To: All, the Asian private equity industry enters 2026 with a cautious optimism, with new opportunities in key sectors still exist.

The latest "Asian Private Equity Investment Outlook 2026" published by PricewaterhouseCoopers (PwC) points out that the Asian private equity industry is entering 2026 with a cautiously optimistic attitude. Despite investors remaining wary of tariff fluctuations, geopolitical tensions, and uneven economic growth, the momentum in key industries continues to release new opportunities. The Industrial & Chemical (I&C), financial services, and Technology, Media & Telecommunications (TMT) sectors have shown resilience. This is mainly due to the rapid advancement of artificial intelligence, China's strong push for the semiconductor industry, governance reforms in Japan, and the upgrading transformation of India's initial public offering (IPO) market. A looser interest rate environment and eased liquidity constraints also promote transaction activities, with domestic capital and sovereign funds playing increasingly important roles. Tang Biao, Managing Partner and Head of Consulting at PwC Hong Kong, stated that the Asian private equity market is readjusting its pace rather than retreating. The strong growth in the Asian M&A market in 2025 indicates a return of investor confidence, with large strategic transactions thriving in the region. However, there are signs of a slowdown in acquisition activities, primarily due to the uncertainty of tariffs dampening investor sentiment, reflecting a more cautious approach in fund deployment in the market. The I&C and TMT sectors are resilient, showing that investors are responding to global challenges, with AI integration and cutting-edge technologies paving the way for new growth paths. Looking ahead to 2026, Tang Biao mentioned that despite investors remaining vigilant of tariff uncertainty, interest rate changes, and geopolitical tensions, resilient industries are emerging with new opportunities. The I&C industry benefits from the demand for semiconductors and advanced battery materials, while the TMT industry is reshaping under the drive of AI integration and digital transformation. He also pointed out that the extension of life expectancy is driving the development of the longevity economy, opening up new opportunities for elderly healthcare such as Siasun Robot & Automation, health monitoring systems, and AI models that can predict cardiovascular risks. With improved liquidity from IPO exits, along with governance reforms enhancing transparency, the Asian private equity market is moving towards a selective recovery and sustainable growth.