CICC rebuilds IPO pipeline to focus on ‘most promising’ deals

[BEIJING] China International Capital Corporation (CICC) is rebuilding its pipeline of initial public offerings (IPOs) and conducting thorough due diligence as scrutiny has grown after a boom in Hong Kong share sales.

The current deal surge has been a “big challenge” for investment banks and there’s now a focus on “the most promising deals”, CICC president and chief financial officer Wang Shuguang said in a Bloomberg Television interview on Monday (Jan 26). 

The comments come as China’s securities regulator is considering tightening the criteria for mainland companies to sell shares in Hong Kong, after an offshore fundraising boom raised concerns over deal quality.

With more than 350 companies having submitted IPO applications to the Hong Kong Stock Exchange, investment banks are under pressure to balance deal flow with investor protection. 

CICC, the top arranger of IPOs in Hong Kong last year, expects 2026 to be another strong year for share sales, though there will be fewer mega deals since most of those have already come to the market, according to Wang. 

CICC shares are up about 61 per cent in Hong Kong over the past year. 

There are a lot of companies with a value of about 100 billion yuan (S$18.2 billion) in the pipeline, according to Wang. These kind of companies will come to Hong Kong, together with lots of promising new economy companies, he noted. 

For firms that are promising, but currently immature, CICC is encouraging founders to wait for a better opportunity and the next market window rather than rush to list, he said, adding: “I fully believe there will be a slow bull market in the coming years.”

Wang noted that he expects interest from global investors in Chinese firms to continue to grow following a series of strong post-listing performances. More than 40 per cent of cornerstone investors in recent CICC-led offerings came from outside Asia and mainland China, according to the firm’s internal analysis of order books.

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CICC has expanded its research coverage, establishing a database of 6,000 early-stage Chinese tech companies. The bank estimates that 300 of these enterprises could become IPO candidates within five years following competitive screening.

Talent retention remains a strategic focus for CICC amid industry-wide competition. The bank recruits more than 300 fresh graduates annually. 

Wang said that many former employees join client companies in senior roles such as CFO or board secretary, creating a valuable alumni network that drives future business opportunities.

He also welcomed a consolidation in China’s securities industry in order to build globally competitive firms. CICC recently agreed to acquire Cinda Securities and Dongxing Securities in a US$16 billion share deal. The merger is largely complementary and has expanded the firm’s regional and institutional reach, Wang added. 

Overseas, CICC is pursuing selective expansion into Central Asia, the Middle East, Africa and Latin America, initially focusing on capital-light investment banking services to manage costs and ensure profitability, according to Wang. BLOOMBERG