Market Insights Financial Corporate Finance

Investment Banking - Hong Kong

Hong Kong

The revenue in the Investment Banking market is projected to reach US$1.06bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 7.48% resulting in a projected total amount of US$1.52bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

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Analyst Opinion

Amidst its position as a global financial hub, Hong Kong's Investment Banking market showcases a unique blend of traditional values and innovative trends.Customer preferences in the Hong Kong Investment Banking market are heavily influenced by a strong emphasis on relationship-based banking.

Clients in Hong Kong value long-term partnerships and personalized services, leading to a preference for tailored financial solutions and a high level of customer service.Trends in the market indicate a shift towards digitalization and technological advancements. Fintech companies are gaining traction in Hong Kong, providing innovative solutions for investment banking services.

This trend is driven by the increasing demand for efficiency, transparency, and accessibility in financial transactions.Local special circumstances in Hong Kong, such as its proximity to Mainland China and its status as an international financial center, contribute to the market's development. The close ties with China offer unique opportunities for cross-border investments and collaborations, while the city's reputation for regulatory stability attracts foreign investors looking to access the Asian market.

Underlying macroeconomic factors, including Hong Kong's strong economic growth, low unemployment rate, and stable political environment, provide a solid foundation for the Investment Banking market's growth. The city's strategic location, well-established legal system, and robust regulatory framework further support the market's stability and attractiveness to both domestic and international investors.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.