Private capital gets more bang in China as economic reforms step up

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Private firms have overtaken state-owned companies this year for the first time as the biggest drivers of investment banking revenues in China – a sign of how Beijing’s reforms are transforming private capital’s role in the world’s second-largest economy.

Nimble and boasting efficient management, these private firms are taking advantage of the Internet industry boom and business expansion ambitions to take a bigger share of the deal activity compared with state-owned enterprises (SOEs).

So far this year, about 78 percent of the total value of Chinese stock market listings, rights issues and other deals has come from the private sector, Dealogic data shows.