The value of the Chinese yuan was reduced against the US dollar three
time last week—on three successive days—by China’s central bank, the
People’s Bank of China. US stocks fell sharply when the first reduction
was effected on August 11.
The primary reason for the fall was concern that the Chinese economy is slowing down more than expected even by Chinese authorities.
But, is America resuming its economic leadership of the world in the late days of the Obama presidency?
China appears to be in retreat for now — its currency, the yuan, is taking a tumble and in the process causing ructions across Asia. So, while US VCs and investors sit on the side lines, China investors are finding ways to get their investments into the US. The perception is that the US is poised to resume its economic leadership. The ultra rich in China are counting on US development and the appreciation for their investments in the US.
Recently, one of the medical device provider of advanced proton therapy systems, announced that it has entered into an investment agreement with a China firm where up to $200 million will be invested to accelerate its development of its technology. Chinese investors are finding ways to invest in technology companies in the US. They are betting on young medical technology companies working on chronic diseases like obesity, cardiovascular disease, diabetes, orthopedic sector. $6 billion – that is the amount of money that Chinese companies have committed to investing in U.S. technology firms in the first quarter of this year, according to a report this month by the Asia Society and Rhodium Group. This was no small jump, given that the peak annual transaction value in this category in the past eight years was only $1.5 billion.
We know that Chinese investment in U.S. technology isn’t news, but is Chinese investment in American med device start-ups a recent phenomenon?It’s kind of step-by-step. the investor first tries to buy a house, as usual. Then he buys commercial real estate, strip mall, golf courses, shopping centers. Then he starts to think about start-up companies that he can partner with and improve his business in China, or just for financial return.
China's spending on healthcare has increased 40%, this means a sharp rise in use of medical devices made in the US. Medical products made in China or anywhere in Asia are less desirable, than the ones designed and made in the US. Thanks to the Apple product phenomenon. Chinese consumer believes in the quality of US made product, particularly when it comes to healthcare.
The aging Chinese population is concerned about obesity and aging related problems. They are open to get surgical treatments for obesity, plastic surgery, dentistry, women's health, weight loss treatments drugs or devices.
Chinese investors are now competing with the US- VCs and institutional investors. For them the next step is to go beyond biotech and pharma, they are eying on the med device boom on wall street in the form of IPOs. They believe the life science sector is not done yet, the med device and diagnostic sector is very much untapped. Experts believe that the recent surge of med device IPOs is an indicator of more IPOs in 2016 -2017 leading to more M&A transactions, higher valuations and takeouts. U.S. life science start-ups have always been in the leading position in innovation, delivering the next generation of technology and business models, so it’s natural for Chinese investors and companies to look there.
The primary reason for the fall was concern that the Chinese economy is slowing down more than expected even by Chinese authorities.
But, is America resuming its economic leadership of the world in the late days of the Obama presidency?
China appears to be in retreat for now — its currency, the yuan, is taking a tumble and in the process causing ructions across Asia. So, while US VCs and investors sit on the side lines, China investors are finding ways to get their investments into the US. The perception is that the US is poised to resume its economic leadership. The ultra rich in China are counting on US development and the appreciation for their investments in the US.
Recently, one of the medical device provider of advanced proton therapy systems, announced that it has entered into an investment agreement with a China firm where up to $200 million will be invested to accelerate its development of its technology. Chinese investors are finding ways to invest in technology companies in the US. They are betting on young medical technology companies working on chronic diseases like obesity, cardiovascular disease, diabetes, orthopedic sector. $6 billion – that is the amount of money that Chinese companies have committed to investing in U.S. technology firms in the first quarter of this year, according to a report this month by the Asia Society and Rhodium Group. This was no small jump, given that the peak annual transaction value in this category in the past eight years was only $1.5 billion.
We know that Chinese investment in U.S. technology isn’t news, but is Chinese investment in American med device start-ups a recent phenomenon?It’s kind of step-by-step. the investor first tries to buy a house, as usual. Then he buys commercial real estate, strip mall, golf courses, shopping centers. Then he starts to think about start-up companies that he can partner with and improve his business in China, or just for financial return.
China's spending on healthcare has increased 40%, this means a sharp rise in use of medical devices made in the US. Medical products made in China or anywhere in Asia are less desirable, than the ones designed and made in the US. Thanks to the Apple product phenomenon. Chinese consumer believes in the quality of US made product, particularly when it comes to healthcare.
The aging Chinese population is concerned about obesity and aging related problems. They are open to get surgical treatments for obesity, plastic surgery, dentistry, women's health, weight loss treatments drugs or devices.
Chinese investors are now competing with the US- VCs and institutional investors. For them the next step is to go beyond biotech and pharma, they are eying on the med device boom on wall street in the form of IPOs. They believe the life science sector is not done yet, the med device and diagnostic sector is very much untapped. Experts believe that the recent surge of med device IPOs is an indicator of more IPOs in 2016 -2017 leading to more M&A transactions, higher valuations and takeouts. U.S. life science start-ups have always been in the leading position in innovation, delivering the next generation of technology and business models, so it’s natural for Chinese investors and companies to look there.
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