KissMy
Free Breast Exam
FT: China takes lead in financial deals
Deals and capital raisings in Chinas booming financial services sector have outpaced those in the US for the first time since records began in 1995, fuelled by a wave of refinancings by Chinese banks needing to repair their balance sheets.
There have been $36.2bn-worth of deals in Chinas financial sector so far this year, compared with $26.2bn in the same sector in the US, according to data from Dealogic.
Bankers said the increase in deal flow was being driven by large refinancings by Chinese banks as they move to shore up their capital this year, rather than full takeovers.
The Chinese government has been rigorous and disciplined about maintaining strong capital ratios in the banking system and as a result one may see more and more capital allocation and reallocation among financial services companies, said John Studzinski, head of Blackstones global advisory business.
In response to the financial crisis, Beijing ordered a credit-fuelled investment boom in late 2008 to boost flagging growth and in 2009 Chinese banks handed out roughly double the volume of new loans extended the previous year.