UBS AG (UBS) recorded the highest investment banking revenue from China in 2006 with an 11.1% share of the total, while Citigroup Inc. (C) led investment bank revenue in India with a 10.6% share.
During 2006, revenue generated from Chinese investment banking rose 67% to US$1.3 billion from US$792 million in 2005. During the year, Industrial & Commercial Bank of China Ltd.’s (1398.HK) US$21.9 billion initial public offering became the largest equity capital markets offering on record globally, beating former record-holder Japan’s NTT Mobile Communications Network’s US$18.38 billion IPO in 1998.
Chinese M&A volumes hit US$100.6 billion in 2006, up 63% from 2005’s US$61.8 billion.
The biggest Chinese M&A deal in 2006 was the US$4.47 billion acquisition of 32.2% of China Southern Power Grid Co. by China Life Insurance (Group) Co., the parent company of China’s biggest life insurer by premiums. That deal is still awaiting regulatory approval.
The acquisition by a number of parties, including China Life and Hong Kong blue-chip developer Cheung Kong (Holdings) Ltd., of a 3.3% stake in ICBC for US$4.31 billion ahead of the bank’s IPO was the country’s second-biggest M&A transaction this year.
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