The HSBC Affluent Asian Tracker survey shows that affluent Asian investors, among the youngest of the world's wealthy, are riding on the recovery in the world's fastestgrowing markets while navigating through continued uncertainty in the West, particularly in Europe.
Hong Kongers hold average liquid assets of US$301,289 (Bt9.75 million), nearly double Singapore's at $183,145 and Taiwan's at $155,162. Mainlanders lead Asia's new affluent with $126,537 worth of liquid assets while Indians' are at $87,769 and Indonesians' at $61,697. Malaysia's affluent hold $56,891 worth of liquid assets.
Bruno Lee, regional head of wealth management AsiaPacific, said yesterday that in the early part of the year, most Hong Kong affluent were able to capitalise on the stock market's recovery and regained confidence in other asset classes that delivered balanced growth and tapped opportunities in fastgrowing economies.
Across Asia, over half of liquid assets are in deposits, with affluent Indonesians holding up to 95 per cent in cash. Across the affluent in Greater China (Hong Kong 44 per cent, Taiwan 42 per cent and mainland China 41 per cent) and India (40 per cent), at least 40 per cent of liquid assets are invested in equities, unit trusts and other investments.
The third wave of the HSBC Affluent Asian Tracker was conducted by Nielsen for HSBC across 2,072 affluent individuals aged 1865 in seven key markets from February to April. With the last wave conducted in September to October, the survey gauged the views of people in the top 10 percentile of the population by liquid assets or mortgage value.
According to the survey, 69 per cent (versus 70 per cent) of mainland Chinese affluent reported a rise in net worth compared to six months ago. The proportion increases to 88 per cent (versus 85 per cent) with the addition of the affluent set who maintained their net worth.
Across Asia, except in Indonesia (80 per cent versus 91 per cent) and Taiwan (67 per cent versus 75 per cent), more affluent individuals say they maintained or grew their net worth over the last six months: 91 per cent in Singapore (versus 73 per cent), 91 per cent in Malaysia (versus 87 per cent) and 89 per cent in India (versus 82 per cent).
Affluent mainlanders are the youngest among the region's affluent with an average age of 36, followed by Indians at 38 and Indonesians at 39. Hong Kong's affluent are the oldest at 48 years on average and close to four in 10 (39 per cent) are double income couples with no kids (Dinks). At least 10 per cent of affluent respondents in the region, except in Taiwan, are single.
"Asia's young and upwardly mobile working population is fast accumulating wealth to become this generation's emerging affluent. Their wealth management needs are evolving as they cross over to the next life stages.
"In many key markets in the region, investments, particularly in local equities, are a key driver to wealth growth. Asia's new affluent, particularly in mainland China, are increasingly becoming savvy investors as they look to other asset classes and to overseas opportunities for diversification," Lee said.
Affluent Asians continue to look to stocks for future growth, with India leading the pack (44 per cent), followed by Hong Kong (42 per cent) and mainland China (18 per cent). The affluent in Greater China, led by 20 per cent in Hong Kong, 16 per cent in mainland China and 12 per cent in Taiwan, plan to diversify into other investments, including the yuan in the next three months. Currently, close to a quarter (23 per cent) of affluent individuals in Hong Kong hold yuan investments.
A wave of affluent investors taking up new products is expected from Greater China - 32 per cent in Hong Kong, 21 per cent in mainland China and 12 per cent in Taiwan. Over a 10th in Hong Kong (13 per cent) and mainland China (14 per cent) plan to invest in bonds for the first time. About 14 per cent of affluent mainlanders and 10 per cent of affluent Taiwanese plan to do overseas banking, particularly investments in securities and unit trusts.