China financial ECM deals set for strongest year since 2010

By Elzio Barreto HONG KONG, March 13 (Reuters) – Chinese banks, brokerages and insurers plan to raise at least $30 billion in new funds through equity offerings in the coming months, which would make 2015 the most active year for the financial services sector since 2010.

The year started with a bang, with more than $6 billion of equity deals in less than three months, including a $3.9 billion private placement by China’s second-largest brokerage Haitong Securities and the $1.6 billion Shanghai initial public offering of Orient Securities, Thomson Reuters data shows.

Chinese banks and insurers are raising funds to strengthen their balance sheets and meet new capital adequacy rules, while brokerages are tapping the capital markets to expand their profitable margin financing and other lending businesses. The capital-raising, in turn, would be a boon for investment banks targeting Hong Kong and China equity deals for the bulk of their fee revenues in the Asia-Pacific region.

 

Curated from China financial ECM deals set for strongest year since 2010