Hong Kong has long served as a gateway connecting capital, companies and investors across Asia and beyond. Today, that role is becoming even more important as dealmakers navigate a market shaped by AI-driven investment themes, shifting geopolitical dynamics and evolving capital flows. 

At a recent Datasite Dealmakers Dialogues Hong Kong event, industry leaders from investment banking, private capital, infrastructure and legal advisory discussed the forces reshaping deal activity across the region.  

The panel featured Adrian Aw, Managing Director and Head of APAC at PEI Global Partners; Calvin Lam, Director in the M&A team at BNP Paribas; Henley Leong, Director in the Private Capital Advisory Group at Mizuho Greenhill; and Vanisha Harjani, Partner in the Corporate and Finance Division at Loeb Smith. 

While the discussion covered multiple sectors and markets, participants pointed to an environment where capital remains available, but investors are becoming more selective about where and how they deploy it. 

Hong Kong dealmakers navigate evolving cross-border capital flows 

One of the clearest trends discussed during the event was the continued movement of capital across borders, particularly as investors seek new opportunities beyond their home markets. 

In infrastructure and energy, demand remains strong for assets linked to power generation, renewables and digital infrastructure. Markets such as India, Australia, Japan and Korea continue to attract significant investor interest, while Southeast Asia is benefiting from growing demand for energy and data-center capacity. At the same time, Asian investors are increasingly looking beyond domestic markets in search of scale and growth opportunities. 

For Hong Kong-based advisors and investors, these trends underscore the importance of cross-border expertise. As capital continues to move across markets in search of growth, infrastructure and technology opportunities, dealmakers are increasingly being called on to connect investors, companies and opportunities across jurisdictions. 

The panel also highlighted the continued momentum behind digital infrastructure. Data-center development across Southeast Asia, particularly in Malaysia and Thailand, is generating substantial financing and M&A activity as demand for AI-related computing capacity continues to grow. 

Yet investors are also becoming more conscious of concentration risk. While AI remains a powerful investment theme, many limited partners are encouraging managers to look beyond data centers and explore adjacent opportunities in transportation, electrification and broader infrastructure assets. 

A new chapter for cross-border M&A 

For years, many cross-border transactions involving Chinese companies were driven by market access. According to the panel, that dynamic is changing. 

In the automotive sector, Chinese manufacturers have developed significant strengths in technology, research and development, and cost efficiency. As a result, partnerships between Chinese and Western automakers are increasingly built around complementary capabilities rather than simply providing access to the Chinese market. 

This shift reflects a broader evolution in cross-border M&A. Corporates are reassessing portfolios, reviewing where they need direct ownership and identifying opportunities to create value through partnerships, joint ventures and carve-outs. Rather than pursuing expansion for its own sake, many companies are taking a more targeted approach to growth and capital allocation. 

For Hong Kong dealmakers, this creates opportunities to advise on increasingly sophisticated transaction structures. As global trade patterns continue to evolve and regulatory considerations become more complex, strategic partnerships are emerging as an important tool for companies seeking growth while managing risk. 

The discussion also touched on the evolving regulatory landscape, including new outbound investment frameworks and increased scrutiny in certain sectors. While the long-term implications remain uncertain, participants noted that regulatory developments are likely to continue influencing how cross-border transactions are structured and executed. 

Liquidity solutions gain momentum in private markets 

Private capital was another area where panelists saw significant opportunity. 

Secondary market activity continues to expand as institutional investors actively manage portfolios, rebalance exposures and seek liquidity solutions. Large global secondary funds have raised record levels of capital, while a growing number of banks, family offices and sovereign wealth funds are participating directly in transactions. 

For advisors and investors operating across Asia, these developments are becoming increasingly important as secondary transactions play a larger role in portfolio management. As fundraising remains competitive and distributions remain a priority, both LP-led and GP-led transactions are becoming increasingly valuable tools for generating liquidity and rebalancing portfolios. 

Panelists noted that demand remains strongest for high-quality, defensive assets and businesses with less exposure to supply-chain disruption. At the same time, regulatory developments such as reverse CFIUS restrictions may create opportunities for Asia-based investors to pursue transactions facing less competition from certain international buyers. 

The discussion also highlighted the importance of efficient structuring. Offshore vehicles in jurisdictions such as the Cayman Islands and BVI continue to play a role in facilitating cross-border investments, fund structures, joint ventures and liquidity transactions, while newer applications involving digital assets and tokenized investment structures are beginning to attract institutional attention. 

Looking ahead 

The message from Datasite Dealmakers Dialogues Hong Kong was clear: deal activity is evolving, not slowing. 

AI is accelerating investment into infrastructure and digital assets. Corporates are adopting more flexible partnership models. Private capital investors are embracing secondary transactions and alternative liquidity solutions. Across all of these trends, selectivity is increasing. 

For Hong Kong dealmakers, the opportunity lies in helping investors and companies navigate this increasingly cross-border landscape. As capital flows continue to shift and transaction structures become more sophisticated, Hong Kong remains an important gateway connecting global investors with opportunities across Asia.