Renowned technological hub Shenzhen is strategically expanding its focus to solidify its position as a leader in healthcare manufacturing. To accelerate this growth, the city government is joining forces with Fosun Pharma, one of China’s biggest pharmaceutical producers, to establish a massive US$700 million healthcare fund.

This 10-year initiative, spearheaded by the Shenzhen Guidance Fund (controlled by the city government), will see Fosun Pharma contribute significantly through its subsidiaries: Fuxin Shenyao, Fosun Pharma (Shenzhen), and Fujian Fund Management. The Guidance Fund itself will match the contributions, bringing the total to 5 billion yuan.

At least 70% of the fund will be directly invested in the biomedical industry, aligning perfectly with Shenzhen’s ambitious plan to become a healthcare manufacturing powerhouse. The city already boasts a thriving biopharmaceutical sector, with 140 major firms, including 11 publicly listed companies and powerhouses generating over 1 billion yuan in revenue. In the first three quarters of 2023 alone, the industry contributed a significant 14 billion yuan to the local economy.

Fosun Pharma’s commitment to Shenzhen goes beyond financial investment. They established their Greater Bay Area headquarters in the city in December 2023, a clear sign of their confidence in its potential. They also acknowledge the city government’s dedication to fostering growth in the biomedicine and general health sectors, citing a series of supportive measures implemented over the past two years. Fosun Pharma itself plans to leverage this supportive environment to increase investments in biomedicine, precision medicine, and related fields.

Fuxin Shenyao, acting as the general partner, will oversee the day-to-day operations of the fund. Their mission is multifaceted: attracting non-local enterprises to invest in Shenzhen’s biomedical landscape, supporting local small and medium-sized enterprises, and navigating the often-complex approval process for clinical drug trials and registrations.

This initiative extends beyond domestic players. Global healthcare companies have also recognized Shenzhen’s potential. A prime example is Siemens Healthineers, which established a base in the city in the early 2000s. In 2023, they announced a significant investment of at least 1 billion yuan to build a new research and production facility – their second in Shenzhen.

Fosun Pharma’s subsidiaries, Fuxin Shenyao, Fujian Fund Management, and Fosun Pharma (Shenzhen) will contribute a combined 1.68 billion yuan to the fund, with Fuxin Shenyao leading the charge with a 20 million yuan investment. The remaining 1 billion yuan will primarily come from additional district governments within Shenzhen, solidifying a collaborative effort to propel the city’s healthcare ambitions forward. This joint venture between Fosun Pharma and the Shenzhen government promises to be a game-changer, fueling innovation and propelling Shenzhen to the forefront of the global biomedical industry.