Investment banking fees in the Asia-Pacific region, excluding Japan, derived from underwriting equities and bonds as well as advising on mergers and acquisitions have surged ahead of those in Europe and the US, propelled by growth in both M&A activities and equity capital markets.
A total of $11.9 billion worth of investment banking fees were generated in Asia Pacific excluding Japan in the first half of 2025, up 27% compared to the same period last year, LSEG data showed.
Asia Pacific (ex-Japan)’s growth comes as the US and Europe markets tracked a 5% and 11% decline in investment banking fees, respectively, during the same period. Yet, the APAC fees only accounted for 20% of the fees earned globally; Americas and Europe contributed to 53% and 22%, respectively.
Growth in both M&A activities and equity capital markets has played their part in boosting the region’s investment banking fees — underwriting fees in the equity capital markets hit $2.3 billion in the first half of 2025, up 44% from the same period last year. They were the highest first-half proceeds since 2023.
The estimated advisory fees earned in the region from completed M&A deals reached $1.6 billion, up 51% compared to last year.
The first half of 2025 saw at least 12 mega deal announcements involving Asia Pacific, with an aggregate value of $181.9 billion — the highest sum recorded since 2015.
The intended $24.4 billion takeover bid of Santos, Australia’s second-largest independent gas and liquids producer, by an international consortium led by XRG P.J.S.C. (XRG), a subsidiary of Abu Dhabi National Oil Company, emerged to be the largest M&A deal in the first half of 2025, per LSEG.
The pending sale of Hong Kong’s conglomerate CK Hutchison’s global ports business, which includes two port terminals in the Panama Canal, is yet another deal that could help boost investment banking fees.
Meanwhile, debt market fees tracked a 22% growth from 2024 to $6.9 billion, while syndicated lending fees went up by 7% from last year to $1.1 billion.
Chinese investment bank CITIC topped the regional leagues table for overall investment banking fees in Asia Pacific (excluding Japan), raking in a total of $649.1 million, accounting for 5.5% wallet share of the total Asia-Pacific investment banking fee pool.
The momentum took place amidst an eventful first half of 2025 that saw the US roll out unprecedented, expansive tariffs against its major trading partners, including China, in April. Trade tensions have continued to be one of the headwinds looming over Asia, although both China and the US have made efforts to lower their reciprocal tariffs in early May for 90 days.
As the 90-day suspension nears expiration on July 9, lingering trade uncertainty is dampening investment confidence.
Despite the macroeconomic headwinds, analysts highlighted that Asia’s stable inflation, favourable liquidity conditions, and proactive government policies could serve to mitigate potential threats to growth, according to a mid-year outlook published by asset manager Invesco. The weakening US dollar may also lead to an appreciation in regional currencies, driving capital inflows and accelerate domestic consumption.
