Goldman Shunning China Deals Loses Out on Busiest IPO Market

Goldman Sachs Group Inc., the first Wall Street firm to win an underwriting license in China, is sitting out the world’s busiest initial public offering market.

The bank, No. 3 globally in advising on IPOs this year, has managed only one offering in China in three years, according to data compiled by Bloomberg, and three since it obtained its license in 2004. Goldman Sachs executives say that’s because they want to avoid the risk of underwriting unproven companies, face regulatory hurdles and have fewer employees than competitors. Instead, they’re taking Chinese firms public on overseas exchanges, where fees can be higher.