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 61 new campaigns launched in the third quarter alone, shareholder activism is no longer seen as disruption — it is powering transformation, stronger governance, and smarter strategy

The third quarter of 2025 marked a turning point for global markets, as shareholder activism reached its busiest level ever with 61 new campaigns. Far from being a sign of instability, this surge is increasingly viewed as a force for renewal, reshaping how companies govern, grow, and compete.

Once seen as purely adversarial, activist investors are now playing a constructive role in corporate life. Instead of clashing with management, many campaigns focus on long-term value creation, operational efficiency, and sustainable growth. This shift signals a broader acceptance that engaged shareholders can help accelerate necessary change.

High-profile examples include major mergers, portfolio streamlining, and leadership shake-ups across industries. Some companies have announced strategic reviews, refreshed boardrooms, and adopted sharper business priorities after activist engagement. These actions are not destructive — they are calculated adjustments designed to ensure resilience in uncertain times.

The influence of activism is clearly visible in boardrooms. By September, investors had already secured 98 board seats worldwide — a sharp increase compared to last year. In addition, 25 chief executives stepped down under activist pressure, often paving the way for leadership better aligned with evolving strategies. Such moves illustrate how investors are reshaping corporate direction from within.

Importantly, today’s activism is no longer about quick wins. Many campaigns call for spin-offs, digital adoption, sustainability initiatives, or capital reallocation — proposals designed to strengthen competitive positioning over the long term. Constructive engagement is replacing confrontation, with investors often acting more like advisors than opponents.

For capital markets, this wave of activism brings discipline and accountability. Companies now recognize that good governance and responsiveness are essential, not optional. Proactive communication, transparent reporting, and long-term planning are becoming the norm as boards adapt to a more engaged investor base.

Even as the number of campaigns breaks records — nearly 200 already this year — they remain selective and focused. Many initiatives aim to improve performance in specific areas rather than overhaul entire companies. This measured approach ensures that activism drives meaningful progress without destabilizing operations.

Critics sometimes argue that activism fuels volatility or short-termism, but recent trends suggest otherwise. Successful campaigns often lead to stabilizing measures, such as restructured portfolios, ESG commitments, or renewed capital strategies. The goal is sustainability, not chaos.

Looking forward, many companies are preparing to preempt activist campaigns by refreshing strategy internally, reviewing leadership effectiveness, and strengthening dialogue with shareholders. By adopting this proactive stance, boards reduce the risk of conflict while ensuring alignment with investor expectations.

Ultimately, the record-breaking pace of activism in 2025 highlights an evolving reality: engaged shareholders are not tearing companies down — they are helping to build them up. What was once seen as disruptive is now a driver of transformation, fueling stronger governance, sharper focus, and renewed competitiveness.

This is not the story of boardroom battles — it is the story of corporate renewal in action.