China’s investment banking fees fall to lowest in 5 years

Only DCM underwriting fees saw growth.

Investment banking fees generated in China fell by 18% year-on-year in 2024, on the back of lower equity capital markets (ECM) underwriting fees, lower M&A advisory fees, and lower syndicated lending fees.

A total of $12.5b in fees were generated in China, its lowest since 2019, according to data from the London Stock Exchange Group (LSEG).

ECM underwriting fees accounted for 12% of China’s investment banking fee pool and totaled $1.5b, down 64% from a year ago.

In contrast, debt capital markets (DCM) underwriting fees grew 5% and reached $9.9b.

Completed M&A advisory fees dropped 35% to to $499.m compared to 2023.

Syndicated lending fees reached $636.8m, down 25% from 2024.

Amongst financial institutions,  CITIC leads the China investment banking fee league tables with $1b in related fees, equivalent to an 8.4% wallet share in 2024.