Despite regulatory crackdown, Chinese investors look to Hong Kong, US to diversify
Stocks in mainland markets have underperformed this year, with the Shanghai Composite Index down 3.9 per cent year to date as of Wednesday
Around half of Chinese investors with assets over 1 million yuan (US$147,703) plan to increase their investments in Hong Kong and the United States over the next 12 months to diversify their portfolios, despite Beijing’s crackdown on cross-border brokerages, according to a new survey.
The findings come after the DBS Treasures Affluent Investor Survey polled 1,617 individuals in Hong Kong and mainland China with at least HK$1 million (US$127,525) or 1 million yuan in assets in their respective markets, between June and July.
According to the survey, Hong Kong and the US remained the top investment destinations for mainland investors, with 51 per cent and 41 per cent of respondents planning to increase their allocations in the respective markets in the next 12 months.
Mainland China was chosen by 40 per cent of local investors as their preferred investment market.
DBS did not see “any material impact” of the tighter controls on its business, as it fully complied with the regulations, said Amy Kwan Ka-man, head of business planning, customer segment and ecosystem in the Hong Kong unit.
Of affluent mainland investors surveyed, 63 per cent already had a bank account in Hong Kong.