(Bloomberg) — Deal activity in Asia-Pacific is set to rise over the coming quarters, driven by strength in markets such as India, Taiwan and Japan, as well as a strong deal pipeline from China, according to Jan Metzger, head of Citigroup Inc.’s Asia-Pacific investment banking division.
Most read articles on Bloomberg
“We continue to see a very busy time across Asia, particularly in Taiwan and India,” Metzger said in an interview on Bloomberg TV on Wednesday. “We're seeing a big increase in activity.”
Metzger said demand is strong in India because the country is growing rapidly, while in Taiwan new technology companies are creating new ways to engage with customers, he added.
“Economic activity and innovation in Asia are at their highest levels ever, creating more attractive companies than ever before,” Metzger said.
Deal activity in China has been slow recently, but with a strong pipeline and new unicorns, deal activity is expected to pick up, he said.
“If the next bull market comes, it's going to be long and high,” Metzger said of China, adding that it could be six months to a year away.
The investment banker said he expected many large Chinese companies to choose Hong Kong as the listing location, but that the United States was a “very promising” destination for entrepreneurs.
Citi has been the top-placed investor in Asia-Pacific equity capital markets so far this year, according to data compiled by Bloomberg. The bank has played a key role in convertible-bond deals for companies including Alibaba Group Holding Ltd. and Lenovo Group Inc. It also played a leading role in the listing of South Korean carmaker Hyundai Motor Co.'s Indian unit.
Metzger said another bright spot for dealmaking was the Middle East, where Citi has been “very active” in supporting investors looking for new kinds of technologies and opportunities in areas such as electric vehicles in China.
He said the bank is looking to add headcount in certain markets and sectors in preparation for a potential uptick in transactions. A Citi spokesman confirmed that Metzger was referring to Japan and India, and that the bank is open to the health care, technology and consumer sectors.
–With assistance from Yvonne Man and David Ingles.
Most read articles on Bloomberg Businessweek
©2024 Bloomberg LP
