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

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.

“China’s increased oversight of overseas listings by Chinese companies, announced by the State Council on July 6, could halt unicorn listings in 2H in Hong Kong and ...