Hong Kong investors most eager in Asia to beat markets – but temper return hopes: report
Hong Kong investors are Asia’s most ambitious stock pickers, but they have much more subdued return expectations than regional peers swept up in enthusiasm over artificial intelligence, according to a survey by a global asset management firm. Some 95 per cent of Hong Kong respondents said they wanted to outperform the market, the highest proportion in Asia, where the average stood at 85 per cent,…
A survey by Natixis Investment Managers reveals that Hong Kong investors are the most ambitious stock pickers in Asia, yet they maintain more tempered return expectations compared to their regional counterparts. A remarkable 95% of Hong Kong respondents expressed a desire to outperform the market, outpacing the 85% average across Asia.
Hong Kong investors anticipate long-term returns of 12.3% above inflation, lower than the regional average of 17.3%, as a recent 18-month rally fueled by the AI boom has inflated these expectations. Financial advisers in Hong Kong estimate realistic long-term returns at 8.8%, which is 40% higher than their current estimates, compared to the 84% and 110% gaps observed in Singapore and South Korea, respectively.
Dave Goodsell, executive director at Natixis Centre for Investor Insight, attributes these more measured expectations partly to the strength of Hong Kong's local equity market and the improving real estate landscape, which has moderated investor enthusiasm over the past year. The Hang Seng Index achieved a 28% gain in 2025, its best annual performance since 2017, but has since fallen over 8%.
In contrast, South Korean and Taiwanese benchmark equity indices have repeatedly set record highs due to soaring global demand for AI chips. Hong Kong's economic fundamentals have also shown signs of stabilisation, with the city's IPO market raising a record HK$388 billion (US$49.4 billion) in the first nine months of the year, and residential property prices rising about 7% through August.
The survey polled 750 individual investors with at least US$100,000 in investible assets in Hong Kong, Japan, Singapore, South Korea, and Taiwan. Concerns about a potential market downturn rank highest among Hong Kong investors, followed by inflation and interest rates. Notably, US long-term bond yields have reached their highest level since 2002, dampening sentiment in the Hong Kong stock market, as Financial Secretary Paul Chan Mo-po noted.
Despite these challenges, Natixis remains optimistic about risk assets, increasing its allocation to US equities to the maximum permitted level within its model portfolios, citing the start of third-quarter earnings season and continued AI support. The simultaneous surge in bond yields and equity prices is described as "quite unusual" by Natixis head of global market strategy, Mabrouk Chetouane.
A significant 73% of respondents across Asia describe themselves as conservative or moderate investors, while 76% prioritize safety over performance when forced to choose.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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