Hang Seng Hong Kong Biotechnology Index Report: China's oncology drug market is projected to achieve a compound annual growth rate of 12.4% from 2023 to 2030.

Recently, Hang Seng Index Company released a research report on the Hang Seng Biotechnology Index, pointing out that multiple factors are driving the growth of China's pharmaceutical and biotechnology industry. From 2023 to 2030, the compound annual growth rate of the Chinese oncology drug market is expected to reach 12.4% (global other regions: 8.4%). Companies related to oncology drugs account for over 50% of the index weight in the Hang Seng Biotechnology Index's 30 constituent stocks. Against the backdrop of the rapid growth of the Chinese oncology drug market, the pharmaceutical industry is expected to benefit. The Hang Seng Biotechnology Index ("HSBIO") was launched in December 2019, tracking the overall performance of the largest 30 biotechnology companies listed in Hong Kong. Currently, the 30 constituent stocks come from four business subcategories: Pharmaceuticals (39%), Biotechnology (51%), Pharmaceutical Distribution (6%), and Medical Equipment and Supplies (4%). From the beginning of the year to date (as of October 17, 2025), the Hang Seng Biotechnology Index has risen by 83%, while the Hang Seng Composite Index has risen by 31% over the same period. According to World Health Organization data, China's healthcare expenditure as a percentage of national GDP is still lower than many G7 countries, coupled with an expected annual compound growth rate of 5.3% in per capita disposable income (Frost & Sullivan's forecast data for 2024 to 2028), China's healthcare expenditure as a percentage of GDP stood at 5.9% in 2022, far below other Western developed countries (around 10%). With China increasing healthcare spending and narrowing the gap with developed countries, the pharmaceutical and biotechnology industries are expected to benefit from this trend. At the same time, the United Nations predicts that the proportion of the population in China aged 60 and above will increase from 21% in 2024 to 42% in 2054. The aging population, coupled with rising disposable income, is expected to increase healthcare expenditure, providing a larger market for companies producing such products or providing such services. Furthermore, as the number of cancer cases in China increases, the market size for drugs used to treat cancer is also expanding, driving the growth of the pharmaceutical industry (compound annual growth rate of 12.4% from 2023 to 2030; 7.5% from 2018 to 2023). On the other hand, the central government's focus on innovative drugs is a key driver for the growth of the biotechnology industry compared to generic drugs. Frost & Sullivan predicts that the forecast compound annual growth rate of the Chinese generic drug market from 2023 to 2028 will reach 3.8%, while the forecast compound annual growth rate of the Chinese innovative drug market will reach 7.9%.