Value paradigm shifts as investors seek new philosophy in stocks

"Is it over or not?"

Hong Kong made it to the world headlines days before Financial Secretary Paul Chan Mo-po unveiled the 2024-25 Budget on Feb 28, as investors pondered what the future might hold amid the uncertainties triggered by the "turbulent" geopolitical and macroeconomic climate.

Money speaks louder than words, with investors and stakeholders alike shifting their focus to funds in their new investment thinking.

The current administration's second budget set aside about HK$10 billion ($1.28 billion) for a program aimed at supporting the development of life and health technology, artificial intelligence and data science, new-energy technology and advanced manufacturing. A further HK$2 billion has been allocated for research in a new health tech hub.

The special administrative region government's moves have boosted morale in the burgeoning life sciences sector and cheered up professional investors who have set their sights on winning big by spotting the shrouded opportunities in tough times.

One such investor is Da Liu — a former pharmacist and managing director of CR-CP Life Science Fund — who has the serendipity to discover a "gold mine" in life sciences. As the Hong Kong stock market gradually slips into a prolonged bear market that has seen about HK$30 billion in stocks value wiped out in the past three three years, Liu spends most of his time rubbing shoulders with universities, industry entrepreneurs, scientists, private investors, fund managers, and decision-makers of State-owned enterprises in Hong Kong, Beijing and Singapore to promote the life sciences ecosystem among stakeholders.

"Although spotting lucrative unicorns and creating an IPO miracle under the Hong Kong Stock Exchange's Chapter 18A list (which allows biotech companies with no revenue or profits to be listed on the bourse's main board) may sound too good to be true, this is exactly what high-tech should be able to bring to the modern era," he says.