China’s investment banking fees climbed to $15.4 billion in 2025, marking a 21 percent year-on-year increase and the highest annual total since 2022, supported by a rebound in equity fundraising, record bond issuance, and higher state-led mergers and acquisitions.
Equity And Debt Fees Show Diverging Growth
According to a report from LSED Data & Analytics, fees from equity capital markets reached $2.95 billion, accounting for 19 percent of the total fee pool. That figure represented a 91 percent increase compared with 2024.
Debt-related fees totalled $11 billion, up 11 percent year-on-year, continuing to represent the largest share of overall investment banking revenues in China.
Bond Issuance Reaches Record Levels
Primary bond issuance by China-domiciled issuers rose to a record $4.1 trillion in 2025, an increase of 13.5 percent from the previous year. Government and agency issuers generated roughly half of total proceeds, while financial institutions contributed just over 30 percent.
Equity Capital Markets Rebound After Weak Year
China’s equity capital markets recovered after a subdued 2024. Total funds raised by Chinese issuers reached $124.3 billion, more than double the prior year’s level.
The recovery was driven by follow-on offerings, which surged nearly 200 percent to $73.2 billion. Initial public offering proceeds increased 82 percent to $26.5 billion, with listings concentrated in mainland China and Hong Kong.
M&A Activity Accelerates On Large Deals
Mergers and acquisitions involving China totalled $474.3 billion in 2025, up 62.6 percent year-on-year and the highest level since 2021. The increase was driven by 18 megadeals valued at more than $5 billion each, which together amounted to $177.9 billion.
Cross-border activity remained limited. Inbound M&A reached $24 billion, down 0.7 percent and the lowest level since 2009. Outbound M&A edged up 5.2 percent to $24.4 billion.
League Tables Led By Domestic Banks
CITIC ranked first in overall investment banking fees, generating $1.4 billion and capturing an 8.8 percent market share. The firm also led equity and bond underwriting rankings.
China International Capital Corporation topped the M&A advisory league tables, with $89.7 billion in announced deal value.
Featured image credits: Dickson Phua via Flickr
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