Hong Kong's IPO boom sets off underwriter price war
LORRETTA CHEN
HONG KONG -- A price war has broken out in the Hong Kong financial world as competition among investment banks drives down underwriting fees for initial public offerings in what has become the world's hottest market for new stock listings.
As a result, banks now earn only a fraction of the commissions they received just a few years ago, even as companies raised 107.1 billion Hong Kong dollars ($13.6 billion) through IPOs in the first half of this year, topping two major rivals in the U.S. Some Chinese competitors are willing to accept fee cuts in exchange for lead roles on deals, according to several industry insiders and a review of company prospectuses.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
3 hours ago
8 Major Japan Automakers' Global Sales Up 1.3 Pct in Jan.-June
News from Japan Jul 30, 2025 20:04 (JST) Tokyo, July 30 (Jiji Press)--Eight major Japanese automakers' combined global sales grew 1.3 pct from a year before to 12.19 million units in January-June, data from the companies showed Wednesday. Toyota Motor Corp. posted a 5.5 pct sales increase, thanks to the popularity of its hybrid vehicles in the North American market and elsewhere. Daihatsu Motor Co.'s sales jumped about 30 pct as it recovered from a vehicle testing scandal. Mazda Motor Corp. and Subaru Corp. also logged higher sales. Meanwhile, Nissan Motor Co., which is facing management difficulties, saw sales drop 5.7 pct. Honda Motor Co., which is struggling in the Chinese market, posted a 5.1 pct decline. Sales also shrank at Suzuki Motor Corp. and Mitsubishi Motors Corp. [Copyright The Jiji Press, Ltd.] Jiji Press
Nikkei Asia
4 hours ago
- Nikkei Asia
China Politburo cheers 'resilience,' warns on 'disorderly competition'
President Xi Jinping and Premier Li Qiang at a reception last September. China's top decision makers have acknowledged that the economy "faces many risks and challenges." © Reuters STELLA YIFAN XIE HONG KONG -- China's top decision-making body on Wednesday signaled confidence while also pledging to support growth and tackle "disorderly competition" in the world's No. 2 economy. The Chinese economy has run "steadily" and demonstrated "great vitality and resilience" in 2025, according to a readout from the meeting of the Communist Party's Politburo.
Asahi Shimbun
4 hours ago
- Asahi Shimbun
South Korea officials, business leaders join last-ditch push for U.S. trade deal
A car carrier transporting vehicles made by Kia Motors, which is part of South Korea's biggest automaker company Hyundai Motor, travels near Pyeongtaek port in Pyeongtaek, South Korea, on July 8. (REUTERS) SEOUL--Three South Korean cabinet-level officials met U.S. Commerce Secretary Howard Lutnick in Washington for trade talks, Seoul said on Wednesday, as top business leaders were also reported to be flying in to help lobby for a deal on U.S. tariffs. South Korean Finance Minister Koo Yun-cheol joined Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo, who have been in Washington since last week, for two hours of talks with Lutnick, a ministry spokesperson said in Seoul. The finance ministry spokesperson did not offer details of the discussions. U.S. President Donald Trump has set an August 1 deadline for 25% tariffs to kick in against South Korea, a major U.S. ally and powerhouse exporter of chips, cars and steel. The South Korean government is negotiating with the U.S. by 'setting up a package that focuses on areas where South Korea and the U.S. can achieve mutually beneficial results to the extent that we can bear them,' the presidential office said in a statement. South Korean President Lee Jae Myung told his ministers to 'engage in the difficult consultation with confidence' as he was briefed on the status of the talks on Wednesday, his office said. The latest meeting came as the Wall Street Journal reported that Lutnick had urged the South Korean team to bring their best and final offer to the table during a meeting he had with Kim and Yeo in Scotland. Lutnick told the South Korean officials they need to 'bring it all' when they make their final offer to Trump, the report said. South Korea's benchmark KOSPI stock index rose 0.7% on Wednesday to hit a near four-year high, as the flurry of U.S. visits by government and company officials raised optimism around the country's trade negotiations. Koo, who arrived in Washington on Tuesday, has said he hopes to convince the United States the package of trade and related offers of industrial cooperation, including in shipbuilding, is to the allies' mutual benefit. Koo also plans to meet U.S. Treasury Secretary Scott Bessent during the visit. The heads of some of South Korea's largest global companies were converging on Washington to lend support to government negotiators, media reports said. Hyundai Motor Group Chairman Euisun Chung was reported to be departing for Washington on Wednesday. Samsung Electronics Chairman Jay Y. Lee and the vice chairman of the Hanwha Group, Kim Dong-kwan, whose affiliate Hanwha Ocean has unveiled a major investment plan in the United States, were also in Washington, D.C. Hyundai Motor, which along with its affiliate Kia Corp is the world's third-largest automaker, will face a significant impact in the absence of a waiver or reduction in a 25% import duty on cars given that the U.S. is a major export destination. South Korean officials were also discussing potential cooperation in chips, batteries and biotechnology under a package proposal, South Korea's chief presidential policy secretary Kim Yong-beom said. Pressure has been mounting on South Korea since Japan clinched a deal to cut Trump's threatened tariffs to 15% last week. This was followed by a U.S.-EU trade deal over the weekend, and Trump's top aides, including Bessent, are now working to close a deal with China. South Korean Foreign Minister Cho Hyun is also travelling to Washington this week to assist with the tariff negotiations.
