China investment banking fees rise as APAC mergers sink

China led regional banking revenue with $3.63b, while targeted transactions dropped 60%.

Asia-Pacific (APAC) dealmaking was uneven in the year-to-date in the first quarter of the year (Q1 2026), with bond issuance holding up better than mergers and acquisitions.

Investment banking fees fell in several major markets, whilst equity capital markets activity improved sharply in parts of the region in Q1 2026. By country, China led investment banking fees with $3.63b, up 5% year-on-year during the period. 

Australia ranked second with $486.7m, down 20%, followed by South Korea at $249.2m, down 27% in Q1 2026. India recorded $231.4m, a decline of 31%.

Financial companies generated the largest investment banking fees by sector at $1.40b, though this was down 16% from a year earlier. 

Government and agencies followed with $1.34b, down 5%. Industrials rose 6% to $726.2m, whilst materials increased 42% to $424.8m.

Targeted M&A activity was led by China, with $53.59b in deals, although this was down 60% from a year earlier. Australia recorded $22.59b, up 41%, whilst India reached $16.09b, down 44%.

Amongst sectors, high technology led M&A with $33.99b, up 59%, followed by industrials at $26.10b, up 85% in Q1 2026.

Equity capital markets activity was strongest in China, where issuance reached $37.77b, up 43%. 

Hong Kong rose 291% to $1.47b, whilst Singapore increased 905% to $2.67b. By sector, high technology ECM volume rose 152% to $17.31b, whilst materials increased 130% to $9.66b.

Debt capital markets remained the largest pool of activity in Q1 2026.

APAC excluding Japan bond issuance totalled $1.2 trillion in the first quarter of 2026, down 2.7% from a year earlier. 

China accounted for $938.0b, or 79.6% of regional proceeds in Q1 2026. Government and agency bond issuance rose 53.5% to $630.1b, whilst financial institution issuance increased 18.5% to $330.3b.

CITIC led APAC excluding Japan debt capital markets bookrunning with a 6.0% market share and $70.7b in related proceeds.