Asia’s equity capital markets are poised for another strong year as a surge of high-profile IPOs from China and India attracts global investors seeking diversification beyond U.S. assets. In 2025, Asian ECM activity—including IPOs, follow-ons, and convertible bonds—reached $267 billion, marking a 15% increase from 2024 and the first annual rise since 2021, according to LSEG data.
Hong Kong led the region with $75 billion raised, more than triple last year’s total and the highest since 2021, reinforcing its status as the preferred listing hub for Chinese companies. India followed with $19.3 billion in IPO fundraising, slightly below its 2024 record but excluding the ongoing $604 million IPO of e-commerce firm Meesho. Analysts expect India’s IPO market to generate up to $20 billion in 2026, supported by strong economic expansion and rising corporate earnings. Meanwhile, more than 300 companies have filed for Hong Kong listings, signaling sustained pipeline strength.
Experts say China’s recovery and India’s growth are powering Asia’s equity issuance. Major offerings expected in 2026, such as India’s Reliance Jio Platforms and China’s Zhongji Innolight, could significantly boost volumes. Investors are increasingly shifting capital to Asia amid uncertainty surrounding U.S. trade and geopolitical policies. This trend has contributed to strong market performances, with Hong Kong’s Hang Seng Index rising nearly 30% and India’s benchmark climbing about 11% this year.
Large deals—including CATL’s $5.3 billion Hong Kong secondary listing and Zijin Gold International’s $3.5 billion IPO—reflect deep regional liquidity and interest in frontier technologies. However, concerns about inflated AI valuations present potential risks. Planned listings from Chinese AI developers and chipmakers may face scrutiny if global AI market volatility intensifies. While some investors see India as a safer, AI-light market, a broad AI-driven selloff could affect pricing and valuations across sectors.


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