Citigroup predicts strong deal activity in 2026 in Asia Pacific

[NEW YORK] Dealmaking activity in the Asia Pacific region should be strong in 2026, particularly for mergers and acquisitions in China and India, according to Citigroup.  

Key themes include greater M&A from the Middle East into China and elsewhere as multinational companies pursue growth in important markets, while financial sponsors will be increasingly active, Citi said. 

“APAC continues to be at the forefront of MNC strategic planning given its importance as the key growth engine for the world,” Citi’s Head of Asia M&A Colin Banfield said in a statement. 

Artificial intelligence, health care, technology, media and telecommunications will dominate financing, and companies will continue to see the appeal of convertible bonds to leverage advantageous financing opportunities, according to the US bank. 

On the equity capital markets front, Hong Kong’s revival should persist and Chinese companies will continue to pursue listings in the city, Citi said. India is poised for another strong year of IPOs, with fewer deals but larger average sizes, anchored by local demand, the bank said. Multinationals are expected to continue monetising their local Indian businesses, it added.  

Japan and Australia will likely see deal activity increase, and more ECM deals may take place in South-east Asia, Citi said.

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Jan Metzger, Citi’s co-head for Asia investment banking, said the pipeline across the region is one of strongest he has ever seen. Fellow co-head Kaustubh Kulkarni added that the mix is healthy across sectors.

Separately, Citi said it has hired Alex Wong as a managing director to boost coverage of industrials and mobility. He will report to Lei Li, who heads the industrials investment banking business in Apac, according to a statement. Wong previously worked at Credit Suisse. BLOOMBERG