High-net-worth investors are entering 2025 with a mix of optimism and caution, as technological advancements and geopolitical shifts present both opportunities and risks, according to HSBC’s latest Private Wealth Market Pulse Survey.
The survey, conducted ahead of The Private Wealth Sessions at the HSBC Global Investment Summit in Hong Kong, polled 200 high-net-worth individuals in Hong Kong and Singapore.
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It found that 44% of respondents see artificial intelligence and other technological advancements as key investment opportunities this year. However, nearly half (47%) consider technological disruptions the top investment risk.
Geopolitical uncertainty is another major factor shaping investor sentiment. While 22% of respondents view geopolitical developments as opportunities, 27% see them as risks.
Despite this, confidence in Asia’s economic prospects remains strong, with 92% of investors maintaining a neutral to positive outlook for the region in 2025.
Although recent market volatility, high-net-worth investors remain bullish on key stock indices. More than half (55%) expect the S&P 500, Hang Seng Index, and Straits Times Index to rise by at least 5-10% by the end of the year.
Lavanya Chari, HSBC’s Head of Wealth and Premier Solutions shared: “These findings come at a period when investors are seeking timely and reliable insights to help them cut through the market noise and navigate unpredictability in global financial markets. We have the pleasure to host a league of top-notch financial leaders at The Private Wealth Sessions to unpack the investment implications from global shifts and rifts, inspiring our ultra-high net worth and high net worth clients to discover opportunities to withstand market cycles in the long run.”
Likewise, the survey also highlighted differing opinions on AI’s role in corporate earnings. While 40% of respondents believe AI is an overhyped profit driver, 31% think it will enhance efficiency despite increased costs. Meanwhile, 24% see AI as a significant contributor to earnings growth.
Faced with global uncertainties, two-thirds of polled investors prefer steady income streams and long-term investment opportunities. Fixed income remained the most popular asset class among 37% of respondents, while foreign currencies and commodities are preferred by 30%.
Furthermore, 15% believe that alternative investments provide the best long-term returns.
Investors are still managing their risk in a variety of ways. Just 11% decide to maintain cash, while over half (46%) choose active investment strategies and multiple portfolio diversification. For the upcoming ten years, 43% of respondents still cite North America as their top investment destination, with Asia coming in second at 28%.
Lok Yim, HSBC’s Regional Head of Global Private Banking, Asia Pacific added: “This survey shows us that high-net-worth investors are experienced in adopting a multi-asset investment strategy to capture the diversification benefits from multiple markets and asset classes. For the second year, deep insights and thought-provoking dialogues at the HSBC Global Investment Summit readily set our clients up for seeing through rapid market developments and connecting them with new investment opportunities in 2025 and beyond.”
While 2025 presents mixed signals for investors, the data suggests a continued preference for staying invested and adapting to market shifts rather than retreating to cash holdings.
