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Deal momentum in China: Rebuilding Capital issuance with Block trades

Here’s the rest of the Reuters analysis on the rising value of Block trades and the dip in IPO business since March 2011:

Block trades in China, the world’s second-largest economy, have hit $7.64 billion so far this year, more than double the $3.8 billion worth of deals in Australia or the $3 billion in South Korean offerings over the same period.

Morgan Stanley took the top post in underwriting block sales and worked on five of the top 10 deals, including Temasek’s Bank of China and CCB stake sales.

Goldman Sachs ranked second, followed by Bank of America Merrill Lynch, UBS and Citigroup, according to Thomson Reuters data.

Other large block deals included Cairn India’s $2.1 billion sale in April, which was managed by DSP Merrill Lynch, and a $1.8 billion sale in CPIC in January, handled by Goldman.

The focus on block sales comes as equity capital market issuance in Asia-Pacific has tumbled to $172.4 billion so far this year, compared with $259.1 billion in the same period last year, according to Thomson Reuters data.

The decline has been even more severe in the fourth quarter, with issuance down to $7.9 billion through early November, from $60.6 billion in the same period of 2010.

Our analysis of how markets are getting busier in China here (Deal momentum in China) In India, UBS CEO Manisha Girotra has moved on after other senior management also leaving in a deal less Asian expanse. India’s deal fees have come to below $500 mln fo r the first nine months and worldwide Q4 ECM business income is as low as $205 mln till date from $1,400 bln

Meanwhile after reporting defaults for three years, Jeffersen country finally filed for Bankruptcy and muni market experts feel the same is likely to be absorbed deftly

One comment on “Deal momentum in China: Rebuilding Capital issuance with Block trades

  1. Pingback: This week’s investment banking buzz and inspiration | Advantage Dealbook | The Banking and Strategy Initiative

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This entry was posted on November 10, 2011 by in Banking, China, Europe, Financial Services, Global, US and tagged , , , , , , , .

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