In 2014, Asia Pacific corporates find themselves in a unique position. Comparatively sheltered from the turmoil of the the financial crisis, equity market valuations across the region are above pre-crisis levels and continue to show an upward trend. The foundations of which are underpinned by year-on-year earnings growth that highlight China & Japan as having considerable room for growth. This is coupled with a very strong IPO market which has facilitated the largest IPO in history raising 25bn (USD) for Alibaba Group Holding Limited (NYSE:BABA).
These factors combined illustrate that corporates are in a unique position holding substantial amounts of capital.
Deployment of this capital presents a perfect storm as corporates look to harness equity and debt markets to raise capital, engage in M&A activity and focus on unlocking value.