The Rise of Emerging Forces in Asia: Will Chinese Enterprises Generate More Unicorns and IPO Opportunities?

Over the past year, the explosive growth of U.S. tech stocks—such as NVIDIA—has captured global investors’ attention. In the coming years, however, emerging enterprises across Asia will also shine brightly. About five years ago, when we discussed Asia from an economic perspective, our focus was almost exclusively on China. I believe no country can replace China’s position. Today, however, we see Asia’s business landscape broadening to include parts of Southeast Asia—especially Singapore, Indonesia, and Vietnam—and even Japan. In my view, over the next decade, the majority of unicorns capable of disrupting entire industries will emerge from Asia. I have no doubt about this. I cannot pinpoint exactly where they will originate, but China will undoubtedly account for a substantial share. 1. Current Status of Chinese Companies’ IPOs In 2024, Chinese companies listed in the U.S. saw a relatively high number of IPOs—more than 40 successfully went public. Yet most were small-scale. A deeper analysis reveals that only two or three truly raised substantial capital. The majority of these smaller IPOs raised merely $5–15 million, largely sourced from founders’ friends and family. The current trend is that if a company maintains healthy cash reserves and achieves profitability, it may choose to wait and watch; if funding is urgently needed, it will accept prevailing market terms and proceed with listing. But if financing isn’t urgent, waiting six months could yield a valuation 50% higher than today. Moreover, many small Asian firms opt for modest IPOs precisely because they understand the complexity and time required for listing. They are willing to raise just enough capital to sustain operations for roughly two years, use that period to execute their business plans, and then pursue a second or third round of financing once valuations improve. 2. Future Trajectory of Chinese Enterprises As Asia’s largest economy, what lies ahead for China? I remain consistently optimistic about China. I have worked in China for 25 years, and for the past 15 years, numerous people have told me each year that the Chinese market is about to collapse—yet somehow, our business has grown nearly every year. Looking ahead, many companies that secured venture capital (VC) funding in 2020 and 2021 are now approaching the end of their investment cycles and urgently seek liquidity. Additionally, many private equity (PE) deals in China include ratchet clauses: if the company fails to go public within the stipulated timeframe, management may lose control—or even face forced liquidation. Meanwhile, the China Securities Regulatory Commission (CSRC) currently approves only a limited number of IPOs, placing immense pressure on these enterprises. At the same time, SPACs (Special Purpose Acquisition Companies) that raised funds specifically for mergers and acquisitions involving Chinese companies will also face mounting pressure to complete those transactions.

Building Asia’s Innovation Ecosystem Together! The 2025 Asia Young Scientists Fund Annual Meeting Held at The University of Hong Kong | 2025 Future Science Prize Week

Randy Schekman Professor Randy Schekman—2013 Nobel Laureate in Physiology or Medicine, Professor at the University of California, Berkeley, and Investigator at the Howard Hughes Medical Institute—delivered a keynote speech titled “Public Education and Cultivating the Next Generation of Scientists,” followed by a Q&A session. He emphasized that public education forms the cornerstone of scientific talent development, playing a vital role in sparking adolescents’ interest in science and nurturing future research leaders. Reflecting on his own path to science, he underscored how early science education played a pivotal role. Professor Schekman stressed the importance of intergenerational knowledge transmission: scientific progress depends on successive generations passing the torch, and senior scientists should actively engage in science education to impart their experience and wisdom to younger researchers. During the Q&A, he further noted that science education must prioritize cultivating scientific thinking and innovation capacity—encouraging young people to maintain curiosity, dare to explore, and collaborate proactively with others. Cross-Sector Dialogue: Building Asia’s Research and Innovation Ecosystem Professor Kui-Yi Ma, Vice-President (Research and Innovation) of the University of Hong Kong and Vice-President of the Hong Kong Academy of Sciences, moderated a panel discussion on “Building Asia’s Research and Innovation Ecosystem,” bringing together representatives from academia, industry, and capital to jointly explore pathways for collaboration. Professor Kwong-Tin Cheng, Chair of the 2025 Steering Committee of the Asia Young Scientists Fund (AYSF), pointed out during the discussion that while traditional disciplines have yielded abundant research outcomes, interdisciplinary integration and convergence present numerous new opportunities—yet knowledge silos persist, requiring further expansion to catalyze innovation. Young scientists across Asia possess tremendous potential and constitute a critical driving force for advancing scientific research. The AYSF project must serve as a platform to foster cross-disciplinary communication and collaboration among young scientists, stimulating innovative thinking. Moreover, translating research outcomes into real-world impact is crucial for society; the project must guide young scientists to value practical application, strengthen ties with industry, and accelerate the commercialization of research results—thereby injecting fresh impetus into technological innovation and socioeconomic development across Asia. H.E. Ambassador Jirohara, Chairman and CEO of DEFTA Partners Group, observed that open innovation exemplifies cross-disciplinary exchange: it inspires talent from diverse fields to spark mutual insights, contribute collective wisdom to solving complex challenges, and promote knowledge integration and breakthrough innovation. Yet he cautioned that open innovation entails challenges and risks; stakeholders must carefully assess its implications, weigh pros and cons thoughtfully, and make decisions aligned with their long-term strategic development. Professor Winston Teng-Hui Hong, Member of the 2025 Life Sciences Selection Committee of the Asia Young Scientists Fund, Chief Business Development Officer of the Biomedical Research Council (BMRC) under Singapore’s Agency for Science, Technology and Research (A*STAR), and Professor and Research Director at the Institute of Molecular and Cell Biology (IMCB), noted that Singapore’s research capacity was weak thirty years ago—but through government commitment to building a coherent research system and model, remarkable progress has been achieved in healthcare and other fields over two to three decades. Culturally, researchers must commit to giving back to society by developing practical technologies. Policy frameworks and administrative processes must also support commercialization by research institutions—integrating research objectives with commercial interests. He believes constructing an ecosystem backed by market demand and financial resources is essential; such a multifaceted system plays a decisive role in enabling successful technology transfer.

Editorial: The Innovative Molecules Emerging from Asia

2 days ago

According to Vision Lifesciences, roughly half of major drug development deals this year involve Chinese biotech partners due to innovative molecule discoveries. This trend was discussed at the ANVF Innovation 2026 conference in Singapore.

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2026-10-16

Editorial: The Innovative Molecules Emerging from Asia

Editorial: The Innovative Molecules Emerging from Asia

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