Analysis of the Impact of Shenzhen's Foreign Investment Liberalization Policy for the Biomedical Industry on the Guangdong-Hong Kong-Macao Greater Bay Area and A-Shares

Although the complete document of Shenzhen’s foreign investment liberalization policy for the biomedical industry issued by the Shenzhen Municipal Government cannot be directly found due to its recent release date, it aligns with China’s general trend of attracting foreign investment in the biomedical industry [0][1][2]. The policy focuses on three key areas: clinical trials of cell and gene therapy drugs, expansion of Hong Kong-Macao Medicine and Medical Devices Connect, and opening up of genetic diagnosis and treatment technologies. It will promote the upgrading of the investment pattern of the GBA biomedical industry towards high-end and internationalization:

1. Accelerated foreign capital inflow
   : Investment in China’s biomedical industry in the first half of 2025 has exceeded 48 billion US dollars, surpassing the entire year of 2024 [0]. The policy will further attract foreign capital to participate in cutting-edge technology research and development and clinical trials.
2. Deepened integration of Hong Kong and Macao resources
   : The expansion of Hong Kong-Macao Medicine and Medical Devices Connect will promote the connection between innovative drugs in Hong Kong and Macao and the mainland medical system, improving the overall clinical trial and R&D efficiency of GBA.
3. Enhanced industrial chain collaboration
   : As a hub between the mainland and Hong Kong and Macao, Shenzhen will drive the collaborative development of sub-sectors such as CRO/CDMO, genetic testing, and drug distribution within GBA.

1. Policy aligns with global biomedical investment trends
   : In 2025, China’s biomedical asset licensing transactions accounted for nearly 40% of the global total, a significant increase from 3% in 2020 [3]. The policy will consolidate China’s position in the global biomedical field.
2. Significant technology spillover effect
   : The technological advantages of foreign capital in areas such as cell and gene therapy will be transferred to local enterprises in GBA through cooperation, licensing, etc., accelerating industrial technology upgrading.
3. Industry concentration is expected to increase
   : The sub-sectors supported by the policy have high technical thresholds. Enterprises with core technologies and platform advantages will be more likely to obtain foreign cooperation opportunities, and industry concentration is expected to increase.

• Cell and gene therapy field
  : Enterprises related to clinical trial services, CRO/CDMO platforms, and gene editing technology will benefit from foreign cooperation and project growth.
• Hong Kong-Macao Medicine and Medical Devices Connect related
  : Enterprises engaged in imported drug distribution, hospital cooperation platforms, and regulatory consulting services will gain business expansion opportunities.
• Genetic diagnosis and treatment field
  : Enterprises involved in genetic testing, diagnostic equipment, and personalized medical solutions will see demand growth.

• Uncertainty in policy implementation details
  : Specific incentive measures and operation procedures have not yet been clarified, which may affect foreign investment decisions.
• Geopolitical risks
  : Global geopolitical factors may affect cooperation in the biomedical field between China and the United States, etc.

Shenzhen’s foreign investment liberalization policy for the biomedical industry is an important measure for China to attract foreign investment to develop high-end biomedical industry. It will promote the investment pattern of GBA’s biomedical industry towards internationalization and high-end development. In the A-share market, enterprises in sub-sectors such as cell and gene therapy, Hong Kong-Macao Medicine and Medical Devices Connect, and genetic diagnosis are expected to gain development opportunities. However, attention should be paid to the impact of policy implementation details and geopolitical risks on the market.