticals, green finance, and cross-border investment and financing, and playing a superconnector role between China and the world. For life science companies, future attention should be placed on AI-driven intelligent R&D platforms, innovative drug companies with FIC/BICBICdifferentiation advantages, as well as mature biotech companies with clear commercialization paths, clear cash flow, and clear profit expectations, to seize value leap opportunities in the next capital cycle.
