Seizing Asia’s event‑driven opportunity: A compelling investment case
By Jon Withaar, Pictet Asset Management Limited
Published: 22 June 2026
Asia’s corporate landscape is experiencing a structural transformation, creating a fertile environment for event-driven investing.
Four powerful forces—corporate governance reform in Korea, shareholder activism in Japan, a resurgence in Hong Kong’s equity capital markets and a recovery in Asia‑Pacific private equity—are converging to build one of the richest pipelines of corporate events in the world.
Korea’s corporate governance transformation
South Korea has enacted the most significant corporate governance reforms in its modern history. Amendments to the Korean Commercial Code passed in mid‑2025 fundamentally strengthen minority shareholder rights and board accountability.
Directors are now explicitly required to act in the interests of all shareholders, cumulative voting is set to become mandatory for large companies, the 3% voting cap for audit committee appointments has been tightened, and hybrid shareholder meetings will be required.
These reforms complement the Corporate Value‑Up Program, launched in 2024, which provides guidelines for listed companies to voluntarily disclose corporate value enhancement plans – in turn creating a pipeline of catalyst-driven opportunities.
Table 1: Korea Commercial Code Reforms Timeline and Shareholder Impact
| Reform Element | Effective Date | Impact on Shareholder Rights |
| Expanded Director Duties | July 2025 | Immediate legal standing for shareholders |
| 3% Voting Cap Extension | July 2026 | July 2026 Enhanced audit committee independence |
| Mandatory Cumulative Voting | September 2026 | Minority board representation |
| Hybrid Shareholder Meetings | January 2027 | Improved shareholder accessibility |
Japan’s shareholder activism revolution
Japan has emerged as the world’s second busiest market for shareholder activism, surpassed only by the US and accounting for 22% of all global campaigns in 2025.1 This reflects fundamental changes in corporate governance and capital allocation.
The Japanese market’s structural characteristics make it particularly attractive for activism: extensive cross-shareholdings being unwound, significant cash hoards on balance sheets, improving corporate governance codes, and a regulatory environment increasingly supportive of shareholder engagement.
Crucially, the activists are achieving tangible results, creating opportunities for event-driven strategies to capture value. Activists won 75% of contested director seats in 2025, up from 65% in 2024, indicating increasingly effective campaigns and greater minority shareholder support.2
The activist focus on capital efficiency is resonating with mainstream institutional investors and aligning with regulatory reforms.
Table 2: Growth in Japanese Activism Activity (2024-2025)
| Metric | 2024 | 2025 |
| Total Activist Campaigns | 102 | 22 |
| Shareholder Proposals | 336 | 398 |
| New Companies Targeted | 91 | 113 |
| Proposals with 30%+ Support | 32 | 40 |
Hong Kong’s capital markets renaissance
Hong Kong has staged one of the most remarkable turnarounds in global capital markets history, reclaiming the top spot for IPO fundraising globally for the first time since 2019.
Total equity capital markets fundraising (including IPOs, follow-ons, and convertibles) reached USD 103 billion in 2025, up 164% from the previous year.3
This robust new issuance comes alongside strong aftermarket performance, deep secondary liquidity, and sector rotation – together creating an ideal environment for event-driven strategies to capture value across IPO allocations, follow-on participations, convertible arbitrage, and special situations.
In particular, the popularity of dual A-to-H listings – where companies list in both China (A-shares) and Hong Kong (H-shares) – opens the door to arbitrage opportunities and event-driven plays around price convergence.
Asia Pacific private equity momentum
Private equity transaction activity across Asia Pacific has returned to sustained growth after several years of market adjustment. The breadth of activity across the region signals a structural rather than cyclical recovery. India delivered double-digit growth in both deal value and count in 2024, becoming a standout performer. Japan saw deal volume surge 25% year-over-year in H1 2025, reflecting increased strategic investment in technology and innovation.4 Even Southeast Asia, despite quarterly volatility, recorded improving transaction activity.5
Critically, the composition of PE activity has shifted decisively toward control transactions. This shift toward buyouts creates multiple event-driven opportunities, including secondary buyouts, sponsor-to-sponsor transactions, public-to-private deals, and corporate carve-outs.
Looking forward, the improving IPO market in Hong Kong provides an increasingly viable exit route for PE-backed companies. The convergence of easing interest rates, improving valuations, and record dry powder positions the region for accelerated exit activity through 2026.
Investment implications
The convergence of corporate governance reform, shareholder activism, renewed IPO activity and an improving private equity landscape creates an unusually fertile environment for event‑driven investing in Asia.
The sheer volume of corporate events—record activism campaigns in Japan, historic ECM issuance in Hong Kong, and robust PE transaction activity regionwide—ensures a deep pipeline of catalyst-driven opportunities. Unlike markets where events are episodic, Asia now offers structural, sustained activity across multiple geographies and event types.
Event-driven strategies can capture value across diverse situations:
- Activist campaigns and proxy contests in Japan
- IPO allocations and aftermarket trading in Hong Kong
- Follow-on offerings, block trades, and convertible arbitrage
- PE secondary transactions and sponsor-to-sponsor deals
- Public-to-private transactions and take-privates
- Merger arbitrage and corporate restructurings
- This diversity provides natural portfolio diversification and reduces single-strategy risk.
The sophistication of market participants has increased dramatically. Leading global activists, blue-chip PE firms, and institutional-quality ECM deals dominate the landscape. This reduces event risk and increases the probability of successful outcomes.
Regulatory environments across the region have become increasingly supportive of capital markets activity. Japan’s corporate governance reforms, Hong Kong’s streamlined listing procedures and A-to-H initiatives, and regional PE-friendly policies all support sustained activity levels.
With strong aftermarket performance in Hong Kong IPOs, high activist success rates in Japan, and improving PE exit multiples, the risk-reward profile for event-driven strategies appears highly attractive.
For investors seeking to capitalise on these themes, the time to position is now. The momentum is building, the pipeline is robust, and the opportunity set has never been more compelling.
1 Lazard. (2026, January 4). Annual review of shareholder activism 2025. Lazard Research & Insights. https://www.lazard.com/research-insights/annual-review-of-shareholder-activism-2025/ - & Pictet Internal Data
2 Computershare. (2025). 2025 Japan AGM season review: Activist campaign success rates. Computershare Research.
