FIRST China accounted for 82.5% of APAC bond proceeds worth US$1.7t
Money raised from IPO plunged 41% compared to 2021
Investment bank fees in Asia-Pacific fell 9% in H1 2022 INVESTMENT BANKING
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nvestment banking fees in Asia Pacific, excluding Japan, reached an estimated $15b in the first half of 2022, down 9% compared to the first six months of 2021, according to data compiled by Refinitiv. Refinitiv attributed this to the region “witnessing the strongest period [in investment banking activities] last year.” Equity capital markets (ECM) fees fell 42.9% after last year’s best-ever first-half period, for a total of $3.2b.
Money raised from initial public offerings (IPO) plunged 41% compared to 2021, although this was due to last year being the strongest-ever first half period that Refinitiv recorded. In total, APAC still logged US$50.4b to account for 70.5% share of the total IPO raising gathered globally. Notably, Chinese IPOs drove the bulk of the activity, raising US$30.5b; however, this is 49.9 lower than in 2021.
Debt capital markets surpass 2020 record numbers Debt capital markets (DCM) underwriting fees rose 13% to $7.9b, surpassing the record set during the first half of 2020. DCM fees accounted for 53% of the APAC investment banking fee pool. Fees generated from completed mergers and acquisitions (M&A) hit a four-year high and totalled $1.8b, 10.5% higher than the same period in 2021. This is despite M&A volumes falling 22.2% in 2022 compared to the same period in 2021. Syndicated loan fees also dropped 7.6% and reached $2b. Primary bond offerings from Asia Pacific-domiciled issuers raised US$2t in the first half of 2022, the strongest first half period for the region in forty years. China accounted for 82.5% of Asia Pacific bond proceeds worth US$1.7t; followed by South Korea, with 4.9% or US$99.3b of the market share. Australia rounded up the top three with 4.6% market share, raising US$91.4b.
THE CHARTIST: APAC CARD MARKET TO GROW 13.7% IN 2022
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he credit and charge cards market in the Asia Pacific region is slated to grow 13.7% in 2022 on the back of economic recovery, rising consumer disposable income, and the rise of electronic payments, forecasted GlobalData, a payments and analytics firm. The credit and charge card payments value in the Asia-Pacific region registered a compound annual growth rate (CAGR) of 14.3% from $6.5t in 2017 to $12.7t in 2022, according to GlobalData’s Payment Cards Analytics. It is expected to grow further at a CAGR of 9.5% over 2022 to 25 and reach $16.7t in 2025. This is despite the adoption of
credit and charge cards being slower in the Asia-Pacific region compared to the West, noted Nikhil Reddy, senior payments analyst for GlobalData. “This is, however, gradually changing due to rising middleincome population, growing financial awareness, and banks offering lucrative benefits in terms of reward programs and instalment facilities,” Reddy said. APAC countries easing lockdown and travel restrictions will push economic activities and positively contribute to consumer spending and support credit and charge card payments growth.
APAC: Cards Payments Value (US$ trillion), 2017-25f
Source: GlobalData
ASIAN BANKING & FINANCE | Q3 2022 9
