The Wall Street lender is targeting senior-level additions in Japan, particularly in sectors such as technology, media and telecommunications, while also preparing for expansion in China pending final regulatory approval for its wholly owned securities business, Kaustubh Kulkarni, Citi’s Asia head of investment banking, said on Monday.

Despite geopolitical tensions, including disruptions linked to the Iran conflict, Citi is pressing ahead with regional growth plans as deal activity across Asia remains relatively resilient, driven by corporate restructuring, governance reforms and strategic acquisitions.

“Japanese companies are becoming a lot more creative and open for strategic conversations,” Kulkarni said, pointing to governance-driven changes in corporate structures and rising shareholder activism as key drivers of stronger client engagement.

He said the bank wants to close coverage gaps in Japan by hiring senior bankers who can provide the level of client access and leadership that local companies value, while improving coordination between domestic and international teams to win more cross-border M&A mandates and sponsor-related transactions.

Some emerging markets such as Indonesia and the Philippines, which are more sensitive to energy shocks, have seen slower initial public offering and capital markets activity, Kulkarni said. By contrast, deal momentum in Japan, South Korea and Taiwan has remained stronger because those markets are less directly exposed to such volatility.

Citi’s global investment banking fees rose 12% year-on-year in the first quarter, reflecting stronger advisory and capital markets activity across several regions.In China, the bank is awaiting final approval from regulators to operate its own securities unit, which would house its onshore investment banking business.

Kulkarni said the firm had already entered hiring mode for China, with a focus on bankers capable of covering “new-age” and high-growth companies, though he declined to provide details on specific appointments.

Hong Kong’s offshore equity capital markets have also shown a strong recovery, with more than HK$140 billion ($18 billion) raised through initial public offerings by late April, marking the strongest start to a year since 2021 and representing an increase of more than 400% from the same period a year earlier.

Citi is also considering a third senior hire in Australia to complete a broader regional buildout after appointing two senior bankers in healthcare and natural resources to strengthen leadership coverage in those sectors.

Kulkarni became Citi’s sole head of Asia investment banking after former co-head Jan Metzger left in March to join Standard Chartered.

The expansion signals Citi’s intention to reinforce its advisory franchise in Asia as competition intensifies among global banks for regional M&A and capital markets mandates, particularly in Japan and Greater China where corporate restructuring and cross-border transactions .

With changing interest rate cycles and evolving economic dynamics, diversification and prudent risk management are increasingly seen as essential portfolio strategies.

At a recent market outlook discussion for private banking clients, senior banking leadership highlighted that while the US dollar continues to play a central role in global finance, overconcentration can expose investors to unnecessary volatility.

Currency movements, shifting capital flows, and regional growth trends are prompting a broader reassessment of how investors allocate across foreign exchange markets.

Asian currencies, in particular, are being viewed as cost-effective funding options due to their relatively low borrowing costs.

This environment creates opportunities for investors to hedge existing positions while exploring regional currencies that appear undervalued when compared with historical averages.

Low interest rate benchmarks in parts of Asia have made funding in local currencies more attractive for sophisticated investors.

Such conditions can potentially enhance returns when combined with disciplined hedging strategies and careful monitoring of market movements.

The discussion also reflected growing interest in Asia’s role within the global financial system.

As regional economies continue to deepen their capital markets, currencies from Asia are increasingly integrated into international investment portfolios.

Investors are paying closer attention to regional benchmarks and overnight rates, which provide insight into liquidity conditions and short-term funding costs.

These indicators help market participants assess relative value between currencies and make informed decisions on hedging and diversification.

Another theme highlighted was the importance of preparing for sustained market volatility.

Geopolitical developments, evolving trade patterns, and shifts in monetary policy are expected to influence currency markets well into the year ahead.

Rather than viewing volatility solely as a risk, many investors are approaching it as a factor that can be managed through balanced exposure and forward-looking strategies.

Hedging currency risk, especially for portfolios heavily weighted toward a single currency, is increasingly seen as a practical step rather than a defensive one.

Asia’s financial infrastructure has also been expanding to support greater cross-border currency use and settlement.

Enhanced clearing capabilities and deeper financial linkages are making it easier for investors to access and manage regional currencies efficiently.

The growing international use of Asian currencies reflects broader economic trends, including trade integration and expanding regional investment flows.

As these currencies gain wider acceptance, investors are finding more tools and opportunities to incorporate them into diversified strategies.

Market participants were also reminded that currency strategy should align with broader investment objectives and risk tolerance.

Rather than short-term speculation, a measured approach focused on long-term resilience was emphasized throughout the discussion.

Overall, the outlook suggests that investors who remain flexible and open to regional opportunities may be better positioned to navigate uncertainty.

By combining hedging techniques with selective exposure to low-cost Asian currencies, portfolios can be structured to balance stability and potential growth.