The best allocation point in a turbulent market! JPMorgan Chase: "Asian trading" is about to rise

Capital is flowing out of the United States, with active trading and a surge in mergers and acquisitions in the Asia-Pacific region.

On May 29, according to media reports, Paul Uren, head of JPMorgan Chase's Asia-Pacific investment banking business, stated in an interview in Hong Kong that although he and his team hold a cautious outlook on the Asia-Pacific transaction prospects this year, Asia is benefiting from capital flowing out of the United States, and M&A activity in the Asia-Pacific market is very active this year. Data shows that the total value of M&A transactions in the Asia-Pacific region has increased by 32% year-on-year.

Uren revealed that JPMorgan Chase is seizing this opportunity to recruit in the Asia-Pacific region and is actively communicating with clients about M&A transactions and other businesses. During unstable market periods, it is actually a golden time to acquire other companies; those who dare to make acquisitions during turbulent times often earn more in the end.

M&A transactions in the Asia-Pacific region surge year-on-year, with Japan becoming a hotspot

During the interview in Hong Kong, Uren stated that the entire team is actually very busy, engaging in intensive communication with clients, including discussing how to diversify businesses or supply chains through M&A. They are also discussing strategies for selling non-core assets, financing, and debt refinancing.

Uren pointed out that Asia is benefiting from the global capital shift from the United States to other regions. This trend is prompting JPMorgan Chase to increase hiring in the Asia-Pacific region, especially in Japan, where there may be a series of large-scale transaction opportunities.

He specifically mentioned that for companies with strong balance sheets, now, during this market instability, is actually a good time to acquire other companies:

“Historical experience also proves that those who dare to make acquisitions during turbulent times often earn more in the end.”

According to data compiled by Bloomberg, the M&A activity in the Asia-Pacific region is very high this year, with the total value of M&A transactions in the region increasing by 32% year-on-year so far this year.

Among them, Japan has become one of the most active M&A markets this year, driven by factors including corporate governance reforms in Japan that have created many opportunities, as well as the increasing activity of private equity funds and more shareholder activism. Shareholder activism means that shareholders are no longer passive but are starting to voice their opinions and pressure companies to change decisions.

Now, more and more shareholders are "pressuring" the board of directors (i.e., shareholder activism), and Uren revealed that one of the key focuses for JPMorgan Chase is teaching boards "how to protect themselves," especially in the Asia-Pacific region.

“Japan and Australia have become hotspots, with the number of related cases increasing rapidly. Our investment banking team is now spending a lot of time helping boards recognize their weaknesses and how to respond to shareholder pressure.”

Uren stated that another hot market is India. Previously, the Indian market was cautious due to high valuations. Now, with some market bubbles partially deflated and valuations returning to rational levels, it has attracted more attention. Uren noted that India is now very popular, with almost all global private equity funds listing India as one of their priority investment targets