Frost & Sullivan: "A+H" dual listing has gone beyond financing and is becoming a key fulcrum for healthcare companies to move towards long-term upgrading

This phenomenon is driven by both internal and external factors. Firstly, there is the window period effect. Recently, there have been signs of improved liquidity and investor confidence recovery. Coupled with a series of reforms promoted by the Hong Kong Stock Exchange, such as 'dual-currency settlement', 'lowering the threshold for new shares', and 'simplifying the review process', these have all increased the predictability of corporate listings. Many healthcare companies choose to 'grab the window' during this stage and complete financing before the capital market sentiment warms up; secondly, companies themselves have financing and internationalization demands. After preliminary pipeline research and development or product iteration, many companies enter the late clinical or commercialization stage, with a significant increase in capital needs. The international nature of the Hong Kong market makes it an important platform for Chinese innovative healthcare companies to raise funds overseas and gain international exposure. Finally, there is an adjustment in capital strategy. When the valuation rebounds, the market game space is reopened. Many early investors who experienced exit obstacles in the past two years are now urgently seeking some liquidity through IPOs after the market warming signals appear.

Recently, many healthcare companies that have already listed on the A-share market have also chosen to go to Hong Kong for their second listing, which mainly reflects new considerations in financing and international layout. On the one hand, the policy environment in the Hong Kong market has improved, the review pace has accelerated, and it is more inclusive of innovative and research and development-oriented enterprises, providing new financing channels for companies; on the other hand, compared with the A-share market, the Hong Kong market has a more mature international investor base and a valuation system for innovative drugs and medical devices, which helps companies gain recognition and pricing from international capital. In addition, listing in multiple locations can also enhance a company's global visibility and governance structure transparency, creating conditions for its overseas market expansion, mergers and acquisitions, and international cooperation. Overall, A+H or dual listings are not just financing activities but an important step for healthcare companies to establish a second growth pole in the global capital system and achieve long-term strategic upgrading.