A New Frontier for Biotech: Why Hong Kong Is Gaining Ground on Wall Street

The conventional wisdom about biotechnology listings has long held that U.S. markets are the gold standard, offering deeper capital pools and higher valuations than their foreign counterparts. However, a growing trend suggests this narrative is no longer universally true.

Axiom Biosciences’ decision to list in Hong Kong before its secondary listing on Wall Street marks a significant shift in the biotech landscape. Remo Moomiaie-Qajar, founder and CEO of Axiom, believes Hong Kong’s stricter listing standards are an asset for his company, allowing it to tap into sophisticated investors with a deeper understanding of biotechnology. This contrasts with the more permissive approach taken by some U.S. exchanges, where companies like Theranos have been known to prioritize hype over substance.

Hong Kong’s growing reputation as a hub for life sciences investment is driving this change. The Hang Seng Biotech Index has surged by over 75% since January 2025, outpacing its U.S.-listed counterparts in the ICE Biotechnology Index and Nasdaq Biotechnology Index. Reforms introduced last year streamlined the IPO process, contributing to this success.

Danny Xiang, founding partner at Fontus Capital, notes that Hong Kong’s biopharma investor base is increasingly attractive to global companies due to its proximity to Chinese pharmaceutical partners. However, he also points out that local investors tend to favor assets with a clear China connection, which may pose challenges for Axiom in securing backing from this segment.

Despite these nuances, the trend towards listing in Hong Kong is unmistakable. Since 2018, at least 86 companies have listed in the city, raising over $17.8 billion in the process. This influx of capital has been driven by Beijing’s long-term commitment to biotechnology, which has seen significant investment in basic research, drug regulation, and talent acquisition.

China’s progress in this field is undeniable, with advances in areas such as genomics, biologics, and drug development facilitated by factors like lower labor costs, access to large datasets, and targeted uses of AI. However, a survey found that despite leading in clinical development and supply chains, China still lags behind the U.S. in terms of biomedical science quality, commercial reach, and cutting-edge strength.

Axiom’s decision to co-develop a therapy with South Korean firm Medinno for severe brain injuries is a prime example of this collaboration. By partnering with companies like Medinno, Axiom can tap into Asia’s burgeoning life sciences ecosystem, leveraging its resources and expertise to accelerate clinical trials and bring innovative treatments to market more quickly.

As the U.S.-China rivalry in biotechnology continues to intensify, Axiom’s decision to list in Hong Kong sends a clear signal that the conventional wisdom about Wall Street may no longer apply. With China closing in on the U.S. in areas like biopharmaceutical innovation and President Trump’s announcement of tariffs on imported generic drugs adding further complexity to the landscape, it will be fascinating to watch how Axiom navigates this challenging environment.

In a world where the boundaries between East and West are increasingly blurred, companies like Axiom must adapt quickly to remain competitive. By embracing the unique advantages offered by Hong Kong’s biotech ecosystem, Axiom is poised to make its mark on the global stage – and perhaps even change the game for Wall Street in the process.

The stakes are high, but one thing is clear: the future of biotechnology has never been more exciting – or uncertain. As the players jockey for position, Hong Kong’s growing influence in the global biotech arena becomes increasingly evident.