One of the greatest untapped markets for global banks right nowis Shenzhen, a city in southern China near Hong Kong, according toReuters. Last year, it hosted an average of one IPO per businessday—more than London, New York and Hong Kong combined.

So far, the banks, brokers and retail investors participating inShenzhen's mostly smaller public offerings have been mainly local,but China plans to create a mini-Hong Kong financial hub in thecity and ultimately aims to put Shenzhen on the level of London orNew York. A handful of global banks like Morgan Stanley andCitibank won approval to do business in China last year. Whileglobal bank's previous dealings in China via joint ventures havefocused on large offerings and privatizations of state-ownedcompanies, experts say in the future, small and medium sizedbusinesses will be the driving force for capital markets.

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