Mainland Pharmaceutical Companies Rush To Hong Kong, Over 10 Firms Queue For IPO

Dizhe Pharmaceutical (688192.SH), a company listed on the STAR Market for four years, recently filed an application to list in Hong Kong, becoming the 14th mainland pharmaceutical issuer to announce Hong Kong listing plans since 2025. Over the past year, a wave of A+H initiatives has emerged, with 13 other drugmakers including Hengrui Medicine (600276.SH; 01276.HK), Maiwei Biotech (688062.SH), Changchun High‑Tech (000661.SZ) and Betta Pharmaceuticals (300558.SZ) launching dual‑listing strategies.

Policy facilitation has been a key catalyst. Since April 2024, the China Securities Regulatory Commission’s explicit support for leading enterprises seeking Hong Kong listings, together with the Hong Kong Stock Exchange’s expedited review measures and the introduction of a dedicated channel for specialized technology and biotech firms, has materially eased cross‑border listing procedures for mainland issuers.

Market participants cite diversified capital access as another primary driver. Zhang Yi, CEO and analyst at iiMedia Research, told Times Finance that pharmaceutical companies are pursuing A+H listings to connect with global capital, hedge A‑share market volatility, and secure foreign‑currency financing to underwrite substantial R&D and overseas commercialization expenditures. A Hong Kong listing also enhances international brand recognition, accelerates global expansion and facilitates international collaborations such as license‑out agreements.

Dizhe Pharmaceutical stated that its Hong Kong filing aims to deepen the company’s globalization strategy, strengthen its international brand profile and enhance core competitiveness. Upon a successful Hong Kong listing, the company intends to leverage the advantages of dual listings to attract international investors and to foster cooperation with multinational pharmaceutical firms to advance its global strategy.

Analysts further note that valuation synergies from an A+H structure, together with southbound capital flows and ETF support, can positively influence corporate valuations. The Hong Kong Exchange’s relatively flexible public‑float requirements and streamlined procedures also reduce compliance costs for issuers. Beyond pharmaceuticals, more than ten A‑share companies across sectors such as new energy, non‑ferrous metals and electrical equipment have announced Hong Kong listing plans since the start of 2026. Observers expect the A+H momentum to persist into 2026, albeit with pronounced differentiation: policy and liquidity are likely to favor market leaders, while mid‑ and smaller‑tier issuers may face heightened pressure.

Innovative drug development remains capital‑intensive and time‑consuming. The industry’s “double‑ten” reality—where a new drug typically requires more than ten years and substantial investment to reach market—means that a single domestic listing often cannot satisfy ongoing financing needs. Dizhe Pharmaceutical illustrates this dynamic: driven by commercialization of Survozitinib (brand name: Survozhe) and Golixitinib (brand name: Gaurizhe), revenue expanded from under RMB 100 million in 2023 to RMB 800 million in 2025, yet this growth did not offset elevated R&D and sales expenditures. The company’s 2025 guidance projects a net loss attributable to shareholders of RMB 770 million, an improvement of approximately RMB 75.96 million year‑on‑year. Its 2025 first‑three‑quarter figures show R&D expenses of RMB 644 million and sales expenses of RMB 424 million.

Dizhe continues to advance clinical programs for its core assets. Survozitinib is undergoing multiple Phase III registration trials to broaden first‑line and adjuvant indications, while Golixitinib, already approved, is being developed for new indications, combination regimens and novel formulations. The company’s pipeline also includes one candidate in registration trials, three assets in post‑proof‑of‑concept stages and one asset in early clinical development. Sustained R&D investment is regarded as essential for maintaining global competitiveness, and Dizhe views a Hong Kong listing as a necessary step to secure additional financing. As of the end of Q3 2025, the company reported cash and cash equivalents of RMB 1.014 billion. The company also indicated that it achieved commercial profitability in 2025 in the sense that revenue covered sales, administrative and other non‑R&D costs, and it has implemented measures to optimize sales efficiency; the sales expense ratio declined to 72 percent by Q3 2025 from 124 percent for full‑year 2024.

Challenges remain for some prospective dual listings. In November 2025, BioRay (688506.SH), which had repeatedly filed with the Hong Kong Exchange, announced a suspension of its global offering and listing process, citing market conditions; reports attributed the pause to an overly ambitious pricing that failed to secure sufficient institutional demand. Rumors have circulated that Hong Kong listing thresholds may tighten, with unconfirmed guidance suggesting a RMB 30 billion market‑capitalization benchmark for dual‑listed companies. While not officially confirmed, some market observers regard a higher threshold as a plausible regulatory response to curb low‑quality applications and to emphasize fundamentals, compliance and technological substance. Regulators have expressed concern about declining application quality; at the end of 2025 the Hong Kong Securities and Futures Commission and the Hong Kong Exchange jointly communicated with IPO sponsors about this issue, and industry bodies have warned that sponsor concentration and hastily prepared listing documents pose risks to market integrity.

Industry commentators caution that a rigid numerical threshold carries trade‑offs. A fixed market‑cap requirement may signal stronger governance and cash‑flow resilience among eligible issuers, but it lacks flexibility and could be difficult to adjust. Senior investment‑bank executives have suggested that a RMB 30 billion threshold would be onerous for most prospective Hong Kong issuers and is unlikely to be formalized in the near term. Among the 14 mainland pharmaceutical companies that have announced Hong Kong plans, only Changchun High‑Tech, Xinnoway (300765.SZ) and Shenzhen Salubris (002294.SZ) currently exceed the RMB 30 billion mark, with market capitalizations of RMB 39.802 billion, RMB 64.653 billion and RMB 52.831 billion respectively.

Hong Kong’s IPO market was highly active in 2025, with Wind data showing 117 listings for the year, a 67.14 percent increase from 2024, and aggregate fundraising of HKD 285.693 billion, up 224 percent year‑on‑year and ranking first globally. HKEX filings indicated 316 companies awaiting listing approval at the end of 2025, and media tallies showed more than 80 biotech firms in the IPO queue by late November 2025, with 23 pharmaceutical and healthcare companies successfully listed.

Regarding market capacity to absorb concentrated supply, analysts warn of short‑term liquidity strain. Although the biotech sector’s liquidity base is solid, simultaneous listings will inevitably divert capital. Under such conditions, resources are likely to concentrate among leading firms; capital allocation and research coverage tend to focus on market leaders, while smaller pharmaceutical companies with limited visibility may face greater valuation and liquidity challenges.