More than half of respondents to am HSBC Global Private Banking (GPB) survey are bullish on the S&P 500, Hang Seng Index and Strait Times Index, expecting at least a 5-10% rise by end of this year.
According to survey, technology presents both risks and opportunities for investors in 2025. Notably, 44% of high-net-worth individuals (HNWIs) expect advancements in artificial intelligence and technology to create significant investment opportunities this year. On the other hand, 47% identify technological disruptions as the leading investment risk.
The HSBC Private Wealth Market Pulse Survey was conducted ahead of the private wealth sessions at the HSBC Global Investment Summit 2025 in Hong Kong. It polled 200 HNWIs in Hong Kong and Singapore to assess the impact of recent megatrends on investor sentiment across these two wealth hubs.
Geopolitical developments were cited as the next leading megatrend driving divided sentiment, with 22% of respondents viewing them as investment opportunities, while 27% considering them a risk. Overall, a vast majority of respondents (92 per cent) maintain a neutral to positive outlook for Asia’s economic prospects in 2025.
Lavanya Chari, head of wealth and premier solutions, HSBC said: “These findings come at a period when investors are seeking timely and reliable insights to help them cut through the market noise and navigate unpredictability in global financial markets.”
The survey also explored perceptions of AI’s impact on corporate earnings. While nearly 40% of respondents believe AI is an overhyped profit driver, 31% think it will enhance corporate efficiency despite increased costs. Additionally, 24% consider AI a significant contributor to earnings growth.
Meanwhile, two-thirds of investors are gravitating toward more stable income streams and investment options, with 37% of them citing fixed income as their top long-term asset class of choice in the next decade, whereas 30% chose foreign currencies and commodities for their long-term portfolios. Fifteen per cent of HNWIs believe that alternative investments offer the best long-term opportunities.
Lok Yim, regional head of global private banking, Asia Pacific, HSBC, said: “This survey shows us that high-net-worth investors are experienced in adopting a multi-asset investment strategy to capture the diversification benefits from multiple markets and asset classes.”
Geopolitical uncertainty has not eroded confidence with 43% of respondents planning to find the best long-term opportunities in North America during the next decade, followed by 28% naming Asia as their second most favourable investment destination.
To manage risk and volatility, close to half (46%) of wealthy individuals employ multiple portfolio diversification and active investment switching strategies. Investors seem to prefer the “stay invested” approach, with only 11% choosing to hold cash.
