Best securities house for domestic equity capital markets 2020
Citic Securities remains the leader in domestic equities underwriting, with a volume of Rmb304.1 billion during our awards period, according to Wind – an increase of 35% from a year ago, which is an eye-catching rise for such a large firm.
There are even more impressive numbers. Under the watch of Citic’s chairman Zhang Youjun, the bank’s IPO underwriting volume rose nearly 91% year on year during our awards period, after it completed 24 IPO deals. Much of that growth was thanks to its strategic focus on China’s new Nasdaq-style technology and innovation board, Star, which is part of the Shanghai Stock Exchange (SSE). A year since its official launch in June 2019, the Star board has attracted 140 companies with a total market capitalization of Rmb3.3 trillion ($483 billion).
During our awards period, between July 1, 2019, and June 30, 2020, Citic worked on 11 Star market IPOs, including nine sponsored deals, raising Rmb17.3 billion for the companies while achieving a 13% market share, according to Wind and SSE data.
Of the completed transactions, Citic sponsored the IPO of Montage Technology, the first chipmaker to list on Star. It was also a joint lead underwriter on the Rmb10.5 billion listing of China Railway Signal & Communication Co, the first Star deal with a size surpassing the Rmb10 billion mark.
But putting more energy into the Star market did not mean that Citic neglected business on the two main boards. It worked on listings for firms including China Zheshang Bank and Postal Savings Bank of China’s listing in Shanghai, both A-share offerings for companies already listed in Hong Kong.
The firm was also miles ahead of the competition in convertible bonds and exchangeable bonds during the awards period, with Rmb53.8 billion worth of deals – nearly 50% more than its closest rival.