Deals
Bankers See Fees Fade as China Era of Jumbo IPOs Draws to Close
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The initial public offering of People’s Insurance Company (Group) of China last week was notable as Hong Kong’s largest in two years. Bankers still don’t anticipate it augurs a new round of big Chinese IPOs.
The reason: Most of the biggest Chinese state-owned companies have already gone public in the last 15 years in Shanghai and Hong Kong. Private-sector businesses, beset by shrinking profits amid overcapacity and rising labor costs, aren’t likely to fill the void anytime soon, according to investment bankers and deal lawyers.