In the wake of Donald Trump's recent election victory, investor sentiment in Hong Kong and Singapore has shown notable shifts, particularly regarding allocations to the US market. According to a survey conducted by MDRi, Hong Kong investors are planning to increase their US market investment allocation by 3% to 5% in 2025. This is a significant change, as 24% of Hong Kong investors now intend to invest more in the US, up from 19% previously. In contrast, Singaporean investors are also expected to raise their US investment allocation from 19% to 22%.
The survey highlights a stark difference in sentiment between the two regions. Approximately 70% of Hong Kong investors expressed favorable views towards Trump, compared to only 50% of their Singaporean counterparts. Furthermore, both groups recognize the critical importance of the US-China relationship, with 44% of Hong Kong investors and 46% of Singaporean investors acknowledging its significance. However, there is a prevailing concern about the future of these relations, with 40% of Hong Kong investors and 46% of Singaporean investors expecting them to worsen.
Key factors influencing investment decisions include market volatility, which affects 53% of Hong Kong investors, interest rate changes at 52%, and Trump's economic policies at 50%. Simon Tye, CEO of MDRi, noted that the differing outlooks between Hong Kong and Singapore investors could shape future market dynamics. This evolving narrative underscores the complexities of investor sentiment in the region as they navigate the implications of Trump's policies and the broader geopolitical landscape. [ff67ef32] [96d3d62b] [1a6feb1f] [ac135333] [cc892a98] [d9c086f2]