Shares in China Renaissance (1911.HK) leapt 10% on Thursday after the investment bank said its year-on-year profit would almost treble to 1.2 billion yuan ($185 million) in the six months to June. Its now-profitable securities unit and its private equity funds both helped. But the full update, due next month, is likely to show the investment bank was a key driver.
The tech-focused lender rose to 11th in the league table for offshore Chinese equity offerings so far this year, up from 18th in 2020, per Dealogic. The data provider calculates the bank has so far earned $30 million in fees, just shy of its takings for all of 2020. Yet Chinese listings have dried up this month following a series of crackdowns by Beijing on various sectors, including questions about the structure used by many firms to list offshore. Bankers expect a recovery of sorts as investors settle down, but chances are the second-half showing won’t be so exuberant.
Reuters – (By Jennifer Hughes)
