Brokers' new issues sputter on low profits

City will remain the world's largest market for offerings due to capital flows from the mainland

Financial analysts predict the mainland brokerage sector will remain positive despite a recent market sputter in which mainland financial institutions have had to lower their initial public offering target price.

China Merchants Securities Co, the investment banking and brokerage arm of State-owned conglomerate China Merchants Group, plans to raise as much as $1.47 billion in a share issue in Hong Kong, while markets are showing a strong risk-averse sentiment.