Market Insights Financial Corporate Finance

Investment Banking - China

China

The revenue in the Investment Banking market is projected to reach €30.88bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.18% resulting in a projected total amount of €32.75bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (€120.70bn in 2024).

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Analyst Opinion

The Investment Banking market in China is experiencing a significant shift in customer preferences, trends, and local special circumstances.

Customer preferences: Chinese investors are increasingly seeking diversified investment opportunities both locally and internationally. They are looking for investment banking services that offer a wide range of products and solutions to meet their evolving financial needs. Additionally, there is a growing demand for personalized and tailored investment advice to navigate the complex and volatile market conditions.

Trends in the market: One notable trend in the Chinese Investment Banking market is the rise of technology-driven financial services. Fintech companies are disrupting traditional investment banking models by offering innovative solutions such as online trading platforms, robo-advisors, and digital wealth management services. This trend is reshaping the industry landscape and forcing traditional investment banks to adapt and embrace digital transformation to stay competitive.

Local special circumstances: The regulatory environment in China plays a crucial role in shaping the Investment Banking market. With the government's focus on financial stability and risk management, investment banks in China are subject to strict regulations and oversight. This has led to increased compliance costs and operational challenges for market participants. Moreover, the presence of state-owned enterprises and government influence in the financial sector adds another layer of complexity to the market dynamics.

Underlying macroeconomic factors: The rapid economic growth and urbanization in China have created a favorable environment for the development of the Investment Banking market. As the country continues to open up its financial sector to foreign investment and promote capital market reforms, there are abundant opportunities for investment banks to expand their presence and capture a larger market share. Additionally, the increasing wealth and disposable income of Chinese consumers are driving demand for sophisticated financial products and services, further fueling the growth of the Investment Banking market in China.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.