Guangzhou HuanDong Plaza Launches 'Venture Capital Lounge' to Propel Biopharmaceutical Industry Growth

In 2021, Guangdong Province proposed the creation of a trillion-yuan biopharmaceutical and health industrial cluster during the 14th Five-Year Plan period, aiming to establish an industrial hub with international influence. In May 2022, the national government issued the “14th Five-Year Plan for Bioeconomy Development,” marking the introduction of China’s first top-level design in the field of bioeconomy and signaling the country’s formal entry into a new era of bioeconomy.

On September 6, under the guidance of the Guangzhou Municipal Science and Technology Bureau and the Management Committee of Huanghuagang Science and Technology Park in Guangzhou High-Tech Industrial Development Zone, the first session of the “Huandong Plaza • Venture Capital Living Room” themed “Health Era: Sci-Tech Innovation Empowerment” investment and financing roadshow was successfully held at Zhushi Tongchuang • Huandong Plaza. The event was jointly organized by Guangzhou Bioengineering Center Co., Ltd. and Guangzhou Pearl River Development Group Co., Ltd., with special support from multiple enterprises, investment and financing institutions, media organizations, and other partners.

This event was designed to provide precise services to high-tech enterprises in the biopharmaceutical sector, integrating core resources such as “projects, capital, business, and markets.” It aims to enhance R&D capabilities, accelerate the commercialization of scientific achievements, and promote industrial upgrading, thereby enabling the biopharmaceutical industry to continue serving as a critical line of defense in the fight against pandemics. Under government guidance and with state-owned enterprises facilitating the platform, the event delivered high-quality, efficient financial services to the real economy, fostering the integrated development and synergistic efforts of the innovation chain, industrial chain, capital chain, and policy chain. The event attracted eight biopharmaceutical companies for roadshows, numerous other biopharmaceutical attendees, as well as investment and financing institutions, banks, and securities firms, creating a vibrant and engaging atmosphere.

Liu Quanbao, Second-Level Inspector of the Guangzhou Municipal Science and Technology Bureau; Chen Xi, Deputy District Mayor of the Yuexiu District People’s Government of Guangzhou; Wu Xiang, Deputy General Manager of Guangzhou Pearl River Industrial Group Co., Ltd. (the organizing entity); Zhang Yan, Chairman of Guangzhou Pearl River Development Group Co., Ltd.; Huang Liqiang and Xie Junfeng, Deputy General Managers of Guangzhou Bioengineering Center Co., Ltd.; and Huang Shangbin, Deputy General Manager of Tongchuanghui Operation Management Co., Ltd., attended the event.

We must contain the epidemic, stabilize the economy, and ensure safe development. Liu Quanbao, a Level II Inspector at the Guangzhou Municipal Science and Technology Bureau, pointed out that Guangzhou is committed to establishing enterprises as the main entities of innovation and stimulating the linking and catalytic roles of financial capital. Meanwhile, the city has issued and implemented the Several Provisions of Guangzhou Municipality on Accelerating the Development of the Biopharmaceutical Industry, providing total funding support of RMB 466 million. This injects strong momentum into the high-quality development of the biopharmaceutical and health industries, propelling Guangzhou’s transformation from a city with abundant scientific research resources into a powerhouse of technological innovation.

Impacted by the global COVID-19 pandemic, the biopharmaceutical industry has continued to attract significant attention from capital markets. As a key player in the global development of biopharmaceuticals, China has successfully navigated the changes and shocks brought about by the pandemic. The overall scale of financing and investment in the biopharmaceutical sector has shown an accelerating upward trend, with increasing integration between the industry’s capital markets and the real economy. Biopharmaceuticals have become one of the hottest investment directions.

Currently, as a key national central city and the core engine for regional development in the Guangdong-Hong Kong-Macao Greater Bay Area, Guangzhou is focusing on innovation, development, and integration in the pharmaceutical and healthcare sectors. The city aims to attract global pharmaceutical innovation resources to converge in Guangzhou, promote the innovative development of its general health industry, and establish itself as a leading hub for biomedical innovation and a globally influential center for the biopharmaceutical industry.

Guangzhou’s biomedical industry is experiencing rapid development, with its scale expanding by over 10% annually and continuous enhancements in innovation. In 2021, Guangzhou saw 116 new drug clinical trial applications, with 106 clinical trial approvals granted, representing a year-on-year increase of 85.96%. The number of first-time registrations for Class II medical devices reached 362, among which the number of new product registrations in the in vitro diagnostics (IVD) sector ranked among the top three nationwide.

Currently, Guangzhou has gathered more than 6,000 biopharmaceutical companies, ranking third in China, with innovative enterprises continuously emerging. Meanwhile, Guangzhou is accelerating the aggregation of innovative resources in the biopharmaceutical sector. As of the end of 2021, Guangzhou was home to 14 higher education institutions related to the biopharmaceutical field, 6 national key laboratories, 94 provincial-level key laboratories, 109 municipal-level key laboratories, and 22 new-type R&D institutions in the biopharmaceutical sector. For example, Guangzhou Xique Pharmaceutical Co., Ltd., a company participating in this roadshow, specializes in the research and development of innovative therapeutic drugs for cardiovascular and cerebrovascular diseases and mitochondrial dysfunction. Guangzhou Kunyuan Fangqing Medical Technology Co., Ltd. and Guangzhou Lemeng Biotechnology Co., Ltd. were both established in 2018.

