Individual investors in Asia Pacific (Apac) have increased their cash savings in 2025, with some reducing their investments due to concerns over continued market volatility.
This is according to Fidelity International’s Asia Pacific Investor Study of over 6,500 individual investors across mainland China, Hong Kong, Taiwan, Singapore, Japan, and Australia, conducted in May 2025.
While most investors in the region recognise the importance of staying invested for the long term, “many are adopting a more cautious stance, underscoring the need for resilient strategies that can withstand market fluctuations and support long-term outcomes,” the study said.
It found that 43% of Apac investors surveyed have increased their cash savings, while 39% have increased their investments.
Citing concerns over further volatility and weakening market confidence after several turbulent years, 19% of those surveyed have reduced investments. This caution was most pronounced in Hong Kong and Taiwan, where a quarter of investors reported cutting back on their investing.
Hong Kong equity markets have rebounded in the past 18 months but have yet to reclaim previous market highs set in 2021.
Mixed reactions to volatility
The study also found that 62% of investors would hold steady if there was a 10% drop in one day for their investments, 17% would sell, and 21% would buy more.
Japanese (70%) and Hong Kong (69%) investors showed the strongest tendency to hold, while 30% of mainland Chinese investors said they would sell in this scenario. Taiwanese (29%) and Australian (27%) investors were more inclined to “buy the dip”.
In the event of a 10% one-day gain, 57% of Apac investors said they would hold, while 31% would sell to lock in profits.
Investors in Japan (72%) and Singapore (60%) were most likely to hold, while 41% of those in mainland China and Hong Kong would take profits, according to the study.
Charlotte Chan, head of HK global platform solutions & head of Hong Kong, at Fidelity International said: “The results showcase that investors continue to be highly engaged in investing, but at the same time, they are adopting a cautious approach and are sometimes losing sight of the big picture.”
“At a regional level, they are more likely to save cash rather than invest it, and when investments increase rapidly, there is a significant impulse to take profit.”
“While everyone’s financial situation is different, it is important that investors remain focused on the fact that strong returns are driven by a long-term and consistent investing approach throughout market cycles.”
The study also found that while most investors top goals for saving are for retirement (52%), the majority of investors (55%) said their primary investment horizon is less than three years.
Chan said: “The study shows that while Apac investors are clear about their financial goals, many have yet to fully harness the benefits of long-term investing.”
She added: “With clear expectations for further market volatility ahead, having diversified portfolios and maintaining disciplined saving and investing will be key.”
