Citic Securities leads Asia Pacific investment banking as Chinese firms dominate fee rankings
A reshaped investment banking hierarchy in Asia
The balance of power in Asia Pacific investment banking is shifting, with Chinese firms now firmly at the top of the regional rankings. Citic Securities emerged as the leading investment bank in the region after generating US$1.45 billion in fees, according to industry data. The result places Citic ahead of long established global competitors and highlights the growing influence of domestic Chinese institutions in capital markets activity.
Chinese banks occupied four of the top five positions in the Asia Pacific fee league tables, underlining a structural change rather than a one off performance. The only non Chinese institution in the top tier was Morgan Stanley, which ranked sixth, a notable position given its historical dominance in the region.
Why Citic’s rise matters
Citic’s performance reflects more than strong deal execution. It signals how China’s capital markets are increasingly being intermediated by domestic players rather than international banks. As regulatory familiarity, local relationships, and onshore expertise become more important, Chinese issuers are turning to homegrown firms that can navigate complex approval processes and align with national priorities.
For Citic, topping the rankings reinforces its position as the go to adviser for major equity and debt transactions involving Chinese companies. Its scale and reach allow it to compete across underwriting, mergers, and strategic advisory work, areas once dominated by Wall Street banks.
Chinese rivals consolidate their dominance
Citic was not alone. Other Chinese securities firms filled out the rest of the top five, demonstrating the depth of domestic competition. This clustering suggests that Chinese investment banking strength is broad based rather than concentrated in a single champion.
These firms benefit from strong balance sheets, extensive distribution networks, and close ties to state owned enterprises as well as fast growing private companies. As more fundraising and restructuring activity takes place within or around China, their competitive advantages become increasingly pronounced.
Morgan Stanley’s relative decline in ranking
Morgan Stanley’s sixth place finish does not imply weak performance, but it does highlight how the competitive landscape has changed. US banks continue to play important roles in cross border transactions, offshore listings, and complex advisory mandates. However, their share of total fees has come under pressure as Chinese firms capture a larger slice of regional activity.
Geopolitical tensions and regulatory divergence have also complicated the operating environment for foreign banks. While they remain influential, especially in international markets, their dominance in Asia Pacific is no longer assured.
Fees reflect where deals are happening
Investment banking fees tend to follow deal flow. In recent years, Asia Pacific activity has been increasingly driven by mainland China related transactions, including domestic bond issuance, restructuring, and strategic capital raising. Even when deals have an international component, Chinese firms are often deeply involved.
This trend has benefited local banks that can operate seamlessly across onshore and offshore markets. It has also reduced reliance on foreign intermediaries, particularly for transactions that are primarily domestic in nature.
Implications for global investment banking
The rise of Chinese firms in Asia Pacific has broader implications for the global industry. It suggests a gradual regionalisation of investment banking, where local champions dominate their home markets while international banks focus on cross border niches.
For global institutions, this means adapting strategies rather than retreating. Partnerships, specialisation, and selective engagement may become more important than trying to compete head to head in every segment.
What comes next for the sector
Looking ahead, competition among Chinese investment banks is likely to intensify. As margins tighten and regulatory scrutiny increases, firms will need to differentiate through expertise, technology, and international reach. At the same time, global banks will look for ways to remain relevant in a market where access and insight matter as much as brand.
Citic’s top ranking serves as a snapshot of this evolving landscape. It reflects not only one firm’s success, but a broader reordering of financial power in the Asia Pacific region.
