Affluent investors in Hong Kong and the Chinese mainland anticipate an average investment portfolio return of 9 percent in 2025, according to a wealthy investor survey by DBS Bank (Hong Kong).

The survey highlights that wealthy investors’ primary goal is to preserve capital, as they actively seek to expand their global exposure, reflecting an optimistic outlook on economic growth prospects for the coming year.          

Conducted in May, the survey included responses from 1,517 high-net-worth individuals in Hong Kong, each with investable assets of HK$1 million ($127,390) or more. The survey found that respondents expect average portfolio returns of 9 percent this year, despite widespread concerns about market volatility (69 percent), interest rate fluctuations, and inflationary pressures, according to DBS.

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Hong Kong's wealthy investors have reduced cash allocations from one-third of their portfolios last year to 20 percent in 2025, according to the Affluent Investor Snapshot 2025 released by HSBC on July 3. This reflects strategic moves toward greater asset diversification amid potential rate cuts by the United States (US) and ongoing economic and geopolitical uncertainties.                                

Notably, 69 percent of participants identified capital preservation as their top investment objective for 2025, while 61 percent plan to increase their investment allocations over the next 12 months, according to DBS.

Wealthy investors typically hold four or more asset classes to diversify their portfolios, according to DBS. Hong Kong investors showed a preference for bond products, while mainland investors leaned towards alternative investments like gold and commodities.

Investment funds remain the core allocation of their portfolios, with about 60 percent of surveyed participants indicating they hold such assets. Over 56 percent of surveyed investors prefer fixed-income funds, followed by multi-asset funds, according to DBS.

Global expansion remains a priority for wealthy investors, with 64 percent of respondents expressing interest in overseas markets, according to DBS. Singapore emerged as the preferred destination for 27 percent of mainland investors surveyed.

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Digital asset adoption continues to grow, with 42 percent of high-net-worth individuals already invested and another 18 percent planning their entry. However, concerns persist about custody security and regulatory transparency, according to the DBS survey.  

Amy Kwan, head of business planning, customer segment and ecosystem of DBS (HK), stated that wealthy investors exhibit confidence, resilience, and adaptability towards market prospects, in a continuously changing global economic environment. Wealthy investors are actively diversifying their international investment portfolios, she added.

While digital tools are increasingly popular in investment decision-making, affluent investors still highly value communication with trusted client managers for comprehensive, personalized investment advice, Kwan said.        

Contact the writer at mikegu@chinadailyhk.com