Sou Hu Cai Jing·2025-12-26 01:40Core Insights - The A-share market is expected to gradually recover by 2025, leading to significant improvements in the IPO business for securities firms, although a profound industry shift is underway with a reshuffling among leading firms and a rational return to underwriting fee models [1][4]. Group 1: IPO Underwriting Performance - In 2025, the total IPO underwriting amount by 34 securities firms reached 1250.44 billion, nearly doubling compared to 2024's 673.53 billion, although it remains about one-third of 2023's total of 3556.37 billion [5][6]. - The top ten securities firms in IPO underwriting saw significant growth, with the lowest increase being 78.36%, while firms ranked seventh to tenth did not achieve the same growth [6][7]. - CITIC Securities led the underwriting amount in 2025 with 234.69 billion, followed by Guotai Haitong at 190.30 billion, indicating a substantial gap between the top two firms [11][12]. Group 2: Changes in Industry Dynamics - The merger of Guotai Junan and Haitong Securities created a "giant" that surpassed CITIC Securities in the number of underwritings but still lags in underwriting amount and income [2][9]. - CICC's IPO underwriting amount surged nearly threefold to 138.05 billion, marking a significant return to the top five, reflecting a competitive landscape among leading firms [3][8]. - The high-profit era for investment banks is over, with a more rational fee structure and a balanced business layout emerging in the industry [4][15]. Group 3: Underwriting Fees and Revenue - The underwriting fees have significantly decreased, with a large project raising over 3 billion potentially yielding only 50 million in fees, contrasting sharply with previous standards [3][15]. - CITIC Securities reported an underwriting and sponsorship income of 11.36 billion, exceeding Guotai Haitong's 9.76 billion by 1.6 billion, highlighting the income disparity between the two firms [13][14]. - The trend of lower fees is attributed to various factors, including reduced project numbers, lower fundraising scales, and regulatory guidance aimed at lowering costs for companies [17].