High-net clients throughout Asia are slowly spinning in US dollar-based investments, favoring gold, cryptocurrencies and Chinese properties instead, according to UBS Group’s financial service.
“Gold is very popular,” Amy Lo, the co-head of Swiss Bank’s wealth management for Asia, Says During the new Bloomberg event held in Hong Kong on May 13.
He noted the increase in geopolitical uncertainty and continued volatility in the market as major factors behind the transfer. Investors, traditionally concentrated in US-centric properties, are now looking for greater exposure to alternative properties, including cryptoes, goods and other currencies.
Lo said that “volatility is definitely here to stay,” motivating clients to balance towards noticeable safe havens and growth opportunities in new regions.
China, after years of muted interest, also gains traction in rich ultras. Lo noted that clients who avoided exposure to China actively ask about investment opportunities.
Hong Kong’s benchmark index, heavily made up of Chinese companies, appeared as one of the world’s leading performers in 2024, which is further interest in fuel.
Bank of America’s latest funds of the survey also Shut up The global funding fund significantly reduced their exposure to the US dollar in May, which marked the largest weight position in 19 years.
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US-China’s tariff that Truce is emitting investor optimism
Christina Au-yeung, head of investment management services in Morgan Stanley Private Wealth Management Asia, told Bloomberg that a recent truce tariff between the US and China has created a revised investor optimization.
“We see the emergence of really interesting -friendly themes returning to China,” he said.
Au-yeung also pointed out a growing mindset at risk of Asian’s richest clients. The firm now recommends a balanced portfolio allocation, including a 40% fixed income, 40% equal -equal, 15% alternative and residue in cash or equivalent.
On May 11, the US and China announced an agreement to temporarily reduce tariffs on each other’s goods. As per the deal, the US will lower the tariffs on Chinese imports from 145% to 30%, while China will reduce duties to American goods from 125% to 10%.
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Bitcoin is viewed as a store of value
On a recent note, Galaxy Digital Analysts said Bitcoin is increasingly viewed As a digital value store, who noticed growing interest from institutions, funds exchanged (ETF) and even governments.
“The supply and demand dynamics of Bitcoin strengthen its area as a mature digital value store,” said Ian Kolman, co-portfolio manager at Galaxy.
Supporting this view, Blackrock leader of themmatics and active ETFs, Jay Jacobs, mentioned on April 25 that countries are increasingly different from US dollar reserves, —On —on instead of assets such as gold – and now, bitcoin (Btc) – as part of a broader reserve strategy.
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