Health Care & Life Sciences: The Evolution of China’s Next Big Market

“The greatest wealth is health.” —Virgil

August 13, 2017

China’s economic growth rate may have slowed, but its healthcare sector is ramping up. While total GDP grew by 7.7% over the past five years, spending on healthcare grew at nearly double the rate over the same period. That momentum is expected to propel China’s healthcare market from US$640 billion in 2015 to more than US$1.1 trillion by 2020. More important than the headline numbers, the growth of spending on healthcare in China reflects a profound structural transformation of the economy. With the country’s aging population, evolving disease profile, newfound wealth and new sources of innovation, healthcare is on the verge of becoming China’s next big market similar to internet technology ten years ago.

Like the tech boom, private equity and venture capital investors have a central role to play in the healthcare market’s development. Whether seeding the industry champions who will soon define China’s nascent healthcare landscape or back the cutting-edge startups to be acquired by them, savvy investors have already seen many opportunities to put capital to work. StepStone has written this report to help investors understand the significance of China’s healthcare industry, the speed of its development and strategies for gaining exposure to the country’s next wave of growth.

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