Goldman ranks top in China
Goldman Sachs is set to pass the half-way point of the year as the top investment bank in China and Hong Kong, and its position could be strengthened further if it is named as one of the lead underwriters on the $10bn (€7.2bn) public offering of an Asian life insurer this week.
The US banking giant has already earned $81m in fees in the Greater China region this year, 23% more than at this 12 months ago, according to data provider Thomson Reuters. Greater China includes Hong Kong and Taiwan as well as mainland China.
Its revenues have been bolstered by an estimated $43.6m in fees earned by selling its $3.8bn stake in the Industrial and Commercial Bank of China in order to repay capital received from the US Government at the peak of the financial crisis.
Bank of America Merrill Lynch is second in the rankings. Goldman’s US rival has also grown its investment banking revenues in the region by 11% to $58m so far this year, and earned an estimated $32.2m by selling its stake in China Construction Bank Corp worth $2.8bn, according to Thomson Reuters.
Overall investment banking revenues in Greater China total $1.5bn so far this year, 35% lower than the same point in 2008, when Citigroup was ranked first ahead of Chinese rivals CITIC and China International Capital Corporation. Goldman was ranked fifth a year ago.
Goldman could further strengthen its league table position if it is appointed as one of the main underwriters of the $10bn flotation of AIA, the Asian arm of American International Group, the insurer rescued by the US Government.
Goldman Sachs is thought to be a frontrunner with Morgan Stanley and Citigroup, according to a report this week in The South China Morning Post, which said that Bank of America Merrill Lynch is out of the running.
European banks that may also be included in the syndicate are Deutsche Bank and Credit Suisse, according the report. The underwriters and bookrunners are expected to be appointed this week.
Meanwhile, Swiss bank Credit Suisse Group announced yesterday that it had hired Simon Yuan from Bank of America Merrill Lynch to co-head its financial institutions group for Greater China. He had held the same position at the US bank since 2004.
Deals in financial institutions sector have generated $608m in revenues for banks operating in the region this year, according to Thomson Reuters, compared with $585m a year ago.
--write to dcowie@efinancialnews.com
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