Citic Securities ( OTCPK:CIIHF ) has overtaken Goldman Sachs ( GS ) as the top investment bank to manage equity issues year-to-date due to a spate of Chinese initial public offerings, according to data compiled by Bloomberg.
It marks the first time since 2009 that the No. 1 spot wasn't held by Goldman or its Wall Street competitors Bank of America ( BAC ), Citigroup ( C ), JPMorgan Chase ( NYSE: JPM ), and Morgan Stanley, Bloomberg News said. The data measure the banks by the volume of equity offerings they managed through Oct. 1, 2022.
During the year, Chinese companies rushed to launch initial public offerings in Hong Kong and Shanghai as U.S. authorities threatened to de-list them from U.S. exchanges over disputes over their access to the Chinese company's financial audits.
Citic worked on $21.3B in global equity offerings, including as lead underwriter and sponsor of CNOOC's ( OTCPK:CEOHF ) 32.3B yuan ($4.5B) Shanghai share sale and for its role in China Tourism Group Duty Free Corp.'s ( OTCPK:CTGDF ) HK$18.4B (US$2.3B) Hong Kong listing, Bloomberg said.
Overall, though, equity issues dropped 66% globally to $326.1B for the first nine months of the year as volatile markets led prospective issuers to hold off on issuing shares to raise capital. Meanwhile, mainland China global share sales fell 10% to $106.8B during the same period, according to the data.
Dealogic data, which ranked banks by their revenue from global equity capital markets as of Sep. 14, 2022, showed JPMorgan ( JPM ) as the biggest global bank for equity capital markets revenue, followed by Citic Securities ( OTCPK:CIIHF ) and Goldman Sachs (GS).
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China's Citic Securities overtakes Goldman as top bank for equity issues in Q3