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Investment

Private firms overtake SOEs as banks' biggest IPO clients

For the first time, investment banks in China have raised more money from assisting with private sector IPOs than state-owned enterprise IPOs, Financial Times reported, citing Credit Suisse. Just a third of banks’ fees from equity-raising this year have come from state-owned companies, compared with more than half in 2013, and an average of two-thirds during the boom years of Chinese listings between 2005 and 2010. The swing is a sign of the state-owned sector’s interest in broadening its funding options beyond raising equity, as well as its decreased interest in pursuing listings since Beijing signalled plans to reform the sector.

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