During a press conference on October 9th, representatives from the Guangdong Provincial Information Office unveiled an action plan designed to promote high-quality development in the province’s biopharmaceutical industry. It is projected that by the first half of 2024, Guangdong will have 59 listed companies in this sector.
Responding to a reporter’s question, an official from the Guangdong Provincial Financial Office detailed the provincial government’s issuance of a set of implementation guidelines in early February 2024, known as the “15 Policies for Science and Technology Finance.” This initiative encompasses a broad spectrum of policies addressing venture capital, bank loans, financing guarantees, multi-tiered capital markets, technology insurance, cross-border finance, service systems, and financial technology. The aim is to establish a diversified and comprehensive financial support system that meets the needs of technology-driven enterprises, particularly those in the biopharmaceutical sector. This includes promoting the creation of specialized financial institutions and teams, tailored risk control mechanisms, incentive structures, and customized lending standards.
When it comes to credit support, there is a significant focus on guiding banks to enhance their offerings of technology-focused loans. The government is committed to boosting financial backing for strategic emerging industries, with a specific goal of achieving a loan growth rate for tech enterprises that either matches or surpasses the overall loan growth during the 14th Five-Year Plan period. By the end of May 2024, the loan balance for high-tech enterprises in Guangdong reached 1.49 trillion yuan, reflecting an impressive nearly 30% year-on-year increase. The adoption of intellectual property pledge loans and the corresponding total loan amounts have also experienced notable growth, achieving 1.41 times and 1.8 times the figures from the previous year, respectively.
On the capital market side, Guangdong is actively encouraging biopharmaceutical companies to consider listing on both domestic and international stock exchanges. As of mid-2024, the province has seen 59 publicly listed biopharmaceutical companies, which boasts a combined market value of 992.18 billion yuan, total operating revenues reaching 227.49 billion yuan, and net profits of 20.415 billion yuan, positioning it as the leading region in China.
Moreover, the province is working diligently to enhance its pool of potential listed companies, concentrating on discovering and nurturing high-quality biopharmaceutical firms across the industry’s value chain. This initiative aims to promote strategic listings that optimize resource allocation and encourage innovation.
In terms of fostering patient capital, local organizations such as Guangdong Hengjian Group, Yueke Group, and Yuecai Group, along with regional capital operations platforms, are stepping up their efforts throughout critical segments of the biopharmaceutical industry. They are implementing strategies like equity investments and mergers of biopharmaceutical pipelines, supported by various investment funds, including the Guangdong Strategic Industry Promotion Development Fund and the Guangdong High-Quality Development Fund for Listed Companies. The objective is to create a positive cycle between science and technology and industry while encouraging venture capital and private equity funds to offer targeted support based on the developmental stages of the enterprises, facilitating their accelerated growth.
