Hong Kong Investors Most Ambitious in Asia Despite More Tempered Return Expectations
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
A survey by Natixis Investment Managers reveals that Hong Kong investors are Asia's most ambitious stock pickers, with 95% seeking to outperform the market—the highest proportion in the region—yet they maintain more measured return expectations than their peers . Despite the Hang Seng Index's strong 28% gain in 2025, Hong Kong investors expect long-term returns of 12.3% above inflation, significantly below the regional average of 17.3% . The gap between investor expectations and adviser estimates has narrowed considerably, suggesting a recalibration of market sentiment .
Key Points
- Natixis Investment Managers surveyed 750 individual investors holding at least US$100,000 in investible assets across Hong Kong, Japan, Singapore, South Korea, and Taiwan in August
- Hong Kong leads Asia with 95% of respondents wanting to beat the market, compared to the regional average of 85%
- Hong Kong investors expect returns of 12.3% above inflation annually, while the regional average stands at 17.3%
- Financial advisers in Hong Kong consider realistic long-term returns at 8.8%, with the investor-adviser gap at 40%, down from 16% last year
- The Hang Seng Index gained approximately 28% in 2025, its best annual performance since 2017, but has declined more than 8% this year
Why It Matters
The moderation in Hong Kong investors' return expectations, despite their continued ambition to outperform, reflects a more cautious outlook shaped by recent market volatility and the AI-driven rally in regional peers . Dave Goodsell of Natixis Centre for Investor Insight noted that investors tend to extrapolate past performance, suggesting the tempered expectations may indicate learning from market cycles . Charlie Tsai attributed the measured expectations partly to the local equity market's strength and improving property picture over the past year .
The moderation in Hong Kong investors' return expectations, despite their continued ambition to outperform, reflects a more cautious outlook shaped by recent market volatility and the AI-driven rally in regional peers . Dave Goodsell of Natixis Centre for Investor Insight noted that investors tend to extrapolate past performance, suggesting the tempered expectations may indicate learning from market cycles . Charlie Tsai attributed the measured expectations partly to the local equity market's strength and improving property picture over the past year .