HSBC Survey Finds Mainland China Investors Cutting Cash, Boosting Local Equities

HSBC Group’s latest global retail investor survey, released on July 22, found mainland China respondents were more willing to invest, with cash making up 20% of their portfolios, down from 25% a year earlier. Nearly 70% said they plan to add mainland China assets over the next year, according to Jiemian News. The survey showed mainland investors increased equity allocations the most among asset classes, from 10% to 18%, helped by last year’s strong performance in China’s A-share market. More than 60% said they do not plan to raise cash holdings in the next 12 months, while 69% said they intend to increase mainland market exposure versus a global average of 53%. Mainland respondents also reported a 31% intention to raise international asset exposure. Their current top holdings are stocks at 59%, gold at 49%, and fixed deposits or savings at 45%. Looking ahead, they said they want to add insurance products, managed wealth solutions and managed investments. HSBC said the survey covered nearly 10,000 affluent individuals across 10 countries and regions, all with investable assets above $100,000. HSBC China International Wealth and Premier Banking head and managing director Xu Min said mainland investors are shifting toward more diversified portfolios in a low-rate environment. HSBC Private Banking and Wealth Management China chief investment officer Kuang Zheng said A-share earnings growth may rotate toward sectors including materials, energy and information technology, with technology earnings growth possibly reaching 30% and overall A-share earnings growth around 10%.