| Nicholas Andrews | ||||||
It has been a record year for equity and equity-linked issuance in the Asia ex-Japan market. By November it was clear that the $38 billion record set in 1999 was going to be broken by about $2 billion. "That's another $1 billion in equity capital market fees," says one banker grinning and rubbing his hands.
With Hong Kong and China responsible for 70% of the new issuance, issuers from these two markets are picking up most of the tab.
The foreign banks may be happy but the news for their investing clients and many issuers is a little less rosy. Being smug when the price of your stock has disappeared beneath the waves is something of a challenge.
"Nearly all deals have been performing badly, and most IPOs are underwater," says Nicholas Andrews, managing director and head of equity capital markets at CSFB in Hong Kong.