APAC Investment Banking Fees Climb 4% in 9M 2025 Driven by China, Singapore & Strong ECM, DCM, M&A Growth

The first nine months of 2025 show a solid rebound in investment banking fee income in the Asia-Pacific region, especially excluding Japan. With total fees rising to US$18.6 billion, that’s the first year-on-year increase for the period since 2021. [1][2] This contrasts sharply with downturns earlier in 2024, when fees in APAC ex-Japan saw double-digit declines and were noted as the weakest nine-month stretch since 2017. [1]

Breaking down the revenue streams highlights important divergences. Debt capital markets remain the backbone: US$10.6 billion in DCM fees, up about 15% y-o-y. Equity capital markets saw even larger percentage gains (about 48%), but from a smaller base. M&A advisory, though previously weak, rebounded strongly (~55%), signalling renewed deal activity. Syndicated lending grew modestly (~3%), suggesting limited risk appetite or perhaps capital constraints in leveraged financing. [1][2]

The regional dynamics underpinning this recovery are telling. A China volume surge—particularly in ECM and equity-linked deals—has been a key driver. Top fee earners in APAC ex-Japan are overwhelmingly Chinese banks: Citic Securities/CLSA, Bank of China, China Securities, CICC, and Guotai Haitong. [3] Beyond mainland China, markets such as Australia and India posted moderate growth, while Japan also showed fee income gains (≈9.8%). [3]

Singapore recorded especially strong performance: IB fees rose ~31.5% to US$683 million in 9M 2025. The biggest gains occurred in ECM underwriting and M&A advisory, which more than doubled from 9M 2024. However, syndicated lending in Singapore fell sharply (~29%). [3] This divergence underscores the current strength of capital markets and deal advisory over leveraged finance in certain hubs.

Strategic implications for banks operating in APAC are multiple. Institutions strong in ECM and advisory—particularly with China/Greater China exposure—are benefiting most. Those with a leveraged lending focus may see limited upside until conditions around rates, risk, and credit improve. Geographic exposure matters significantly; China’s recovery appears central to regional momentum. Talent retention, competition for deals, regulatory risk, and currency/liquidity volatility will likely feature in banks’ strategic planning for 2026.

Open questions remain: whether the China resurgence and Greater China ECM activity are sustainable into 2026; how interest rate trajectories and monetary policy tightening or loosening globally (especially in the US) might affect debt underwriting; whether geopolitical/friction risks will dampen cross-border M&A; and whether regional regulatory shifts will reshape competitive advantages.