Amy Lo, UBS’s Co-Head of Wealth Management for Asia, emphasized during a speech at an event held in Hong Kong on May 13 that geopolitical uncertainties and increasing market volatility are driving this trend.

Lo stated, “Volatility has now become permanent,” indicating that investors are reshaping their portfolios toward safer havens and new growth opportunities.

Asian Investors Moving Toward Crypto and Gold

Traditionally focused on US-based assets, investors are now diversifying their portfolios with alternative asset classes such as cryptocurrencies, commodities, and various currencies. Gold, in particular, has stood out recently as a preferred safe haven for many investors.

Bitcoin has also become a key part of this trend. According to Ian Kolman from Galaxy Digital, Bitcoin’s supply and demand dynamics continue to strengthen, reinforcing its position as a digital store of value.

Renewed Interest in Chinese Markets

After years of caution, China is once again drawing attention from wealthy investors in Asia. The strong performance of the Hong Kong Stock Exchange in 2024 has further increased interest in China-focused assets.

Lo noted that client inquiries regarding investment opportunities in China have risen, with many now actively seeking exposure to the market.

Temporary US-China Tariff Easing Boosts Optimism

A temporary tariff agreement announced between the US and China on May 11 has created a more positive atmosphere in the markets. Under this deal, the US will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on US goods from 125% to 10%.

Christina Au-Yeung from Morgan Stanley Private Wealth Management Asia said that this development has revived investment themes related to China.

Balanced Portfolio Recommendations Stand Out

With growing risk awareness, high-net-worth individuals in Asia are now being advised to adopt more balanced portfolio strategies. Morgan Stanley analysts recommend a mix of 40% fixed income, 40% equities, 15% alternatives, with the remaining portion held in cash or equivalents.

Global Trend Away from Dollar Reserves

It’s not just individual investors — governments and institutions are also distancing themselves from dollar reserves, shifting instead toward assets like gold and Bitcoin. According to BlackRock’s Jay Jacobs, this marks a significant change in global reserve strategies.

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