A study from the bank and the global accountancy firm examines trends building the corporate powerhouses of the future in Asia – important data for wealth managers to track.

A report by KPMG and HSBC predicts that while a repeat of the record-breaking private investment levels in 2021 is unlikely, early figures for 2022 suggest that this year is on target to beat 2020 and 2019 funding levels in the Asia-Pacific region.

Australia, Malaysia and South Korea have already seen deal values pass or nearly surpass 2020 totals, the report, entitled Emerging Giants in Asia Pacific, said.

The study, issued today, examines new economy businesses across the region with strong potential to impact the global business landscape over the next decade. More than 6,472 technology-focused startups with valuations of up to $500 million were studied across 12 markets, with 10 leading emerging giant companies identified in each market.

The report also names 100 leading "Emerging Giants" within the overall Asia Pacific region. Among these, in first place, was BioMind, a mainland China health technology firm operating in areas such as oncolology, and using AI and machine learning; BrightChamps, an India-based AI business that focuses on education; HIPAC, a mainland China e-commerce group; HuoMaoTV, an e-sports and gaming firm; and InterGlobe Technology Quotient, an India-based software-as-a-service business.

Beyond traditional sectors associated with new economy businesses such as fintech or software-as-a-service, the report identified around 120 technology-related industry subsectors among these businesses, with blockchain, smart city, and sustainability and ESG segments being most prominent. Additionally, six out of the 12 markets studied had average valuations of 300 million or more among their leading “emerging giants”.

“Emerging giants in Asia Pacific excites us because we see the start-up ecosystem as complimentary to the established end of the financial services industry: they’re a source of innovation, and invigorate both local and regional economies with their dynamism,” Surendra Rosha, co-chief executive of HSBC Asia-Pacific, said.

Such comments point to how the Asia-Pacific region remains a wealth creation hotspot, driving major international and domestic banks to set up offices and build teams to tap into a rising cohort of high net worth and ultra-HNW individuals.

Among other findings, the report said that growing pressure for an ESG focus in business and investment strategies in order to meet climate targets is likely to fuel an explosive demand for green technologies and services across every industry, creating significant opportunities for “Emerging Giants”.

Navigating complex regulations and hiring talent are big challenges, the report said.

Asia-Pacific Emerging Giants: Value of leading companies
Combined valuation of the leading 10 Emerging Giant companies in each of 12 Asia-Pacific markets, in US dollars.

Source: KPMG and HSBC analysis of Pitchbook data of 6,472 Emerging Giant" companies in Asia-Pacific with valuations of $500 million or more