Major global banks that expanded their Equity Capital Markets (ECM) teams in Asia during a period of sluggish mergers and acquisitions and financing activity are now seeing those moves drive profit growth as business activity picks up. Data from London Stock Exchange Group (LSEG) shows that ECM fees in Asia (excluding Japan) have reached $1.9 billion so far this year, a 75% increase from $1.1 billion during the same period last year. Full-year ECM fee income for Asia in 2025 is estimated at approximately $5.5 billion. To capitalize on this market upswing, banks are expanding their teams or rehiring staff previously laid off. The Asian equity issuance market revived last year as Chinese issuers accelerated their fundraising, and there are no signs of a slowdown yet. Deutsche Bank, which closed its equity sales and underwriting business in Asia-Pacific in 2019, began rebuilding its ECM team starting in 2021, even when market conditions were unfavorable. According to LSEG data, Deutsche Bank's ECM fee income so far this year is about $18.9 million, up 30% year-on-year, with approximately $5.6 million coming from IPO projects. In 2023, Deutsche Bank hired several coverage bankers from Credit Suisse, which was acquired by UBS Group AG, including Nora Yeung Shuk Ting, who co-leads Deutsche Bank's Asia-Pacific ECM business alongside Melody Ngan. Melody Ngan stated, "China has been and will continue to be the largest part of the Asia-Pacific ECM market, so naturally we are focusing our efforts where we can have the most impact. We have been strategically strengthening our entire ECM platform, which positions us well to capture opportunities from the recent market recovery." UBS Group AG has been the standout performer in Asia's ECM market in recent years. So far this year, UBS's ECM fee income is $91.4 million, more than double the $37.3 million from the same period last year, with $43.6 million from follow-on offerings and $43 million from convertible bond issuances. Following its acquisition of Credit Suisse, UBS has also reinforced its presence in the Indian market. UBS had closed its global banking business in India in 2021, shifting client coverage to its Singapore team; post-acquisition, it integrated Credit Suisse's approximately 25-person investment banking team in India and obtained an Indian banking license in 2024. HSBC is winding down its ECM operations in other markets to focus on Asia. LSEG data indicates HSBC's ECM fees for 2026 year-to-date are around $36 million, mostly from follow-ons and convertible bond issuances. HSBC appointed John Huang as Head of ECM for Asia last year, while he continues to serve as Head of Strategic Equity and Financing for Asia. According to sources, HSBC hired Karen Chen this year, who was previously a sponsor principal at JPMorgan. Sources note that to act as an IPO sponsor in Hong Kong, a bank must employ a sufficient number of registered sponsor principals. Société Générale is expanding its ECM business, focusing on the US and Asia, while leveraging its cash equities and research joint venture with AllianceBernstein. Anvita Arora, Co-Head of ECM at Société Générale, said the bank plans to expand in Asia, aiming to grow its Asia ECM team to 4-5 people over the next year or so, with a focus on India, Hong Kong, and mainland China. Reports suggest Barclays is hiring in India to expand its cash equities business, and it may restart its ECM operations in the country. LSEG data shows Barclays's ECM fee income in Asia this year is $23.4 million, largely due to its partnership with Australian boutique investment bank Barrenjoey, with $17.2 million from follow-ons and $5 million from convertible bonds. However, bankers note that building a full ECM platform from scratch is challenging. A banker from a global bank commented, "Building an equity sales business is relatively easy to some extent, but establishing a true ECM business—including originating and executing IPOs and block trades—is actually very difficult." Competition for talent has become more critical as the Hong Kong Securities and Futures Commission (SFC) raises concerns about the quality of listing documents. The regulator has pointed out that some sponsor principals lack sufficient experience and capability and has limited each principal to overseeing a maximum of five IPO projects simultaneously.
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