Mainland Chinese investment banks are solidifying their lead over global competitors as Hong Kong experiences a surge in initial public offerings (IPOs), particularly from technology companies. Beijing’s strategic push to cultivate domestic financial giants similar to Goldman Sachs is gaining momentum, with state-backed firms dominating the lucrative listing sector.

China International Capital Corporation (CICC), headquartered in Beijing and controlled by the central government, emerged as the top underwriter in both Hong Kong and mainland Chinese markets during the first half of 2025. According to data from LSEG Data & Analytics, CICC facilitated capital raises totaling approximately US$3.23 billion across 36 IPOs in Hong Kong, securing a 12.23 percent market share. This figure represents a 166 percent increase compared with the same period a year earlier.

Other leading mainland players include Huatat Securities, which raised US$2.48 billion from 18 offerings (9.39 percent market share), and Citic Securities, with US$1.88 billion generated from 31 deals. In China’s A-share market, the top underwriting firms were CICC, Citic Securities, Guotai Haitong Securities, Shenwan Hongyuan Securities, and SDIC Securities, according to data from the Chinese financial provider WIND.

Fitch Ratings highlighted the pivotal role of securities companies with robust business models and capital strength in advancing China’s strategic financial goals. The rating agency noted that such firms are poised to receive reinforced state support. This aligns with Beijing’s ambition, championed by President Xi Jinping, to establish two or three globally competitive securities firms by 2035 as part of its broader plan to transform China into a financial superpower.

Regulatory data indicates that China’s 10 largest securities firms—including Citic Securities, Guotai Haitong, Huatat, Guangfa, and CICC—accounted for roughly two-thirds of the industry’s operating revenue in 2025. Further consolidation has been underway, with notable mergers including Guotai Junan Securities with Haitong Securities, Guosen Securities’ acquisition of Vanho Securities, and a partnership between Guolian Securities and Minsheng Securities. Additional proposed deals involve CICC’s intended acquisitions of Cinda Securities and Dongxing Securities, along with Soochow Securities’ purchase of Donghai Securities and Orient Securities’ acquisition of Shanghai Securities.

Fitch’s report emphasized that recent state-led consolidations have reshaped how government stakeholders utilize securities firms within China’s financial ecosystem. Moving forward, shareholder support is expected to become more closely tied to a firm’s strategic importance rather than ownership status alone.

As the world’s second-largest capital market, China is experiencing a transition from reliance on debt-driven economic growth toward greater emphasis on capital markets to fund strategic sectors. Currently, about 150 securities firms operate within the country, predominantly controlled by central and local government entities, according to the Securities Association of China. Collectively, these firms generated revenues of 541.17 billion yuan (approximately HK$626 billion) and net profits of 219.44 billion yuan in 2025.

Highlighting this shift, Pan Gongsheng, governor of the People’s Bank of China, reported at the recent Lujiazui Forum in Shanghai that bond and equity financing volumes surpassed traditional bank credit for the first time in 2025, underscoring the growing role of securities firms in China’s evolving financial landscape.