Over four in five investors plan to maintain or raise allocations

Dah Sing Bank confidence index holds at 68, in line with last year’s level. 

Hong Kong investors remain confident, with 88% planning to maintain or increase their investment allocations in the city over the next 12 months, a Dah Sing Bank report showed.

The bank’s Investor Confidence Index stood at 68, in line with last year’s level.

“Affluent and high-value investors demonstrated stronger confidence than mass investors, with the confidence index amongst high-value investors reaching 75,” it said.

Respondents who were confident about market conditions over the year expected an average investment return of 7.7%. 

By asset class, over half (56%) favoured equities. Technology-related opportunities remained the top investment theme for the second consecutive year at 58%.

However, nearly half (49%) expressed concerns over high valuations of artificial intelligence-related assets, whilst 46% were concerned about geopolitical risks and 38% about economic slowdown.

Respondents expect the Hang Seng Index and the S&P 500 Index to rise by 15% and 17% respectively from benchmark levels over the next 12 months.

The online survey, conducted in August, covered 608 Hong Kong respondents, including mass investors with liquid assets below $1m, affluent investors with $1m to $8m, and high-value investors with more than $8m.