Ritter Group Eyes Healthcare Investments In China
The high cost and poor availability of health services have been among the loudest complaints of the Chinese.
- (1888PressRelease) April 12, 2011 - Ritter Group has learned that the Chinese government urges private investment in healthcare. China's central government wants to encourage private investment to meet the country's increasing demand for health care. Preferential treatment will be given to private equity investments participating in restructuring government hospitals.
The high cost and poor availability of health services have been among the loudest complaints of the Chinese. In response to the global economic crisis, the Chinese government implemented a stimulus plan that required domestic banks to aggressively increase their loan portfolios. The result was a significant expansion in new lending: growing from four trillion RMB in 2008 to more than nine and a half trillion in 2009.
Ritter Group believes that the development in the health care industry is expected to come from several sources including the aging of the Chinese population, increasing government subsidies and initiatives meant to improve health care nationwide, and the continued reliance on OTC medications as cheap substitutes for expensive or unavailable healthcare normally done in clinics. The resulting expansion is expected to grow the industry from 995 billion RMB in 2010 to 1.8 trillion in 2015 for a growth of 81%.
Recent transactions include two by domestic fund Jiuding Capital; with a 110 million RMB investment in April of a Shanxi based pharmaceutical company, and a 34 million RMB investment a month earlier in medical researcher Qili Pharmaceutical. Successful exits include the public offering in April of a Chinese pharmaceutical manufacturer invested in by a Goldman Sachs led consortium, as well as an IPO in December of last year by Chinese medical imaging company Concord Medical Services Holdings who counted a Carlyle & CICC led consortium as early investors.
Premier Wen Jiabao promised to "support the use of non-government capital to run medical and healthcare institutions." This was seen as a signal for creating a more open medical market.
About Ritter Group:
Ritter Group is a premier provider of seed and early stage venture capital for innovative companies. Ritter Group works tirelessly to be the best across a global market and global technology areas including Biotechnology, Clean-tech, Information technology, Telecommunications, Diagnostic technology and Medical technology. Ritter Group provides unparalleled help and trusted advice across key aspects of company building including strategy, recruiting and business development.
Press Contact:
Barbara Gould, Ritter Group Media Coordinator, press ( @ ) rittergroup dot com
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