Suzhou-based Innovent Bio becomes the fourth biotech from mainland China to go public in Hong Kong, and its strong first-day performance may have given the seemingly spooked market so far for such companies a shot of confidence.

A rapidly reforming policy and regulatory environment and a growing culture of innovation are encouraging capital and talent to pour into China, making it a question of when, rather than if, the payoffs will come for both consumers and investors.

The first IPOs to get away under Hong Kong's new relaxed rules for the listing of pre-revenue bioventures have seen mixed performances so far, and observers also have varying views on the likely success of the initiative, although the territory's stock exchange remains bullish as more companies line up to float. 

The market debuts of BeiGene and Ascletis on the new Hong Kong Stock Exchange’s Biotech section could further encourage other Chinese biotech companies as they seek to draw in a wider pool of investors and focus on the promising domestic sector.

Multinationals and M&A deals could be adversely affected by new measures in China that could delay or even block the export of intellectual property out of the country.

The introduction of new listing rules in Hong Kong makes it easier for biotech companies to go public and provides incentives for both China-based and international companies to float there rather than in New York or elsewhere, although some concerns linger.