Business Standard

Wall Street's IPO fee machine under threat after regulatory scrutiny

The heavier deal flow has provided an uptick in fees to the banks

usa
Premium

Representative image | Investment banks have raised $49.2 billion in US stock offerings over the past year for companies based in China

Drew Singer | Bloomberg
China’s regulatory crackdown threatens to reverse a surge in underwriting fees for US investment banks like Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley.

Companies based in China have been the most prolific foreign issuers of equity in New York during the pandemic. But the budding $50 billion flow of US initial public offerings and secondary stock sales is at risk after new regulatory scrutiny surrounding cybersecurity firms.

“China’s increased oversight of overseas listings by Chinese companies, announced by the State Council on July 6, could halt unicorn listings in 2H in Hong Kong and the U.S,” Bloomberg Intelligence

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 29 2021 | 2:25 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com