Global Equity Capital Markets: Which Regions Are Heating Up?

Global equity capital markets in 2025 are experiencing one of the most dynamic shifts in over a decade. While North America remains an anchor for volume, it is Asia and Europe—alongside select emerging markets—that are capturing the lion’s share of global attention and inflows. Equity investors, issuers, and dealmakers alike are rebalancing their strategies to capture the momentum in regions that are benefiting from structural reforms, policy tailwinds, and renewed economic confidence.

At GBM, where we connect the global investment community through networking and events, we have observed first-hand how capital flows are redirecting toward new and revitalised markets. Below, we examine the regions that are heating up and why they are becoming the focal points for equity market activity in 2025.

Asia: Hong Kong and Mainland China Lead the Charge

Few stories in global markets have been as dramatic this year as the resurgence of Hong Kong and China. After a challenging few years of sluggish growth, capital outflows, and investor caution, the tide has decisively turned.

The Hang Seng Index has gained more than 19% in the first half of 2025, a performance fuelled by a combination of government stimulus, a sharp rebound in tourism, and valuations that global investors increasingly consider too attractive to ignore.

Foreign capital is flowing into undervalued Asian equities at scale, particularly as Western technology stocks are widely perceived as overbought and stretched on valuation metrics. The revival of secondary market activity is being matched by renewed momentum in primary equity markets, with IPO activity starting to return to pre-pandemic levels.

For global investors, Asia’s appeal lies not only in its near-term rebound but also in its long-term fundamentals. With expanding consumer bases, accelerating technological adoption, and supportive policy frameworks, Hong Kong and China are reasserting themselves as indispensable components of any global equity portfolio.

Europe: Germany and Italy Shine Amid Regional Recovery

Europe, often regarded as a mature and steady market, has been anything but predictable in 2025. Two standout performers—Germany and Italy—have led the way in delivering strong equity returns, supported by favourable sectoral and macroeconomic dynamics.

Germany’s DAX index has risen 18% year-to-date, buoyed by the strength of its automotive sector, especially in electric vehicle (EV) exports. Stable energy costs and fiscal support from European Union institutions have further underpinned confidence. The combination of industrial resilience and macroeconomic stability has drawn investors back in large numbers.

Italy, meanwhile, has delivered more than 15% growth in its benchmark equity index, supported by significant funding for green and digital infrastructure and a revitalised banking sector. These themes—particularly sustainability-driven investment and financial sector reform—have added new dimensions to Italy’s traditionally underappreciated equity markets.

Broadly across the region, easing inflation and a return of both consumer and business confidence have created fertile ground for equity outperformance. European markets are increasingly attracting international issuers and investors who previously favoured London or New York, further underlining the trend toward geographical diversification in capital flows.

Emerging Markets: India, Brazil, Vietnam, and South Africa in the Spotlight

Beyond Asia and Europe, several emerging markets are stepping into the limelight as global investors reallocate capital to capture higher growth opportunities.

• India continues to enjoy strong inflows, driven by its rapid digitalisation, robust domestic consumption, and pro-market reforms. IPO volumes are soaring, with local exchanges increasingly preferred for sizeable domestic and cross-border listings.
• Brazil is seeing renewed interest as commodity markets stabilise and structural reforms enhance its investment case. The São Paulo exchange is recording higher primary market activity, particularly in infrastructure and energy.
• Vietnam has emerged as a rising star, with its manufacturing-driven growth story resonating with investors seeking exposure to supply chain diversification beyond China.
• South Africa, while historically volatile, has seen significant inflows as investors seek undervalued opportunities and benefit from currency stabilisation measures.

What unites these markets is the dual dynamic of secondary outperformance and robust primary issuance. Global funds, both institutional and sovereign, are not only allocating more to emerging markets but are also participating in IPOs and follow-on offerings. This growing appetite underscores the shift in confidence toward exchanges in Asia and Latin America as credible and competitive hubs for equity fundraising.

North America: Still Dominant in Scale, but Growth is Modest

While much of the spotlight has shifted elsewhere, North America remains the largest equity market by volume. The United States continues to dominate in terms of liquidity, depth, and global influence. IPO activity, particularly in technology, healthcare, and infrastructure, is recovering after a subdued period, and capital markets remain vibrant.

However, the relative growth trajectory has been more modest compared to Asia and emerging economies. For global investors seeking outperformance, the US is still a core market, but the scale of inflows tilts toward other regions where valuations and growth prospects appear more compelling.

Key areas of fundraising in North America remain tied to the energy transition and infrastructure investment, themes that align with broader global capital reallocation strategies. These are longer-term plays that will continue to attract interest but do not offer the short-term upside currently seen in Asia and Europe.

Market Outlook: Divergence and Realignment

Looking across regions, several themes stand out for the rest of 2025:

1. Diversification Drivers 

   Investors are deliberately allocating more capital to regions with differentiated growth drivers, whether in Asia’s consumer economy, Europe’s industrial strength, or emerging markets’ demographic dividends.
   
   

2. Rise of Local Exchanges

    Stock exchanges in Asia and Latin America are becoming more attractive for IPOs, reducing the dominance of traditional hubs like London and New York.
   
   

3. Sectoral Tailwinds 

   Green infrastructure, digitalisation, EV adoption, and energy transitions remain cross-regional themes shaping equity issuance and performance.
   
   

4. Capital Realignment  

   The world’s equity capital flows are undergoing a structural shift, with Asia and emerging markets now commanding the lion’s share of attention.

The implications for issuers and investors are profound: global equity markets are no longer dominated by one or two regions. Instead, a multi-polar investment environment is emerging, where cross-border connectivity and market access are critical success factors.

Why GBM Matters in This Landscape

At GBM, our role is to support the infrastructure of global capital markets by creating platforms where investors, issuers, and intermediaries can meet, exchange insights, and forge deals across borders.

As equity capital continues to realign, GBM provides the networking opportunities and knowledge-sharing events that help market participants understand where the next opportunities lie and how to access them.

Our conferences, forums, and dealmaking platforms are uniquely positioned to connect decision-makers from established markets like the US and Europe with the fast-growing hubs of Asia, India, Latin America, and Africa. By doing so, we don’t just observe these shifts—we actively help shape them.

Partnering with Global Banking and Markets

If your institution is looking to:

• Expand into new regions where capital inflows are accelerating,
• Access the latest intelligence on equity market trends,
• Build relationships with global investors and issuers, or
• Explore cross-border IPO, M&A, and capital raising opportunities,

Global Banking and Markets (GBM) is your partner of choice.

We provide the ecosystem, insights, and connectivity that global capital markets need today. Whether you are seeking to raise capital, allocate investments, or position yourself at the forefront of emerging opportunities, GBM is here to connect you with the world.