India presents a “very clear” opportunity, said Manolo Falco, global co-head of banking, capital markets and advisory, in an interview in Mumbai. He said the New York-based lender expects initial public offerings in India as well as inbound deals in renewable energy and infrastructure next year.
Wall Street, the world’s second most populous country, is gaining traction among dealmakers as rising political tensions weighed on major plans to expand in China and rising tensions in Europe and the US. India’s main stock gauge has gained momentum this year, in contrast to most of the steep declines seen in major global markets. The country saw a record $82 billion in merger and acquisition deals in the second quarter, defying a slowdown elsewhere.
“India looks very stable and has a government that knows what they have to do,” Falco said. “The political situation in other parts of the world, and that includes Europe and probably the US and China, is a little different I would say.”
After a two-year expansion in China, global banks now face strong constraints as economic growth slows and political tensions with the US hampered bargaining. Banks including Goldman Sachs Group Inc., HSBC Holdings Plc, Credit Suisse Group AG and UBS Group AG have cut all investment banking jobs linked to China amid a drought in deals.
Citigroup is still in the process of establishing a wholly-owned investment bank in chinaIt is lagging behind its major rivals.
Falco said the firm will “definitely get better” in China if the license is approved.
“Today we don’t have it so we can’t play in the A stock market,” he said, referring to shares traded in Shanghai and Shenzhen. He said it will be an important growth market for business in China as the outlook for new share sales by Chinese companies in Hong Kong and the US remains weak.