This is the lowest H1 figure in the region since 2016.

The Asia-Pacific region, excluding Japan, recorded a 25 percent year-on-year (yoy) decline in investment banking fees to US$9.3 billion in the first half of 2024.

This was the lowest H1 figure in the region since 2016, based on a report by the London Stock Exchange (LSEG) released.

Fees generated in the region accounted for 16 percent of total fees earned global; IB fees from America accounted for 55 per cent, and Europe, 24 per cent.

Equity capital markets underwriting fees were down 52 per cent on the year to US$1.6 billion in the region – the lowest since 2013. Its debt capital market fees fell 5 per cent to US$5.5 billion, while syndicated lending fees tumbled 39 per cent to US$1.2 billion, compared to H1 2023.

The estimated advisory fees earned from completed mergers and acquisitions (M&As) were also down 28 per cent on the year to US$964 million in the region.

Dealmaking activity for the region, excluding Japan, also fell 22 per cent on the year to US$268.7 billion – marking the lowest semi-annual total since H1 2013.

Target Asia-Pacific M&A came to S$226.8 billion in transactions, down 23.8 per cent from a year ago, based on LSEG’s data.

Most of the dealmaking activity involving the region targeted the industrial sector, which accounted for a 16.8 per cent market share worth US$45 billion. This is also down 42.4 per cent from H1 last year.

The high-technology sector, at 14.5 per cent market share, recorded US$39.1 billion in deals, inching up 1.4 per cent on the year. The materials sector captured 12.7 per cent market share worth US$34 billion, down 40.3 per cent from a year ago.

Meanwhile, the consumer products and services, and healthcare and media and entertainment sectors recorded double-digit percentage growth from last year in terms of deal value, said LSEG.

Private equity-backed deals targeting the region rose 15.1 per cent yoy to US$52 billion. While it is the highest start to the year since 2022, LSEG noted that the number of deals fell 45.1 per cent on the year.

The region’s equity and equity-related offerings for H1 2024 amounted to US$82.6 billion, down 30 per cent from the previous year, representing the lowest H1 period since 2012.

While Asa-Pacific IPOs accounted for 28.7 per cent of global IPO proceeds, Chinese IPOs captured 11.8 per cent, raising US$5.8 billion, down 81.7 per cent from a year ago.

While convertible bonds raised US$13.9 billion, up 2.7 per cent yoy, the number of convertibles fell by 68.9 per cent.

Issuers domiciled in the Asia-Pacific raised US$1.9 trillion in bond proceeds in H1 2024, inching down 1.4 per cent from a year ago.