China Healthcare Services Market: RWA Investment Opportunities

August 2025 | Beijing/Hong Kong

Executive Summary

China's healthcare services market has exceeded RMB 10 trillion in 2025, driven by aging populations, digital transformation, and supportive policies such as "Internet + Healthcare." Real World Assets (RWA) tokenization, which converts healthcare data, diagnostic service revenues, and supply chain assets into blockchain-based tokens, is emerging as an innovative financing tool for SMEs and internet hospitals. Hong Kong serves as a "controlled open" gateway, leveraging the SFC's clear regulatory framework and the RWA registration platform launched in August 2025 to enable compliant access to global capital. Currently, there are approximately 4-6 healthcare RWA projects, spanning innovative drugs, data assets, and in-vitro diagnostics (IVD), with projections to exceed 10 by year-end, unlocking up to USD 5 billion in value. This report provides in-depth analysis for international investment institutions and professional investors, focusing on opportunities, implementation paths, and risk management.

Key Data Overview (Table 1):

Metric	Value (2025)	Projection (2030)	Growth Driver
Overall Healthcare Market	> RMB 10 trillion	RMB 15-20 trillion	Aging population (14% over 65)
Internet Hospitals	RMB 200 billion	RMB 500 billion	Digital policies (e.g., "Internet + Healthcare")
IVD Subsector	USD 18.65 billion	USD 23.81 billion	CAGR 5.01%; localization mandates
Global RWA TVL	USD 23 billion	USD 1.6 trillion	Tokenization trends; China share 10-15%
Healthcare RWA Potential	USD 5 billion	USD 50-100 billion	Data and IP assets

1. Industry Overview: Growth Drivers in China's Healthcare Market

1.1 Market Status

China's healthcare market is valued at over RMB 10 trillion in 2025, with a CAGR of 6-8%. Key subsectors include internet hospitals (RMB 200 billion) and IVD (USD 18.65 billion, projected to reach USD 23.81 billion by 2030). Drivers include:

• Demographic Shifts: 14% of the population is over 65, boosting demand for chronic disease management.

• Policy Support: State Council guidelines on "Internet + Healthcare" and NMPA innovations promote digitalization and localization.

• Technological Advances: AI diagnostics, telemedicine, and blockchain (e.g., RDA models) enhance efficiency.

1.2 Strategic Role of RWA

RWA tokenization addresses high financing costs (8-15% interest rates) and limited investor pools by digitizing assets like data and revenue rights. Globally, RWA TVL stands at USD 23 billion, with China's share at 10-15%. Hong Kong's "same activity, same risk, same regulation" principle and new RWA platform reduce cross-border compliance barriers.

Market Segmentation (Table 2):

Subsector	Key Assets for RWA	Market Size (2025)	RWA Potential
Internet Hospitals	Diagnostic data, service revenues	RMB 200 billion	USD 2-5 billion (data tokenization)
IVD	IP rights, equipment leases	USD 18.65 billion	USD 5 billion (yields and supply chains)
Oncology Services	Tumor patient datasets	RMB 500 billion (subset)	USD 1-3 billion (precision medicine)

2. RWA Investment Opportunities: Core Areas and Potential

2.1 Opportunity Overview

Healthcare RWA focuses on data assets, diagnostic revenues, supply chains, and infrastructure. These enable fragmentation for global investors, reducing costs to 5-7%.

Detailed Opportunities (Table 3):

Opportunity Type	Description	Potential Scale (2025)	Implementation Example
Medical Data RWA	Tokenize patient records (e.g., 100,000 oncology cases with consent)	USD 100-500 million per dataset	Anonymized on-chain; yields for AI/pharma firms
Diagnostic Revenue Rights	Tokenize online testing revenues from internet hospitals	RMB 10-20 billion	Quarterly USDC dividends; smart contract automation
Supply Chain RWA	Tokenize drug/reagent logistics contracts	> RMB 1 trillion (financing)	Stablecoin settlements; reduced cross-border friction
Infrastructure RWA	Tokenize telemedicine equipment or cloud platforms	15% growth in devices	Lease rights fragmentation; IoT data integration

2.2 Case Studies

• Henlius Biotech: Tokenized GLP-1 drug yields, valued over RMB 1 billion, partnered with KuCoin for Q4 testing.

• HuaGene Medical: IVDD stablecoin and IP fund; stock surged 360%, invested HKD 880 million in Ethereum.

• Health Road: Medical data RWA pilot, monetizing billions in value through data sharing.

2.3 Market Potential Quantification

• Scale Forecast: Healthcare RWA TVL could hit USD 5 billion in 2025, 5-10% of global USD 1.6 trillion by 2030.

