The Chinese market has become Wall Street Investment Bank Waterloo, forcing them to re -evaluate the prospects of Hong Kong investment banking business.
The Wall Street Journal reported that in the past ten years, European and American investment banks have achieved prosperity in Hong Kong. They have helped hundreds of Chinese companies raise funds through the sale of stocks and bonds in the international market.During the Chinese economic prosperity before the crown disease epidemic, these investment banks also earned profits from cross -border acquisition and investment consulting business.Even with the increasingly intensified situation of China and the United States, this "money -making train" has prompted Wall Street to be advocates encouraging the United States to contact China more.
Reported that this day has become the past.The amount of high -yield US dollar bonds of Chinese companies has dropped to zero. For the first time in Hong Kong's public offering (IPO) market, Hong Kong's long -term decline in the Hong Kong stock market has also suppressed other transaction activities.The benchmark Hang Seng Index has fallen by 10%this year.
This year, the cost income earned by investment banks from Chinese companies in the region outside China, which may drop to the lowest level in at least ten years.For the industry, it was already bad in 2022.The investment banks admitted privately that there is no transition at all.Many large international investors are no longer willing to buy Chinese stocks or bonds, and the tightening of China's economic slowdown and supervision has caused many domestic companies to feel pressure.
According to the calculation of the financial market analysis platform, Dealogic, this year's investment bank has received only 539 million US dollars (below, about S $ 730 million) in transactions with Chinese companies and non -RMB currency pricing transactions this year.EssenceMost Chinese companies' financing overseas is held in US dollars or Hong Kong dollars; Hong Kong dollars adopt a exchange rate system that follows the US dollar.
In 2020, the Hong Kong IPO activities were very lively. Many Chinese companies issued US dollar bonds. According to DEALOGIC data, the transaction consultant received approximately US $ 3.75 billion in expenses that year.
The Wall Street Journal quoted people familiar with the matter and revealed that banks including Citi Group, Goldman Sachs Group and Morgan Stanley have collectively fired dozens of investment banking business personnel engaged in China transactions.These banks are also layoffs worldwide, but the US market has performed well, and in recent months, it has shown that IPO activities have risen.
It is reported that some reasons for the decline in China's transaction activities are periodic, but some reasons may be persistent.US high interest rates have reduced the attraction of high -risk investment including Chinese stocks.China's economic expansion momentum is slowing, which will affect the growth prospects of many companies.Chinese regulatory agencies have also increased the difficulty of listed companies at home and abroad.
