Which Bank Will Secure the Next Big Listing in Hong Kong for Just 0.01% Fees? Find Out Now!

In the cut-throat world of investment banking, the competition for high-profile deals is fierce, with Chinese banks now pitching record-low fees for a chance to work on the blockbuster Hong Kong secondary listing of CATL, the world’s leading EV battery maker. Here’s what you need to know about this groundbreaking deal:

Competitive Pitching:
Chinese banks, including CICC and CSC, are vying for a leading role in CATL’s listing by offering fees as low as 0.01 per cent. This aggressive pitching underscores the intense competition in Hong Kong’s once-lucrative listings market, now experiencing a significant slowdown due to economic conditions.
Top Players:
CICC, CSC, JPMorgan, and Bank of America are positioned for key roles in the CATL listing, set to be one of the largest in recent years. The fee structure proposed by some Chinese banks is notably lower than the standard, reflecting the challenging market environment.
Fee Structure:
While CATL plans to pay around 0.2 per cent in underwriting fees, incentive fees based on order value could drive the final number higher for banks involved. Despite lower fees on large deals like CATL, figures below 1 per cent are rare, indicating the unique circumstances of this offering.
Market Dynamics:
US banks are undeterred by CATL’s inclusion on a blacklist for alleged ties to China’s military and are participating in the listing. The eagerness of some institutional investors to secure an allocation showcases enduring interest in CATL despite the geopolitical backdrop.
Industry Insights:
The CATL listing presents an opportunity for banks to boost their league table rankings and potentially secure future business with CATL. Despite the slim profit margins on this deal, being associated with such a high-profile transaction is seen as a strategic move for banking institutions.

With the global spotlight on CATL’s listing, the investment banking landscape is evolving, raising questions about fees, competition, and market dynamics. As the deal progresses, industry watchers will be closely observing how this groundbreaking listing shapes the future of capital markets.