Jan Metzger, co-head of Japan, Asia North and Australia (JANA) and Asia South, investment banking coverage, links the rebound in activity to a more supportive backdrop through 2025, as lower rates helped close valuation gaps and brought confidence back to boards. Citi cites 2025 M&A deal value in Asia-Pacific excluding Japan rising 30% y-o-y to US$933 billion, while equity and equity-related offerings rose 38% to US$260 billion, and primary bond offerings climbed 23% to US$278 billion.
According to Metzger, deal momentum was weaker in the first half of 2025 amid volatility, before accelerating in the third quarter and into year-end, as macro conditions improved and conviction returned to dealmaking.
Against that base, Citi describes 2026 as a year where financing and advisory work broadens beyond a single theme, but remains anchored to the region’s role as a global growth engine and to a heavy pipeline of corporate actions. “The investment banking pipeline across this region is one of the strongest I have seen on record. It’s across all areas, but M&A is particularly strong,” says Metzger. Citi notes that M&A in parts of Asean in 2025 was driven by macro themes such as data centres and wealth creation, trends it expects to continue shaping boardroom priorities in 2026.
Kaustubh Kulkarni, co-head of JANA and Asia South, investment banking coverage, expects the 2026 agenda to be shaped by a mix of structural growth and policy-driven adjustments. In his view, the deal outlook is being fuelled by ongoing investment in digital infrastructure and AI, shifts in supply chains and trading relationships as countries respond to tariffs, and multinational corporations reassessing whether to double down, find partners or exit markets as the “economic environment” changes.
See also: Taiwan’s AI wealth is spilling across Asia and Singapore is positioning itself as the hub
He also points to strong consumption and GDP growth across parts of Asia, supporting new business models that require capital, alongside elevated sponsor activity across major Asian economies that can translate into more buyouts, exits, IPOs and financing transactions. “It’s also a healthy mix across sectors from consumer and healthcare to TMT, and sponsor activity will be a key theme in 2026, and we are well-positioned with recent investments in our sponsor franchise locally and globally,” says Kulkarni.
Global ECM issuance
For ECM, Citi is leaning on a recovery it says took hold in 2025. Rob Chan, head, equity capital markets syndicate, Asia, notes that global ECM issuance rose 25% y-o-y to US$950 billion, while Asia-Pacific issuance totalled US$294 billion, up 27%. IPO proceeds in the region rose 60% to US$85 billion, driven by larger listings in industrials, TMT and financial services.
See also: Is the Chinese stock market an undervalued giant?
India remains a major focus for 2026, with Citi expecting valuations and sponsor-driven exits to keep issuance flowing. In 2025, India raised about US$60 billion across more than 500 ECM deals, including roughly US$23 billion from more than 370 IPOs and about US$22 billion from blocks, Citi says. Citi attributes some of the market’s depth to domestic flows, including US$90 billion from domestic institutional investors, and sustained retail inflows via systematic investment plans of about US$3 billion a month since October 2024.
For 2026, Chan expects high equity valuations to encourage IPO and block exits by controlling shareholders and private equity, and to support primary equity issuance, with multinational shareholders continuing to monetise Indian subsidiaries. Citi’s estimate for India IPO proceeds in 2026 is US$15 billion to US$20 billion, supported by what it calls the biggest pipeline on record.
Across Asean, Citi expects Singapore and Malaysia to lead issuance again, after 2025 ECM volumes in the region rose 20% y-o-y to US$13.8 billion, supported by equity market performance in Singapore, Malaysia and Vietnam. Citi forecasts US$12 billion to US$15 billion of ECM activity across the region in 2026.
Debt issuance is also expected to remain active, particularly as issuers juggle refinancing, expansion funding and currency choices. Nitesh Dugar, head, debt capital markets, South and Southeast Asia, points to a 23% rise in APAC ex-Japan G3 primary supply to US$280 billion in 2025, with Citi expecting a further 15% to 20% expansion in 2026.
He says issuers are increasingly able to diversify funding across US dollars and improve local-currency markets such as the Singapore dollar, Indian rupee, Thai baht and Philippine peso. “We see investors coming back with the same amount of firepower, if not more,” adds Dugar, as investors take comfort from stronger corporate balance sheets and well-managed maturity profiles.
He adds that Asia’s data centre build-out is opening new funding avenues, including private credit and investment-grade bonds alongside traditional project finance, as markets such as India, Indonesia and Malaysia catch up on AI-related infrastructure investment.
