Media365
Hong Kong and Singapore are set to be the biggest winners in attracting new capital inflows as global investors diversify their asset allocations amid geopolitical risks and trade tensions, according to the top executive at DBS Group.
The two Asian financial centres would be the best choice for international investors who previously held overweight positions in US markets but now sought to diversify their portfolios, Tan Su Shan, CEO of the largest lender in Southeast Asia, said in an interview last week.
US interest rate cuts and ongoing geopolitical tensions have prompted international investors to eye faster-growing Asian markets. “Global capital flows are changing, and that is going to become increasingly important to Asia,” she said. “Singapore and Hong Kong, as financial hubs, will both be winners in capturing the capital flows.”
Tan said Hong Kong’s initial public offering (IPO) market remains buoyant, supported by multiple connect schemes with mainland China that enable cross-border trading in stocks, bonds, exchange-traded funds and other assets. “Singapore will also benefit because its regulators have done a lot of work to revitalise its stock market,” she said.
She said she expected international investors to deploy capital across IPOs, private assets, precious metals and digital assets, with DBS – which uses Singapore and Hong Kong as its twin hubs – positioned to benefit.
Tan also said expanding trade flows between China, Indonesia and India in the coming years would create major opportunities for DBS.
