Equity Capital Market (ECM) Teams Are Staying Busy in Hong Kong

Hong Kong's IPO pipeline remains strong, with many companies preparing to go public. KPMG reports that the Hong Kong Stock Exchange raised HK$87.3bn in the first half of 2020, marking a 22% increase compared to the same period in 2019. This points to a busy period ahead for equity capital market (ECM) teams.

Growing demand for ECM teams

In May, the U.S. Senate passed a bill that threatens to delist companies not complying with American audit requirements, increasing scrutiny on Chinese firms. This has driven many Chinese companies to choose Hong Kong over New York for their listings.

Refinitiv data shows a 24% year-on-year increase in fees earned by American banks from Chinese IPOs, follow-on share sales, and convertible bonds, with major companies like JD.com and NetEase leading the way. This surge in activity suggests a growing need for ECM expertise.

Selective hiring in ECM

Despite the increased activity, banks have been cautious about expanding their ECM teams. Instead of large-scale recruitment, many are maintaining their current headcount, choosing to selectively bring in top talent that becomes available in the market.

Internal shifts to ECM teams

Selby Jennings North Asia reports that investment banks in Hong Kong are reallocating staff from less active desks, such as Debt Capital Markets (DCM) and Mergers & Acquisitions (M&A), into ECM teams. While ECM hiring is expected to grow, rising geopolitical tensions could accelerate this, with more Chinese companies potentially delisting from the U.S. and relisting in Hong Kong or China, keeping ECM teams occupied.

Investment banking jobs in Hong Kong

If you're exploring ECM or other investment banking opportunities in Hong Kong, we are working with firms that have immediate hiring needs.

Whether you are building your investment banking team, or are looking for new investment banking job opportunities, contact our award-winning recruitment team below for support.