Hong Kong’s wealthy citizens are most worried about geopolitical tensions, survey finds
- Global inflationary pressure also emerged as a top concern in Hong Kong and across Asia-Pacific in the report by Swiss bank Lombard Odier
- People with at least US$1 million of investible assets in the region are diversifying and shifting away from domestic markets
The report defines high-net-worth individuals as people with at least US$1 million of investible assets domiciled in the Asia-Pacific region.
The report surveyed more than 450 high-net-worth individuals across eight markets in the region.
It found that in the last two years more than half of Hong Kong’s wealthy residents have shifted their investments into safer assets, such as cash and gold, while 41 per cent reduced their exposure to the domestic market.
In March, the CEO of bourse operator Hong Kong Exchanges and Clearing, Nicolas Aguzin, blamed a “fragile” geopolitical environment for reducing activity on the city’s stock exchange.
“The question is how US-China tensions will affect Hong Kong’s status as a global financial centre,” said Peter Lee, an honorary adviser in the Greater China division of CPA Australia, a professional accounting body.
“This is a question high-net-worth individuals need to ask themselves every day.”
Overall, inflation was the highest concern across the region, as the aftermath of Covid-19 has given way to a period of escalating food and energy prices exacerbated by the Russia-Ukraine conflict.
“Higher inflation is the main economic concern among our clients, and the concern is much greater than last year,” the report said.
Inflation was considered a top concern by 77 per cent of those surveyed, with Singapore topping the list at 87 per cent.