Wall Street investment banks posted record profits in mainland China last year, with Goldman Sachs, Morgan Stanley, and JPMorgan all hitting new highs. The surge came from trading and brokerage income rather than traditional investment banking, as global investors returned to the world's second-largest economy amid market volatility.

Trading desks benefited from uncertainty, with China's slower growth and trade tensions creating opportunities for market-making activities. JPMorgan reported its China business grew 20% annually for two consecutive years, while Morgan Stanley saw advisory income jump from Rmb123mn to Rmb312mn ($46mn). The onshore IPO market remained subdued, limiting investment banking revenues across most foreign players.

European rivals lagged significantly behind their US counterparts. HSBC posted net profit declines to Rmb102mn ($15mn), and Deutsche Bank's Zhong De venture recorded losses of Rmb93mn. UBS stood out among European banks, more than quintupling profits on Rmb1.3bn ($191mn) in brokerage revenues after gaining full ownership approval.

China's 2020 regulatory relaxation allowing full foreign ownership of securities firms paved the way for this recovery. However, other Western professional services including asset managers and law firms continue struggling to gain market share, suggesting trading remains the primary entry point for foreign financial institutions.