In a tumultuous year for China’s investment banks, marked by a muted IPO market and stricter regulatory oversight, CICC has emerged as the undisputed leader. While prominent Chinese investment banks, such as Citic, have faced investigation case filings from the regulator, CICC has solidified its position at the forefront of the industry, particularly in the domestic M&A space.
AfE 2024
While there has been a significant decline in both onshore and offshore IPOs for Chinese companies over the past year, M&A has surfaced as a new significant opportunity in the economic downturn. CICC has established itself as the clear leader in this area, outperforming the global firms. It secured the top spot in the financial advisers’ league table in China, with 87 deals and a total value of $79 billion, representing a 19% share of the total deal value.
A standout deal was Air China’s $1.45 billion acquisition of a 66% stake in Shandong Aviation Group and the subsequent tender offer for Shandong Airlines Limited’s B-shares. This landmark transaction represents a significant move in bailing out the beleaguered civil aviation industry and marks the first acquisition in China’s civil aviation sector since the turmoil of 2020. As the exclusive financial adviser, CICC successfully navigated the complex negotiations between central and local state-owned enterprises and the extensive regulatory communication. This milestone transaction, the first tender offer for a B-share listed company aiming for delisting, showcases CICC’s innovative approach to promoting B-share market reform.
Beyond its domestic mandate, CICC has played a pivotal role in facilitating Chinese companies’ offshore IPOs, ranking as the top investment bank supporting Chinese firms’ Hong Kong listings. The successful $168 million IPO of Tuhu Car in Hong Kong, the largest in the tech sector in 2023, exemplified CICC’s prowess in this space.