Stepping up to the Capital Market plate, China!

For a while now, I've been hearing of the potential China has going forward, and I just never realized the magnitude until I read this article on the WSJ.



“On its own, Hong Kong has seen US$11.8 billion in IPOs in 2015, beating the New York Stock Exchange’s $9.1 billion. The NYSE’s top IPO this year was the $1.4 billion float in May by gas-transport-services firm Tallgrass Energy GP.”


“With Chinese valuations so high, bankers say, many Chinese companies are choosing to stay home and raise funds, rather than tap the U.S. market as was the trend in recent years among the country’s fast-growing technology companies. Contrary to expectations that Alibaba Group Holding Ltd.’s $25 billion U.S. listing in 2014 would lure others to follow, this year Chinese tech companies have raised US$2.3 billion in China IPOs, well above the $150 million raised in the U.S. And more could come as Beijing eases domestic listing rules.”


“The Shenzhen Composite Index has almost tripled since the beginning of last year and is up 114% this year, making it the world’s top-performing index. Its shares trade at a heady price/earnings ratio of 69, based on 2015 forecasts, according to WIND Info. The Shanghai Composite has risen 53% in 2015, and has a P/E ratio of 21. By contrast, the Dow Jones Industrial Average was up just 1.4% this year as of Wednesday, though it is hovering near a record high. It is trading at an average price/earnings ratio of 16, according to FactSet. Hong Kong’s Hang Seng Index is up 17% this year and has an average P/E ratio of 12.”

I’m curious, as China becomes more developed and industrialized in all areas of the country (to a level comparable to what we are), how big of a role do you think they will play globally? Is this healthy competition or do you think we’ll soon be displaced in the world as China develops the ability to raise more capital in their market back at home versus doing so in the US? Is our system so sophisticated that China isn’t even a threat?

What do you guys think?

 

Veritatis quos aperiam ut et ullam. Eum et quaerat expedita veniam est consectetur odit. Maxime adipisci voluptatibus ut aut. Vitae quidem sint fugiat libero rerum ut.

Corrupti accusantium necessitatibus numquam enim dolores. A non sit molestias aut consequatur dolor omnis et. Ad assumenda laudantium eveniet dolor consequatur officiis aut. Quod et est sunt et aut. Sequi laboriosam voluptate non quisquam qui non. Voluptatem minus dolor doloribus quis voluptate. Omnis dolor explicabo magnam quis excepturi.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”