Shares in China’s biggest online health care platform have risen 40% in their Hong Kong stock market debut, reflecting investor enthusiasm for the fledgling industry as the country emerges from the coronavirus pandemic
BEIJING — Shares in China’s biggest online health care platform rose 40% in their Hong Kong stock market debut Tuesday, reflecting investor enthusiasm for the fledgling industry as the country emerges from the coronavirus pandemic.
JD Health, an arm of JD.Com Inc., China’s biggest online retailer, sells medications, hospital care packages and online consulting by doctors.
Chinese internet companies increasingly offer health services in a society where hospitals are crowded and distribution of drugs and medical supplies outside major cities is uneven. Online consulting with Chinese-speaking physicians is popular with families from China who live in the West or other developing countries.
JD Health’s Chinese competitors include e-commerce giant Alibaba Group’s Alibaba Health; Baidu Health, run by search giant Baidu.com Inc., and WeDoctor, run by Tencent Holding, operator of the popular WeChat messaging service.
The coronavirus pandemic has boosted demand for Chinese online platforms.
Patients switched from using them mostly for urgent care to staying in touch with doctors about chronic conditions, according to industry analyst Kevin Chang of Bain & Co.
“This new pattern of digital engagements is likely to continue and to increase the frequency of consultations, deepening the doctor-patient relationship,” Chang said in a report.
China, where the pandemic began in December, declared the disease under control in March and eased most controls on travel and business. Restrictions on travelers coming from abroad still are in place and visitors to public buildings are checked for fever. But consumer spending and most other activity have rebounded to above pre-pandemic levels.
JD Health raised about $3.8 billion by selling 20% of the company to public shareholders.
It was Hong Kong’s second-biggest stock offering this year behind parent JD.Com, which has shares traded in New York and raised $4.5 billion in June when it joined the Hong Kong exchange.
The ruling Communist Party says it plans to encourage use of online health services as a way to reduce the burden on hospitals.
JD Health said it plans to expand its online pharmacy business and invest in developing “smart healthcare solutions” supported by artificial intelligence to work with physicians.
The company says it had 72.5 million active users in June, up 30% over a year earlier.
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JD Health (in Chinese): https://jiankang.jd.com