Chinese brokerage IPOs a tougher sell in 2016

Chinese securities firm earnings are under pressure as brokerage fees come off their elevated 2015 levels, making it harder for ECM bankers to bring new offerings to market.

Chinese brokerages preparing to list this year are finding it hard to gain traction with investors, in contrast to some of their rivals in the first half of last year when Chinese stock markets were caught up in a frenzy of buying.

As a result, equity capital bankers contacted by FinanceAsia believe they will not see light this quarter.

Bankers are expecting an uphill struggle for some of the equity offerings planned, including those by Everbright Securities, Orient Securities, and China Merchants Securities, as most of these companies are expected to report lower earnings this year due to reduced brokerage fees and commissions...

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