Local overview

Find out how global investment trends in areas such as sustainability and private markets are affecting Hong Kong — as well as how local strategies are being adapted for the new investment landscape

New paths in a changing investment landscape

Investors currently face difficult challenges. Ongoing inflation and geopolitical uncertainty – coupled with the need to decarbonise our economies – are making markets difficult to navigate. To understand how their strategies and views are adapting, Schroders’ Global Investor Study surveyed over 23,000 people who invest, from 33 locations around the world.

89%
of people in Hong Kong agree that higher inflation and interest rates mean we have entered a new regime in policy and market behaviour
58%
have changed their investment strategy in light of this and
37%
intend to do so

Yet people are still optimistic about returns

How people in Hong Kong think their returns over the next 12 months will compare with the previous 12 months

What investments have become more attractive to people in Hong Kong over the last six months?

Ranked by the difference between “more attractive” and “less attractive”

#1
Actively managed funds
#2
Digital assets
#3
Private assets such as private equity or real estate

Sustainable investment: time to engage

As people understand more about sustainable investing, they are thinking in greater depth about what it means. One aspect is “active ownership”, where investment managers influence company boards and management teams so that more sustainable practices are properly considered for the benefit of long-term value creation.

A large majority of people in Hong Kong believe that engaging with companies on sustainability will benefit their investments

Do people in Hong Kong think encouraging companies to act sustainably helps generate long-term value?

As people in Hong Kong learn about investing, they become more convinced that active ownership is effective

Top three areas where people in Hong Kong think engagement is most important

More information and education would mean more people would invest sustainably

Yet overall, people in Hong Kong remain enthusiastic about sustainable investing

Whether people in Hong Kong are attracted to sustainable funds and why

Moving forward with private assets

The survey shows people generally understand the issues around investing in private assets. (Private assets include private equity, real estate, infrastructure, and private debt and credit, i.e. direct lending to companies.) This is an important finding, as increasingly regulators globally are allowing ordinary investors to access these types of investments, which were previously reserved for pension funds and similar large institutions.

The top three private assets people in Hong Kong most want to invest in

28%
Private equity
23%
Infrastructure and renewable energy
18%
Real estate

People in Hong Kong think private assets can boost performance and diversification

Reasons why people in Hong Kong would invest in private assets

But they acknowledge the complexities around private assets, and admit they need to gain experience with them

Top five perceived barriers to people in Hong Kong investing in private assets

On average, people in Hong Kong would consider putting

Schroders commissioned alan. agency and iResearch to conduct an independent online survey of more than 23,000 people who invest from 33 locations and territories around the globe, spanning across Europe, Asia and the Americas. The survey was conducted online between May 26 and July 31, 2023. The research defines “people” as those who will invest at least €10,000 (or the equivalent) in the next 12 months and who have changed their investments within the last 10 years. Due to this threshold, Schroders acknowledges that the research findings are not representative of everyone’s experience.

Important Information

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This document is intended to be for information purposes only and it is not intended as promotional material in any respect nor is it to be construed as any solicitation and offering to buy or sell any investment products. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Any security(ies) mentioned above is for illustrative purpose only, not a recommendation to invest or divest. Opinions stated are valid as of the date of this document and are subject to change without notice. Information herein and information from third party are believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.

Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Derivatives carry a high degree of risk. Exchange rate changes may cause the value of the overseas investments to rise or fall. If investment returns are not denominated in HKD/USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. Please refer to the relevant offering document including the risk factors for further details.

This material has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.