March 31, 2017 / 2:47 AM / 6 months ago

AsiaPac equity issuance up 20 pct as China speeds up IPO approvals

    By Elzio Barreto
    HONG KONG, March 31 (Reuters) - Share sales on Asia ex-Japan
stock exchanges climbed 20 percent in the first quarter, buoyed
by a surge in initial public offerings (IPOs) as China's
regulator stepped up the approval of new listings in the world's
second largest economy, Thomson Reuters data showed on Friday.
    Proceeds in equity capital markets (ECM) in the region rose
to $36.9 billion in the first quarter versus $30.8 billion in
the first quarter of 2016, according to preliminary data through
March 30.
    IPO issuance jumped 68.4 percent to $12.4 billion, led by a
steep increase in deals in mainland China stock exchanges that
put Shanghai as the main destination for new listings in the
region and second in the world, behind the New York Stock
Exchange (NYSE). Follow-on offerings, or the sale of new and
existing shares in listed companies, edged 4.8 percent higher to
$24.5 billion.
    The China Securities Regulatory Commission (CSRC) has
increased the pace of IPO approvals in recent months to reduce
the queue of nearly 700 companies waiting to go public, granting
the most number of deals since the second quarter of 2015, data
showed.
    Goldman Sachs led equity underwriting in the Asia Pacific
region, handling $3.4 billion worth of deals, though Chinese
securities companies that dominate domestic equity issuance took
six of the top 10 spots in rankings.
    Chinese firms' grip of local markets put them at the top
seven spots in a ranking of fees earned on equity deals, with
Haitong Securities taking the lead.    
    Following is a list of the region's top ECM underwriters in
the first quarter of 2017 and the estimated fees earned on the
deals.    
 
 Bank                   Deal Volume  Change from  Rank    Rank
                        (in $mln)    Q1 2016      2017    2016
                                                              
 Goldman Sachs                3,435      399 pct       1    14
 Guotai Junan Secs            2,492     16.3 pct       2     1
 CITIC                        2,015      2.6 pct       3     2
 Haitong Securities           1,718     55.3 pct       4     6
 UBS                          1,692    167.8 pct       5    16
 CICC                         1,673     75.1 pct       6    10
 China Securities             1,601    458.6 pct       7    32
 Citigroup                    1,394     59.3 pct       8    12
 Bank of America                937    222.5 pct       9    31
 GF Securities                  927    -15.8 pct      10     7
                                                              
 INDUSTRY TOTAL              36,933     20.0 pct              
 
Source: Thomson Reuters
    
 Bank                          Q1 2017 fees  Change from
                                  (in $mln)      Q1 2016
                                                        
 Haitong Securities                    77.1     69.3 pct
 GF Securities                         73.8    133.8 pct
 CITIC                                 72.3     54.1 pct
 Guotai Junan Securities               71.7     72.5 pct
 China Securities                      59.3    445.6 pct
 Huatai Securities                     56.4    164.9 pct
 CICC                                  51.3    182.4 pct
 Citigroup                             47.6    201.3 pct
 Goldman                               44.6    280.7 pct
 UBS                                   37.8    347.3 pct
                                                        
 INDUSTRY TOTAL                       1,323     84.9 pct
 Source: Thomson Reuters

 (Reporting by Elzio Barreto; Editing by Amrutha Gayathri)
  

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