• Financing Benefits: RWA cuts costs by 3-10%; potential new capital injection: USD 1-2 billion per major project.

3. Investment Analysis Framework

3.1 Asset Screening

Evaluate tokenization potential based on clear ownership, predictable cash flows, and legal enforceability. Use DCF for asset valuation.

3.2 Transaction Methods

Diverse options, with stablecoins dominating 70% of trades:

• Stablecoins (e.g., USDC): Stable pricing, high cross-border efficiency.

• e-CNY: Low-cost, traceable for domestic focus.

• Fiat: High compliance but slower.

Transaction Options (Table 4):

Method	Description	Suitability in Healthcare	Pros	Cons
Stablecoins	USD/HKD-anchored digital coins for purchases/dividends	Drug yields, data sales	Stability, 24/7 liquidity	Regulatory audits required
e-CNY	CBDC for local settlements	Internet hospital revenues	Zero fees, policy-backed	Pilot stage; limited cross-border
Fiat	Bank transfers in RMB/USD	Equipment leases	Institutional acceptance	High fees (1-3%), delays

3.3 Compliance and Technology

• Regulatory Path: Use Hong Kong SPV for STO issuance; SFC licenses (Type 1/7); ODI/QDII for flows; data export assessments.

• Tech Requirements: Ethereum L2 or AntChain; mandatory audits (e.g., CertiK) for privacy/security.

4. Risks and Mitigation Strategies

4.1 Key Risks

• Regulatory: Data privacy laws, forex controls.

• Technical: Smart contract vulnerabilities (2025 losses: USD 14.6 million).

• Market: Fund conservatism; limited pilots.

4.2 Mitigation

• Compliance First: Engage Sino-HK legal teams (e.g., King & Wood Mallesons).

• Tech Safeguards: Third-party audits; phased rollouts.

• Market Entry: Start with small pilots to build case studies.

Risk Matrix (Table 5):

Risk Category	Probability	Impact	Mitigation
Regulatory Non-Compliance	Medium	High	SFC licensing; legal opinions
Technical Failures	Low-Medium	High	CertiK audits; beta testing
Market Adoption	Medium	Medium	Pilot successes (e.g., Henlius)

5. Investment Recommendations

5.1 Investment Opportunities

Prioritize high-potential areas with detailed entry points:

• Tumor Data RWA: Invest in datasets (e.g., 100,000 cases valued USD 10-50 million); high ROI via pharma partnerships; target precision medicine yields of 8-12%.

• Diagnostic Revenues: Focus on internet hospitals; token yields offer 5-10% annual returns; diversify with supply chain integrations.

• Key Firms: Monitor Henlius, HuaGene, Health Road, KingMed, and Dian Diagnostics; their data/supply chains yield 15-20% growth.

5.2 Implementation Recommendations

Detailed steps for investors:

• Team Assembly: Form Sino-HK teams with legal, tech, and finance experts; budget USD 500,000-1 million for due diligence.

• Pilot Investments: Start with USD 5-10 million in small-scale projects (e.g., 5 billion RMB asset threshold); use stablecoins for quick exits.

• Strategic Partnerships: Collaborate with SFC-licensed platforms (e.g., HashKey); aim for 6-12 month pilots to test yields.

• Long-Term Strategy: Build ecosystems with stablecoins (e.g., IVDD models); target 10-15% IRR; monitor NMPA updates for localization edges.

• Exit Planning: Leverage secondary markets on Hong Kong platforms; diversify across 3-5 projects to mitigate risks.

Recommended Portfolio Allocation (Table 6):

Asset Type	Allocation (%)	Expected Return	Risk Level
Data RWA	40%	10-15%	Medium
Revenue Rights	30%	8-12%	Low-Medium
Supply Chain	20%	7-10%	Medium
Infrastructure	10%	5-8%	Low

6. Conclusion

China's healthcare services market offers robust RWA investment opportunities, with internet hospitals, IVD, and data assets as key drivers. Hong Kong's framework and global stablecoin ecosystems (USD 270 billion market) facilitate cross-border entry. With 4-6 current pilots expanding to over 10 by year-end, unlocking USD 5 billion, international investors should seize early advantages for high returns and strategic positioning.

Appendix: Key Data

• Healthcare Market: > RMB 10 trillion (2025); Internet Hospitals: RMB 200 billion; IVD: USD 18.65 billion.

• RWA Market: Global TVL USD 23 billion; China Healthcare RWA: USD 5 billion potential.

• Contact: Recommend engaging SFC-licensed entities or Sino-HK law firms for latest pilot details.