Market Insights Financial Corporate Finance

Investment Banking - Eastern Asia

Eastern Asia

The Investment Banking market market in Eastern Asia is expected to achieve a revenue of US$7.31bn in 2024.
This projection indicates an annual growth rate (CAGR 2024-2028) of -7.42%, which would result in a total projected amount of US$5.37bn by 2028.
When compared globally, it is worth noting that the United States leads with the highest revenue of US$119.10bn in 2024.
In the bustling Investment Banking industry in Eastern Asia, Japan stands out as a dominant force, with its robust corporate finance market and strong presence of global financial institutions.

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Analyst Opinion

The Investment Banking market in Eastern Asia is experiencing significant growth and development driven by various factors.

Customer preferences: Customers in Eastern Asia are increasingly seeking personalized and tailored investment banking services to meet their specific needs and goals. They prefer working with institutions that offer a wide range of financial products and services, including wealth management, advisory services, and capital raising.

Trends in the market: In Japan, there is a growing trend towards mergers and acquisitions (M&A) as companies look to expand their market presence and diversify their portfolios. This has led to an increased demand for investment banking services to facilitate such transactions. Additionally, the rise of technology-driven financial services is reshaping the market landscape in South Korea, with a focus on digital banking solutions and fintech innovations.

Local special circumstances: In China, the government's push for financial market liberalization and increased foreign participation is creating new opportunities for investment banks. As the Chinese economy continues to grow, there is a greater need for capital raising and investment advisory services. In Hong Kong, its status as a leading financial hub in the region has attracted a diverse range of international clients, driving the demand for cross-border investment banking services.

Underlying macroeconomic factors: The overall economic growth in Eastern Asia, coupled with favorable government policies and regulatory reforms, is fueling the expansion of the investment banking market. As the region becomes more integrated into the global economy, there is a greater need for sophisticated financial services to support cross-border transactions and investments. Additionally, the increasing wealth and disposable income of individuals in countries like Singapore and Taiwan are driving the demand for wealth management and asset management services offered by investment banks.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.