Hong Kong Investors Lead Asia in Market Ambition, Expect Lower Returns

A survey conducted in August by Natixis Investment Managers has revealed a sharp contrast in Hong Kong investors’ outlook: they are the most determined in Asia to outperform the market, but expect lower long-term returns than their regional peers.

Ambition leads the region

Some 95 per cent of Hong Kong respondents said they wanted to outperform the market, the highest proportion in Asia. The average across the region stood at 85 per cent, underscoring the stronger market-beating ambition among Hong Kong respondents.

Natixis described Hong Kong investors as Asia’s most ambitious stock pickers, while noting that their return expectations were much more subdued than those of regional peers.

Hong Kong investors expected long-term returns of 12.3 per cent above inflation. That was below the regional average of 17.3 per cent, according to the survey.

Lower expectations amid AI-led optimism

The findings come against the backdrop of an 18-month rally that was partly fuelled by the artificial intelligence boom and inflated expectations. AI-fuelled optimism has lifted return expectations across Asia, according to the survey findings.

The Hong Kong results therefore combine a strong desire to beat the market with a more cautious assessment of what investments may deliver over the long term. The difference between the 12.3 per cent expectation in Hong Kong and the 17.3 per cent regional average highlights the measured stance identified in the survey.

Source: South China Morning Post