For the first time, Western banks' M&A deals in India surpassed those in China.
(European News Agency file photo)
[Compilation of Wei Guojin/Taipei Report] "Financial Times" reported that the world's largest investment bank will earn more fees from India this year than from China. This first-ever development has been described as a historic repositioning by financial institutions. From China's economy decoupled from the world to a diversified layout.
So far this year, foreign banks have earned $231 million (TW7.1 billion) in mergers and acquisitions (M&A) fees from India, up from the $204 million (TW6.3 billion) earned from China, according to Dealogic data.
JPMorgan Chase & Co is one of the financial institutions to make more money this year from M&A deals in India than in China for the first time this year, according to two people familiar with the matter.
JPMorgan declined to comment.
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According to the report, China's stock and bond market has always been one of the largest sources of transaction fees for European and American financial institutions in Asia. slide.
According to Dealogic data, the core income of foreign investment banks, including equity and debt capital market and merger and acquisition fees, has fallen 70% this year from the same period last year to 602 million US dollars, while the previous year also fell 15%.
The trend underscores once again how the growing decoupling of U.S.-China trade, investment and technology will impact capital markets.
While India is only a fraction of the huge profits China brings to global investment banks, the data shows that Western financial institutions are broadly turning to other markets for opportunity and profitable growth.
Jan Metzger, Head of Banking, Capital Markets and Consulting at Citigroup Asia, said that the progress of Indian bank payments, the growth of the technology industry and the activity of Indian corporate giants have made India the most important investment banking market for Citigroup this year. It is expected that this pattern will continue in the next few years.
"This is a fundamental and permanent repositioning of Wall Street," said the head of Asian investment banking at an American bank in Singapore. "Where else can Asia go if Xi Jinping is seen as intent on building his own sphere of economic influence and the U.S. shows no signs of stopping its crackdown on China?" "?
India is an outlier in global M&A activity this year.
In the first nine months of this year, India's M&A activity surged 58 percent to US$148 billion (NT$45.5 trillion) in the first nine months of this year from a year earlier, a record high, despite inflation and fears of a recession. All-time high.
The shift of Wall Street banks is similar to the transfer of production lines in the technology industry last year. According to data, many investment funds have shifted from China to India. Last year, for every US$1 invested in China’s technology industry, US$1.5 was invested in India.
"India can be unpredictable and foreign companies must have been hurt in India before, but you can no longer put all your eggs in one basket like China, especially because of the supply chain and the economy," said an asset manager who expanded his India office. uncoupling."
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