CCB is to launch hedge fund in healthcare

The investment banking arm of China Construction Bank plans to launch a 5 billion yuan ($731.3 million) fund to focus on investments in the country's rapidly growing healthcare sector, state media reported on Tuesday.

According to the official Xinhua News Agency report, Hong Kong-based CCB International is leading the fundraising but has not yet reached the initial target of 5 billion yuan. Once launched, the fund would focus on investments in healthcare-related sectors including pharmacy, medical equipment manufacturing, medical institutions and services. The fund, to be called China Healthcare Investment Fund, would be the first domestic investment fund specialising in investments in China's heathcare industry.

With China's economic growth and aging population, healthcare investments have become a priority of the government. Besides, China's economic boom has resulted in stark health inequity between its urban and rural populations, and health experts have urged the Chinese government to work harder at improving healthcare options for China's rural population. Beijing is reforming its medical and pension system in an effort to bridge this gap between the poor and rich.

In the market, many global private capital investors have already invested large sums in Chinese medical firms in hopes of making hefty profits, and some of them, such as Mindray Medical International Ltd, have successfully listed or expanded abroad.