HAO Capital, TCL launch healthcare joint venture

China-focused private equity firm HAO Capital and consumer electronics company TCL Group said on July 10 they will form a joint venture called TCL Healthcare, which will aim to be a leader in China's diagnostic imaging market.

HAO Capital made the investment through SKR, its healthcare investment platform.

“We are optimistic about the investment opportunities in China's medical equipment market, especially imaging diagnostics equipment where there's a clear and high-growth market for quality, locally developed and manufactured equipment,” said Wang Hongqing, a partner and co-founder of HAO Capital.

China is the world's fourth largest medical equipment market with more than 60 billion yuan ($9.50 billion) in sales. Diagnostic imaging equipment represents more than one-third of that figure.

According to HAO Capital, the market is expected to maintain a 20 percent growth rate over the next few years, driven by urbanization, aging population, more social healthcare coverage and increasing healthcare awareness.

Multinational companies accounted for more than 75 percent of the diagnostic imaging market and the percentage is even higher in the high-end segment. Currently, no Chinese medical equipment company has a full product line in diagnostic imaging equipment.