While grabbing breakfast this morning in Beijing I happened across the following headline from the always humorous (although not always intentionally so) : “Medical and Healthcare Investment Soars”. According to the paper, 2011 is on pace to set a new record for inbound investment in China’s healthcare space. Through August, investment has reached $3.5 billion, or “2.7 times more than the total amount over the whole of 2010.” It’s actually more than the last four years combined (2007-2010 totaled out at $3.156bn versus the YTD total of $3.524bn).
Released as part of last week’s here in Beijing, the report noted “132 investments in 2010, more than double the 60 registered in 2009.” Other than the underlying desperate need for new healthcare services and products delivered to Chinese consumers, what is driving this massive inflow of capital is that “more people are now included in China’s medical insurance system.”
Almost across the board – whether talking to specialists in China’s medical device, pharma, private hospital or eldercare market niches – the role of the government as it increases payment to healthcare providers is one of the single most important inflection points which will determine the .
Pay attention to companies like , and who have already made major investments in China in these areas. If they continue to increase their investment portfolio in China for the healthcare space, it is a signal that the time is right for healthcare investors in China to make similar moves of their own. alone has 12 investments in China’s medical space, a portion of which you can see .
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