India overtakes China for the first time

India overtakes China for the first time

Asian Tiger India for the first time tumbled ahead of China in M&A fees for western banks.

The world’s largest investment banks will earn more deal fees in India this year than in China. This is a first on record, which financiers have described as a historical reorientation as it moves away from the disintegrating Chinese economy.


China left behind $27 million

Foreign banks earned $231 million in M&A fees from India this year, compared to $204 million in China, according to international consulting firm Dealogic.

Global investment bank JPMorgan is among those to earn more from mergers and acquisitions in India than in China for the first time this year. 

Revenue from Chinese stock and bond markets, one of the largest sources of income for US and European financial institutions in Asia, fell in 2022 as mainland China shut itself down during the pandemic and local banks were increasingly favored.



While deal activity is expected to increase as China reopens, Wall Street bankers have warned that the prolonged shutdown will cause more Chinese companies to turn to local banks for advisory business in the future.

70% decrease in bank revenues

According to Dealogic’s data, foreign investment banks’ main revenues are from equity and debt capital markets, as well as from mergers and acquisitions. The money entering the vaults of banks from these assets decreased by 70 percent compared to 2021 to $ 602 million. This comes after a 15 percent drop the previous year.

Jan Metzger, Head of Citi’s banking and advisory department in Asia, told the Financial Times: “The evolution of the banking wallet with the growth in technology and the more active incumbent Indian corporate giants will make India a leading investment banking market for Citi in 2022.” He says he brought 

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