Currently, as one of Guangzhou’s three emerging pillar industries, the biopharmaceutical and health industry features a comprehensive value chain spanning upstream R&D and testing, midstream pilot-scale production, downstream commercialization, and industrial services such as CROs and CDMOs. The clustering effect of the biopharmaceutical sector is beginning to take shape, positioning Guangzhou to emerge as a world-class hub for the biopharmaceutical industry.

Leverage locational advantages to cultivate a fertile environment for the development of the biopharmaceutical industry. In recent years, Guangzhou has continuously improved its spatial layout for the biopharmaceutical sector, with innovation hubs such as the Guangzhou Guangdong-Hong Kong-Macao Greater Bay Area (Yuexiu) Life and Health Industry Innovation Zone demonstrating steadily enhanced industrial service capabilities.

According to the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, Guangzhou is positioned as the healthcare and medical center of the Bay Area. As the hub of Guangzhou’s medical resources, Yuexiu District will focus on constructing an industrial spatial layout characterized by “One Core, One Ring”—comprising a core medical zone in the Greater Bay Area and an international life health industry ring. It aims to enhance high-end supporting facilities that integrate medical care, elderly care, and wellness, striving to build an international healthcare and medical center, a highland for biomedical technology, a global hub for new drug clinical trials, and a talent highland for high-end life health professionals, thereby achieving an industrial scale of RMB 100 billion.

Taking Initiative to Empower Industrial Development: State-Owned Enterprises Drive GrowthGuangzhou Bioengineering Center Co., Ltd., one of the organizers of the roadshow, stated that as a wholly-owned subsidiary of Guangzhou Financial Holdings Group Co., Ltd., the company will leverage the group’s financial resources. Building on its extensive experience in providing sci-tech finance investment and financing services, as well as facilitating the commercialization of scientific and technological innovations within the life and health sector, the company will join forces with various stakeholders to establish a specialized investment and service platform for the life and health industry in the Guangdong-Hong Kong-Macao Greater Bay Area. By delivering comprehensive, end-to-end services across the entire business lifecycle, the platform aims to support the innovative development of the regional biopharmaceutical industry.

As the “main venue” for this venture capital matchmaking event, Huandong Plaza is not only a key exemplar of Guangzhou’s revitalization as an old city with new vitality, but also a strategic component in Yuexiu District’s broader layout for the biomedical industry. Originally built in 1986, Huandong Plaza was formerly known as the “Guangzhou Jiafu International Hotel” and was once the tallest building in the Shizhuang area of Guangzhou. In January 2020, with the full support and guidance of Zhujiang Industrial Group, Pearl River Holdings took over the project entirely and partnered with Tongchuang Group, which has extensive experience in renovating and operating existing properties. Through meticulous, small-scale renovations akin to “embroidery-like precision,” the property has been transformed into a central urban technology and health complex, with plans to introduce leading domestic and international enterprises in high-end healthcare, elderly care, and modern traditional Chinese medicine. The Huandong Plaza project was also selected for the 2021 Guangzhou Award for Quality Improvement and Efficiency Enhancement in Industrial Parks.

As one of the organizers and the project owner, Zhang Yan, Chairman of Guangzhou Pearl River Development Group Co., Ltd., stated that in the next phase, Pearl River Holdings will leverage Huandong Plaza as a carrier to promote the platformization and branding of the “Huandong Plaza • Venture Capital Living Room” series of events, striving to enhance its scale, influence, and visibility. The company aims to become a service provider and enabler within the sci-tech innovation “ecosystem,” contributing state-owned enterprise strength to Guangzhou’s biomedical industry.

This event built a bridge between projects and capital, enabling seamless alignment of supply and demand. Focusing on the development and needs of leading industry enterprises and leveraging the resources of sci-tech finance, it gathered top-tier investment and financing institutions to precisely address the diverse needs of companies on-site. It attracted prominent investors such as Guangzhou Industrial Investment Capital, Guangzhou Financial Holdings Fund, GPCapital, Yanghe Investment, Mifang Capital, and Daan Gene, all seeking high-quality projects. To help companies overcome financing challenges for capacity expansion, dedicated matchmaking sub-venues were set up, with active participation from institutions including Bank of China, China Merchants Bank, Shanghai Pudong Development Bank, Industrial Bank, CITIC Securities, GF Securities, and Haitong Securities.

Following the roadshow, investment and financing institutions conducted in-depth due diligence and engaged in extensive discussions regarding the projects. Representatives from these institutions remarked that, amid the severe and complex landscape of the COVID-19 pandemic, it is highly commendable to witness numerous technology enterprises maintaining their momentum, continuously iterating and upgrading their offerings, and sustaining a strong commitment to research and development innovation.