APAC Investment Banking Fees Break Records Amid Pandemic

Investment banking fees in the Asia Pacific ex-Japan region rose to reach record-highs in 2020, driven most notably by a surge in Chinese capital markets.

Asia ex-Japan investment banking fees reached $28.5 billion in 2020, a 23.4 percent increase, according to Refinitiv data.

This marks an all-time high in annual fees earned since Refiniv began collecting such data in 2000 and also the first time the region surpassed European fees.

The most notable record broken was in debt capital markets which saw proceeds from APAC-domiciled issuers reach $3.1 trillion – a first time ever the $3 trillion mark was broken since Refinitv started keeping records in the 1970s.

This represents a 23.3 percent increase, breaking last year’s record of $2.5 trillion, with China making up the lion’s share at around $2.3 trillion.

The most notable surge was from equity capital markets which saw $409.9 billion of funds raised (up 66.5 percent) – surpassing the last all-time high of $342.5 billion in 2010 – while issuances grew 40.2 percent.

China once again dominated as the top issuing country, raising over $275 billion in funds, while industrials was the leading sector with a 185 percent year-on-year spike.

Mergers and acquisition activities also saw a robust climb of 10.3 percent to $1 trillion after activity in the second half of 2020 rebounded 85.5 percent and 24.1 percent in value and deal number, respectively.