Hong Kong’s proprietary Chinese medicine (pCm) industry is being encouraged to expand on the Chinese mainland and in Southeast Asia, the Hong Kong Trade Development Council said in its latest report on Thursday.

The report titled, Challenges and Opportunities in Hong Kong’s Proprietary Chinese Medicine Industry, said Hong Kong’s pCm exports totaled HK$2.88 billion ($366.89 million) in 2024, with 93 percent of that produced locally.

The largest export market is the Chinese mainland, the world’s largest pCm market valued at 450 billion yuan ($62.88 billion). The market accounts for over 70 percent of Hong Kong’s total pCm exports, followed by Macao and the Association of Southeast Asian Nations.

At present, 264 enterprises are listed as local pCm manufacturers in the city, and approximately 2,000 companies are involved in pCm and Chinese herbal medicines-related businesses.

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Wing Chu, principal economist of the HKTDC’s Greater China research team, said, “Hong Kong’s pCms are highly regarded in Southern China and overseas Chinese communities.”

In January, the National Medical Products Administration simplified the approval process for traditional pCms for oral use, provided they have been in use in Hong Kong for more than 15 years and whose production processes comply with Good Manufacturing Practice requirements.

Application materials and technical requirements were also simplified in April.

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The report notes that implementation of the streamlined registration procedures makes it easier for Hong Kong companies to expand on the Chinese mainland.

“Streamlined approval procedures on the Chinese mainland for traditional pCms of Hong Kong and Macao offer significant opportunities for Hong Kong businesses to expand into the Guangdong-Hong Kong-Macao Greater Bay Area and other provinces,” the report said. Because of that, many local pCm enterprises hope to expand on the mainland, Wing added.

The report stated that many Southeast Asian countries have specific, similar legal requirements for pCms. This offers a clear pathway for local pCms enterprises to enter these markets.

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In addition, the rapid growth of global e-commerce has created new sales channels for Hong Kong’s pCms, the report shows.

Some pCms for external use, such as Chinese medicinal wines and cooling oils, have been incorporated in the Cross-border E-commerce Retail Import Commodity List, allowing products to be sold to the Chinese mainland through e-commerce channels.

Meanwhile, fueled by robust demand for herbal and health-related products in ASEAN countries, the local e-commerce retail sector is experiencing significant growth, providing additional opportunities for Hong Kong’s pCms companies.

To bolster the development of the local pCm industry, the International Conference of the Modernization of Chinese Medicine and Health Products will be held at the Hong Kong Convention and Exhibition Center on Aug 15 and 16.

Contact the writer at thor_wu@chinadailyhk.com