Skip to content
Markets
Deals

Wall Street’s IPO Fee Machine Under Threat Post-China Clampdown

  • China-based firms lead the world in U.S. cross-border issuance
  • Fewer deals appear likely in wake of cybersecurity scrutiny
A Day in the Life of Wall Street as New York’s Return Begins
Photographer: Amir Hamja/Bloomberg
By

China’s regulatory crackdown threatens to reverse a surge in underwriting fees for U.S. investment banks like Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley.

Companies based in China have been the most prolific foreign issuers of equity in New York during the pandemic. But the budding $50 billion flow of U.S. initial public offerings and secondary stock sales is at risk after new regulatory scrutiny surrounding cybersecurity firms.