Decree 324 on financial policies applicable to the IFC in Vietnam

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 - Governance, Risk & Compliance Services
KPMG China

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

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.