Chinese investment banks are generating billions of dollars as they surpass international competitors, fueled by Hong Kong's surge in initial public offerings driven by tech companies, even as Beijing continues its effort to create a domestic equivalent of Goldman Sachs.
A small number of Chinese investment banking firms have gained control over the IPO sector, which is among the most lucrative areas, as Beijing-headquartered China International Capital Corporation (CICC) leads in both the Hong Kong and Mainland China markets.
State-owned CICC raised $3.23 billion through 36 transactions in Hong Kong during the first six months of this year, securing a 12.23 percent stake in the market, according to LSEG Data & Analytics. The company’s overall capital increased by 166 percent compared to the same time frame last year.
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Huatai Securities came in second place with $2.48 billion raised through 18 issues, securing a 9.39 percent stake in the market, closely trailed by Citic Securities, which generated $1.88 billion from 31 transactions.
According to Wind, a Chinese financial market data supplier, the leading five IPO underwriters in the A-shares market include CICC, Citic Securities, Guotai Haitong Securities, Shenwan Hongyuan Securities, and SDIC Securities.
"Securities companies possessing robust business and financial structures are most suited to promote the country's strategic goals and are expected to garner more governmental backing," stated the international credit ratings firm Fitch in a report released on June 29.
Beijing aims to establish two or three world-class stock market companies by 2035, as part of President Xi Jinping's vision to transform China into a financial giant .
The top ten Chinese securities companies, such as Citic Securities, Guotai Haitong Securities, Huatai Securities, Guangfa, and CICC, generated approximately two-thirds of the sector's total income in 2025, according to information published by financial regulatory authorities.
The industry remains consolidated as Guotai Junan Securities merges with Haitong Securities, Guosen Securities acquires Vanho Securities, and Guolian Securities combines with Minsheng Securities.
Ongoing transactions involve CICC's planned takeover of Cinda Securities and Dongxing Securities, as well as Soochow Securities' deal to acquire Donghai Securities and Orient Securities' intended purchase of Shanghai Securities.
Fitch stated in its report that China's government-driven integration over the last two years has altered the way state-owned shareholders perceive and utilize securities companies within the nation's larger financial framework.
It mentioned that investor backing would more likely depend on "a company's strategic importance instead of just ownership."
As the world's second-largest financial hub, China is undergoing a wider shift from growth fueled by borrowing, leading to an enhanced role of capital markets in supporting key sectors.
As reported by the Securities Association of China, there are approximately 150 securities companies operating within the nation, with the majority being managed by central and regional governmental bodies.
The organization reported that they jointly achieved revenue of 541.17 billion yuan (US$79.65 billion) and a net profit of 219.44 billion yuan in 2025.
Pan Gongsheng, head of the People's Bank of China, stated the following: The Lujiazui Forum held in Shanghai last month That year, funding through bonds and stocks exceeded bank loans for the first time in 2025.
In its 2026–2030 national development strategy, Beijing pledged to enhance the role of the capital market and raise the share of direct funding.
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