Morgan Stanley Edges Out Goldman Sachs as Asia-Pacific’s Top ECM Bank in Q2 2025

The most recent data in Asia’s equity capital markets show a shift in leadership. For the quarter ending June 30, 2025, Morgan Stanley managed USD 7.03 billion in ECM transactions in the Asia-Pacific region, surpassing Goldman Sachs, which managed USD 6.07 billion. [1] [2] This marks Morgan Stanley’s strongest quarterly performance since Q2 2021 and highlights its ability to seize market momentum as investor sentiment revived. [1] [2] Meanwhile, Goldman, while still highly competitive, saw a modest decline from its prior quarter’s output. [2]

Beyond the quarterly figures, Morgan Stanley’s regional strategy appears to be yielding longer-term gains. Its Asia revenue for full year 2024 was USD 7.64 billion, now relevant as a base for its ambition to hit USD 10 billion within a five-year horizon. [3] In the race for ECM dominance, Morgan Stanley has leveraged its capability to take large equity underwriting risks, strong placements across IPOs, follow-on offerings, and convertible bonds, especially in Hong Kong and China. [2] [4]

Goldman Sachs has responded with internal restructuring aimed at boosting coordination across its Asia-Pacific operations. Since September 2024, it combined its M&A, financial & strategic investor, and introduced a new Capital Solutions Group. [1] Yet despite these changes, as of mid-2025, it ranked first in Asia-Pacific ECM league tables (annualized basis) with ~USD 12 billion in deals but trails Morgan Stanley in quarter-to-quarter momentum. [1]

Strategically, Morgan Stanley’s ascent suggests global investment banks can reclaim ground in Asia’s ECM space through product flexibility, willingness to take risk, and strong local execution, despite competing pressures from geopolitical risk, local incumbents, and regulatory constraints. Core risks include China economic volatility, tightening regulation, and competition from domestic banks or regional rivals. Open questions remain around whether Morgan Stanley can sustain current momentum, whether Goldman’s integration will turn into rival performance gains, and how macro factors (rates, China-US tensions) may re-shape the opportunity set.