Perspectives from Asia Pacific
With Oliver Brinkmann and Kerwin Clayton, co-heads of Global Corporate Banking, Asia Pacific.
Kerwin: Innovation engines are alive and well everywhere, the demographics in this part of the world to support innovation and growth are fantastic. We expect the IPO market to continue to improve. There's a lot of private capital in the world now. So some companies remain private for longer rather than accessing the public markets
Oliver: We’re seeing growth across the board and life sciences and technology and healthcare and biotech. We see continued strong growth from China right now in the innovation economy. Australia has a flurry of new startups. And lastly, I would say Southeast Asia, Philippines, Indonesia, Singapore are very, very active in the fintech space.
Kerwin: Our main focus is to help companies with their regional and global ambitions. We've invested the money, the infrastructure, the systems, the people to be in most places in the world
Oliver: One of the big trends that we're seeing for subsidiary banking is the intra Asia growth. Our country desks across the region have a unique ability to advise clients when it comes to market specifics. This region, unlike many other regions I think is a bit more scattered geographically. It's very important for us to ensure we have the expertise in every single market.
Kerwin: Clients are going global at a much more rapid rate the pace at which companies are being established, small companies are becoming medium companies, medium companies are becoming larger companies has changed a lot in the last decade. So we want to form those relationships as early in their life cycle as possible.
Oliver: The firm has been around for over a hundred years in APAC. It helps clients to understand and work with an organization that has been around for a long time because, you know, corporate banking is all about relationship banking.
Oliver: The handshake between the global corporate bank, the payments business, which is often an entry product, and the investment bank. That's what makes the J.P. Morgan model so unique.
Large cap
For Asia Pacific’s largest companies – many with significant U.S. exposure – there is an increased focus on hedging strategies to manage currency market risk and interest rate volatility, as markets weigh the heightened risk of recession.
Even if the risks associated with tariffs diminish in the short term, international trade is likely to remain a central policy focus for the Trump administration. Large cap companies in APAC with complex supply chains are assessing the impact this could have on corporate earnings and managing risk accordingly.
“With current levels of market volatility, we are very focused on advising our clients, ensuring their hedging policies are up to date so they are well positioned for any further market turbulence,” said Oliver Brinkmann, co-head of Global Corporate Banking, Asia Pacific.
Large companies are also increasingly turning to debt capital markets (DCM) to strategically manage their finances, issuing corporate bonds to raise capital, or turning to the syndicated loan market to access capital for specific projects or acquisitions.
“Our clients are taking a proactive approach to optimize their financials as they navigate potential changes in the interest rate, inflation and trade environment,” said Brinkmann.
While major M&A decisions and activity are on hold for now, corporates are still actively investing and planning for the future. Intra-Asia growth is picking up, with strong corridors developing between China, Korea, Japan, Singapore and Thailand in particular. Major market reforms in Japan have improved corporate governance, driving greater shareholder value at a board level, with outbound investments, acquisitions, spin-offs and shareholder activism all on the rise.
"We’re supporting hundreds of Japanese corporates and multinational companies with their banking and payments needs and we’ll continue to build out our teams on the ground to match the market need," added Brinkmann.
Source: Dealogic, data correct as of the end of April 2025
Japan related M&A has grown steadily since 2010, with record volumes in 2024 and a strong start to 2025.
Mid cap
For mid cap companies in the region, it is a time of accelerated growth – with notable increases across deposits and loan exposure. While the macro-outlook may be uncertain for now, companies are still positioning for expansion long-term.
"Corporates are focused on growth. They're focused on going to new geographies and our clients are focused on seeking the right support – so the fact that the [deposit and loan] trend line remains positive is very good for the outlook of the business in the long term," said Kerwin Clayton, co-head of Global Corporate Banking, Asia Pacific.
Growth in the midcap sector is being driven by changes in technology, healthcare and consumer industries, which benefit from local revenue sources.
China and India are regional bright spots for rapid tech and Artificial Intelligence (AI) expansion, as well as for healthcare, where infrastructure is developing to meet rising demand in these markets.
Private market expansion has also been a key theme for this segment. Japan and Australia have both seen rapid growth in the private equity space, particularly in the technology sector, as data centers continue to expand to support the rapid growth of AI in the region and around the world.
“As we look ahead, private capital is extremely important in this part of the world because it offers clients another avenue in terms of capital access,” said Clayton.
“There’s a lot more capital coming to market right now. J.P. Morgan recently committed an extra $50 billion of capital from its balance sheet to direct lending – some of that will go into APAC markets, so that’s very good news for us,” said Clayton.
J.P. Morgan is committing
$
0 billion
in direct lending from its balance sheet to meet demand in the rapidly growing private credit market.
Innovation
Economy
Innovation Economy as a sector includes companies of all sizes, from startup to large cap as a result of the boom in AI and tech industries in APAC.
China and India rank as the world's second and third largest innovation ecosystems, following the U.S. and both countries benefit from high levels of digital penetration.
“The demographics in this part of the world to support innovation and growth are fantastic,” said Clayton.
Emerging industries such as humanoid robotics, where AI is powering machines that could be used in industrial manufacturing or service sector jobs in the future are also growing in China.
“We see continued strong growth from China in the Innovation Economy in sectors such as biotech and next-generation robotics,” said Clayton.
Venture capital investors and companies considering IPOs are closely watching current market conditions for the right time to come to market, while private lending remains an important funding option.
In India, private credit has become increasingly relevant for companies in the Innovation Economy space, as it allows smaller firms without the same access to international markets to grow much more rapidly.
“Direct lending, private credit and venture capital financing are all very relevant for the Innovation Economy space in India. India and China are dominating the sector and we are seeing Indian companies starting to go global pretty quickly with the backing of private markets,” said Brinkmann.
Source: J.P. Morgan, UN
India’s working age population will continue to grow, peaking at around 59% in 2041.
Subsidiary Banking
For corporates with expanding footprints across Asia, cross-border banking solutions and foreign exchange hedging have become even more vital to overall cash management strategies.
Intra-Asia growth is gaining momentum in this sector, as global and local corporates look to set up in new markets, establish a new regional base or diversify their supply chains.
“Our country desks across the region have a unique ability to advise clients when it comes to market specifics. Examples would be in locations such as Thailand, Korea or Malaysia, where you have a different set of regulatory or capital requirements. Having a presence on the ground that can give you that in-depth service and advice is key,” said Brinkmann.
In an increasingly complex trade environment, multinational corporations are developing parallel or alternative supply chains and production hubs to mitigate potential disruptions, particularly in Southeast Asia and India.
"India and Southeast Asia continue to attract strong investments due to favorable demographics and manufacturing shifts," said Clayton.
With greater demand, supply chain imbalances and aging populations in other parts of APAC, technology solutions such as automation and AI will be used to address workforce shortages and boost productivity.
“While geopolitical tensions pose risks, there are emerging opportunities in new markets such as Southeast Asia and the Middle East. Companies across the region are also looking at ways to strengthen their balance sheets and mitigate earnings volatility through proactive equity raises and interest rate hedging,” added Clayton.
is set for accelerated trade growth over the next five years. Vietnam, Indonesia and the Philippines are projected to rank among the
top 0 globally
in both trade-growth speed and absolute volume increase.
Source: Altman, Steven A. & Bastian, Caroline R. (March 2025). DHL Trade Atlas 2025. DHL Group.
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