Asia Pacific capital markets gather momentum as investment needs evolve

• Asia Pacific excluding Japan ECM issuance reached US$302.0 billion in the first nine months of 2026, up 57.2% year-on-year and its highest level in five years, with China accounting for more than half of regional proceeds. 
• Technology is at the centre of the capital-raising story, but its influence extends beyond the technology sector, with some of the region’s largest transactions spanning high technology, retail and telecommunications. 
• Momentum is not uniform across the region. Singapore ECM proceeds rose 28.2% year-on-year, while India declined 1.7%, illustrating the different capital-raising conditions across Asia Pacific. 

Asia Pacific’s capital markets entered the final quarter of 2026 with considerable momentum. Equity and equity-linked issuance across Asia Pacific excluding Japan reached US$302.0 billion during the first nine months, rising 57.2% year-on-year to its highest level since 2021. This strength was broadly consistent with the global picture, with worldwide ECM activity reaching US$870.7 billion over the same period, up 62% year-on-year.

The quarterly picture, however, reveals a notable divergence. Global ECM activity slowed in the third quarter, with issuance falling 26% from Q2. Asia Pacific excluding Japan moved in the opposite direction, with equity and equity-related proceeds increasing 121% quarter-on-quarter. This continued regional strength came despite the number of offerings declining 2.1% over the first nine months, highlighting the role larger transactions have played in driving proceeds.

Technology provides an important lens through which to understand that strength. High Technology accounted for US$123.9 billion, or 41% of Asia Pacific excluding Japan ECM proceeds, an increase of 269.4% from the comparable period in 2025. 

Among the largest transactions, SK Hynix raised US$26.5 billion through its NASDAQ ADR offering, while Alibaba completed a US$10.2 billion Hong Kong placement, the largest ever primary follow-on by a HK-listed company. CXMT also came to market with a US$9.8 billion Shanghai IPO, one of China’s largest domestic listings, while Zhongji Innolight raised US$7.8 billion through a follow-on offering.

As Elaine Tan and I explored in our earlier analysis, AI is becoming an increasingly important part of the region’s investment landscape. The capital markets data adds another dimension, showing how those investment requirements are being reflected across sectors.

The implications extend from semiconductors and computing infrastructure to data centres, telecommunications and other businesses supporting the wider AI ecosystem. Rather than viewing AI as a discrete sector theme, the financing data increasingly points to it as an investment theme capable of influencing capital requirements across industries. 

Those financing requirements are not limited to equity markets. Asia Pacific’s debt markets are equally significant, although the drivers are different.

 Issuers raised a record US$4.16 trillion during the first nine months of 2026, up 3.7% year-on-year, with Government and Agency borrowers accounting for 45.2% of proceeds and Financials another 35.1%. Together, the two sectors represented around four-fifths of regional issuance. China sits at the centre of this activity. Its deep domestic bond market, sizeable government funding and refinancing requirements, and supportive onshore financing conditions have underpinned issuance across a broad range of borrowers.

Beyond these traditional drivers, corporate issuance points to some of the investment themes also shaping equity markets. High Technology bond issuance in Asia Pacific reached US$30.3 billion during the first nine months, up 19% year-on-year, providing another indication that rising investment requirements are making their way across both equity and debt financing.

The headline numbers mask important differences between markets. China accounted for 52.8% of Asia Pacific excluding Japan ECM proceeds, with US$159.4 billion raised, up 69.9% year-on-year. South Korean ECM proceeds rose 189%, while Taiwan increased 291%. 

Singapore also strengthened. ECM proceeds reached US$7.4 billion, up 28.2%, with Q3 producing US$3.9 billion, more than four times second-quarter levels. India offers a counterpoint: proceeds slipped 1.7% to US$40.8 billion, although Indian IPO proceeds increased 11.3% to US$12.5 billion, the highest first-nine-month total since records began in 1980. 

That divergence is important. Asia Pacific is not a single capital market, and the strength of the regional aggregate does not mean every market or form of issuance is following the same trajectory. 

The strength in issuance is also reflected in the underwriting rankings. China International Capital Co led the Asia Pacific excluding Japan ECM league table for the first nine months, with US$23.9 billion in related proceeds and 7.9% market share. Morgan Stanley followed with US$22.6 billion and a 7.5% share, while Goldman Sachs & Co ranked third with US$20.9 billion and 6.9%. 

Debt markets present a different competitive picture. CITIC led regional bond underwriting with US$264.6 billion in related proceeds and 6.4% market share, followed by China Securities Co and Guotai Haitong Securities.