Full Breakdown
Global Financial Firms Shift Expansion Toward South Korea, Tempering China, India
6/30/2026, 1:09:36 PM
Expansion Shift
A June 2026 ASIFMA-KPMG survey of 34 multinational banks, asset managers and securities firms finds two-thirds plan to grow their Asia-Pacific presence over three years. Singapore, Hong Kong, South Korea, China, Japan, India and Taiwan draw about half of expansion interest, with South Korea’s share rising sharply.
Survey Background
The ASIFMA-KPMG questionnaire, released in June 2026, asked respondents to rank markets by planned investment, product-line expansion and regulatory risk for 2026-2029.
Primary Actors
ASIFMA, the securities-market association, and KPMG conducted the survey. ASIFMA chief executive Peter Stein led the commentary. The 34 surveyed firms are banks, asset managers and securities houses.
Expansion Interest & Data
- Two-thirds of firms plan Asia-Pacific expansion in the next three years, with South Korea interest now ~50 % of respondents, up from 21 % a year earlier.
- China interest steadies at ~40 %, down from earlier peaks.
- Singapore, Hong Kong, South Korea, China, Japan, India and Taiwan account for about half of interest; India’s regulatory frictions are noted despite its rise to 5th place in ease-of-doing-business rankings (from 8th).
Impact and Implications
The findings point to a Tier-1 capital distribution that lessens reliance on any single market. Singapore’s appeal stems from its neutrality, while South Korea’s undervaluation and roadmap toward World Government Bond Index (WGBI) inclusion are expected to boost bond activity. The cautious stance on China and India reflects heightened sensitivity to regulatory complexity and reshapes cross-border investment flows.
Official Responses
ASIFMA said competition has intensified, noting that China’s former dominance is being challenged by destinations. The association highlighted Singapore’s strategic positioning as independent of powers and pointed to South Korea’s emerging equity and bond opportunities tied to policy. It also acknowledged that while China and India offer commercial prospects, their regulatory environments pose challenges for foreign firms.
Criticism & Opposition
Firms cite China’s capital controls, data-privacy rules and geopolitical tensions as deterrents to deeper exposure. In India, difficulties with know-your-customer standards and restrictions on non-deliverable forwards are identified as frictions that dampen expansion enthusiasm.
Verbatim Quotes
- “Competition within Asia has intensified. Five years ago, China was the dominant destination for foreign capital. Today, we are seeing more Asian countries compete for a share of Tier-1 global flows,” — Peter Stein, ASIFMA Chief Executive
- “it is not tied to China, the U.S., or any single ASEAN bloc” — Peter Stein, ASIFMA Chief Executive
- “There is also a clear expectation of increased activity in the bond market, supported by the government's road map toward WGBI inclusion,” — Peter Stein, ASIFMA Chief Executive
- “Participants recognise the commercial opportunity in Asia's two largest markets but view their complex regulatory environments as a challenge,” — ASIFMA
