Once again, Chinese financial exchanges raised more capital for companies going public than the Big Board in 2011. The last time the New York Stock Exchange led the world in amounts raised in initial public offerings was 2008.
Taken together, the Chinese bourses of Shanghai, Shenzhen and Hong Kong raised almost twice the money raised by Wall Street last year, according to data from Deal Logic.
For the third year in a row, Hong Kong was at the top, raising $30.9 billion. The New York Stock Exchange brought in $30.7 billion for companies going public.
Across the pond, the London Stock Exchange tallied $18 billion for companies entering the publicly traded arena.
In an article in the Financial Times by Robert Cookson and Gregory Mayer, "China keeps its crown in IPO table," it was reported that these intial public offerings were not just tiny mainland China companies. Hong Kong in particular "hosted landmark IPOs by foreign groups including Prada, Glencore and Samsonite."
However, China has been a difficult market for foreign firms such as Royal Bank of Scotland ( RBS , quote ), Deutsche Bank AG ( DB , quote ) and Goldman Sachs ( GS , quote ) to penetrate. Even China-based HSBC Holdings ( HBC , quote ) has had trouble.
"Goldman Sachs, the world's leading equity book runner by volume, has not underwritten a single IPO on the mainland since 2009," Cookson and Meyer note in their front page Financial Times article.
The share for Chinese banks like Bank of China ( BACHY , quote ) in these deals continues to rise, hitting 30% of the market in 2011.