ASIFMA 2026 Asia Pacific Capital Markets Survey

Expansion sentiment rises across Asia

Asia Pacific continues to present strong growth opportunities for global financial institutions.

The 2026 ASIFMA Asia Pacific Capital Markets Survey, conducted in collaboration with Asia Securities Industry and Financial Markets Association (ASIFMA), reflects insights from leading firms operating across 13 markets, including Australia, Chinese Mainland, Hong Kong SAR, India, Japan, Singapore and Southeast Asia. The survey is based on responses gathered between January and April 2026, capturing industry views during a period of heightened geopolitical uncertainty.

The findings highlight how firms are strengthening their presence in the region and refining their approach to capture long-term growth.

Sustained commitment to growth and a more focused expansion approach

Expansion sentiment across Asia-Pacific has reached its highest level since the survey began.

Approximately 66 percent of firms plan to expand their business in the region over the next three years, compared with 40 percent in 2023-24. Additionally, the proportion of firms that are not expanding or remain uncertain has declined to historically low levels. This reflects continued confidence in region’s key role in global capital markets activity.

Firms are taking a more structured approach to growth, with a greater emphasis on stability, execution and long-term value creation.

Firms continue to invest, with a more targeted and disciplined approach. Expansion activity is mainly focused on strengthening positions in existing markets rather than entering new jurisdictions. Investments are focused on scaling operations, strengthening product offerings and deepening client relations.

Participants highlighted the value they place in the Asia Pacific region, as both a key growth engine and a region of relative stability, supporting their long-term strategies. They also emphasized the ongoing efforts across individual markets to strengthen two-way dialogue with industry to ensure competitiveness while managing respective risks

David Lonergan

Partner, Head of Financial Services Governance, Risk & Compliance Services, Hong Kong SAR, KPMG China

ASIFMA 2026 Asia Pacific Capital Markets Survey

Discover deeper insights on:

expansion priorities across markets
key growth sectors and opportunities
the evolving role of ESG, digital assets and AI

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Competition for capital is intensifying

As more firms expand in the region, competition for capital is increasing.

Investments are directed toward markets offering strong financial infrastructure, liquidity and regulatory clarity. Established financial centres such as Singapore, Hong Kong SAR and South Korea continue to attract significant attention.

Capital allocation decisions are becoming more selective, with firms prioritising opportunities that offer greater certainty of execution and consistent returns. This is contributing to a more concentrated investment landscape, with a focus on markets that support scale, efficiency, and stability.

Market momentum across the region

Perceptions of Asia-Pacific markets continue to evolve.

Markets with clear policy direction and consistent regulatory engagement continue to attract stronger investment interest. Financial hubs such as Singapore, Hong Kong SAR and Australia remain strong and continue to rank highly for ease of doing business

Large markets such as India and Chinese Mainland are also gaining momentum, supported by their scale and long-term growth potential.

Southeast Asia remains strategically important. While some near-term challenges related to regulation and market complexity persist in some jurisdictions, the long-term outlook remains positive, particularly in markets such as Vietnam.

Strategic themes shaping growth

cyclone

Artificial intelligence

Artificial intelligence is being adopted to enhance operational efficiency and strengthen control functions.

Adoption is currently concentrated in back-office automation, which account for nearly 33 percent of AI use cases across firms. Other key areas of application include data analysis and risk management.

Adoption in client-facing use cases remains more gradual, reflecting the need for appropriate governance frameworks. Firms are focusing on scalable and practical applications that deliver measurable business value.

memory

Digital assets

Firms are engaging with digital assets through a structured and measured approach.

Activity is focused on regulated instruments, including tokenised securities, with greater participation in markets that provide clear regulatory guidance such as Singapore and Hong Kong.

This reflects a broader shift toward institutional adoption supported by governance, risk management and regulatory clarity.

eco

ESG priorities

Sustainable finance remains an important consideration in expansion strategies.

Across the region, ESG frameworks are becoming more aligned, supported by ongoing policy development and net-zero commitments. Firms are placing greater focus on implementation, embedding ESG considerations into investment decisions and operating models.

Data availability, reporting standards and carbon market development remain the most cited challenges across markets.

Implications for Asia Pacific

Asia Pacific remains central to global capital markets growth strategies.

Firms are becoming more selective in their investment approach, focusing on scale, strengthening existing positions, and prioritising markets that offer clarity and stability.

This reflects a more disciplined phase of growth, with greater emphasis on execution and long-term outcomes.