Asia is heading into 2026 with a healthy pipeline of equity deals, driven mainly by China and India, but rising concerns over inflated technology valuations could challenge the pace of new listings next year.
Equity capital market activity across the region has rebounded, with fundraising this year registering the first annual increase since 2021. Hong Kong has emerged as the standout hub, reclaiming its status as the preferred overseas listing venue for Chinese companies and recording one of its strongest years in recent times. India has also remained a major contributor, sustaining a steady flow of initial public offerings despite a marginal slowdown from last year&rsquo;s record levels.
Market participants say China&rsquo;s economic stabilisation and India&rsquo;s ongoing growth story have jointly powered Asia&rsquo;s equity revival. Looking ahead, both markets are expected to anchor regional deal activity, with a long queue of companies already preparing to go public or seek secondary listings.
Investor behaviour has also played a key role in boosting Asian markets. Growing unease over global trade friction and geopolitical uncertainty has prompted many funds to rebalance portfolios away from heavy U.S. exposure, directing capital toward Asia in search of diversification and structural growth. Strong performances in regional stock indices have reinforced investor confidence and encouraged large issuers to tap the market.
However, the outlook is not without risks. Recent volatility in global technology shares has reignited debate over whether the artificial intelligence boom has pushed valuations too far. A number of AI-focused companies in Asia, ranging from language model developers to chipmakers and digital infrastructure firms, are lining up for market listings, potentially worth billions of dollars.
While Asia still offers a deep pool of tech assets yet to access public markets, analysts caution that a correction in AI-related stocks could spill over into broader equity markets and dampen sentiment. In such a scenario, investors may turn more selective, favouring businesses with stable cash flows over high-growth, high-valuation technology plays.
India, with comparatively lower exposure to pure AI bets, could benefit if risk appetite cools globally. Still, any widespread reassessment of AI valuations may weigh on pricing and expectations for deals across the region, making 2026 a year that tests whether Asia&rsquo;s equity momentum can withstand shifts in global tech sentiment.

Asia IPO Boom Faces AI Valuation Reality Test

Strong China and India listings drive growth, but AI bubble fears may shape Asian markets

Asia IPO Boom Faces AI Valuation Reality Test

Strong China and India listings drive growth, but AI bubble fears may shape Asian markets

December 6, 2025 | 24:20 IST