This is the second consecutive month-on-month decline in the number of deals in the region. In addition to that, the deal volume also declined lower than the monthly average of the first quarter of 2022, the firm said.
The reduction can be attributed to the spike in Covid-19 cases and recession fears surfacing over the key markets.
Key markets in the APAC region saw a sharp decline this month. New Zealand witnessed the sharpest decline of 42.9% while other key markets including China, Japan, South Korea, Singapore, Indonesia, and Malaysia observed a reduction in the deal volume by 14.8%, 42.7%, 2.3%, 9.9%, 36.4% and 40% respectively.
On the contrary, a few markets saw growth in terms of deal volume in May. Hong Kong saw a growth of 21.7% followed by Australia (15.2% growth) and India (3.2% growth).
The deal types saw a decline in volume as well. Deal volume for Private equity came down by 21.8%. Meanwhile, volume for M&A and venture financing deals also declined by 15.5% and 9.9% respectively.
“Deal activity in the APAC region has been bearing the brunt of dampened deal-making sentiment on the back of a rise in the number of COVID-19 cases in some of the key markets such as China and looming recession fears,” said Aurojyoti Bose, lead analyst at GlobalData.