Survey: Investors from Hong Kong and Singapore plan to increase their investments in the US market after the US presidential election.
18/11/2024
GMT Eight
Commercial insights consulting firm MDRi recently conducted a survey and found that there is a noticeable difference in investment sentiment between Hong Kong and Singapore after Trump won the US presidential election. The survey interviewed 500 respondents in both Hong Kong and Singapore to understand the impact of the US election results on the local economic outlook. After the 2024 US election, investors in both Hong Kong and Singapore will shift their investment focus to the US market. This shift highlights the increased confidence of investors in the US market in both locations.
In the survey, respondents from both locations were asked who they believed was most likely to improve the global economic climate. The responses from the two locations were starkly different: 70% of respondents in Hong Kong leaning towards Trump, while only half of the respondents in Singapore shared the same view, showing a clear divergence in the views of respondents in the two locations.
The distribution of investments by Hong Kong investors is currently mainly in the Hong Kong market (58%), followed by the US market (19%). With the end of the 2024 US election and the enhanced optimism in the global economy, Hong Kong investors are clearly changing their investment deployment for 2025, planning to increase the proportion of investments in the US market from 19% to 24%.
24% of Hong Kong investors plan to increase their investments in the US. MDRi compared Generation Z and Millennials to older generations and found that after the 2024 US election, these younger generations intend to increase their investments in the US market. The shift in investment from the Hong Kong market to the US market reflects the increased confidence of the younger generation in the US economy, while feeling pessimistic about the local economic prospects.
The investment trends of Singapore investors are generally similar. Currently, Singapore investors allocate 60% of their investments to the local market in Singapore, and the US accounts for 19% of their investment portfolio. After the 2024 US election, the desire of Singapore investors to increase their investments in the US has strengthened, and the expected proportion of investments in the US market will increase from 19% to 22%. It is worth noting that after the US election, 18% of Singapore investors plan to increase their investments in the US market in 2025.
The survey also found that the main factors influencing the decisions of Hong Kong investors include market volatility (53%), changes in interest rates (52%), and Trump's economic policies (50%). For Singapore investors, the main factors considered are changes in interest rates (58%) and economic policies (55%), with Hong Kong investors (45%) placing more emphasis on international relations than Singapore investors (31%).
Simon Tye, CEO of MDRi, stated that this survey provides important insights into the potential impact of Trump's election on the investment sentiment in Hong Kong and Singapore. The results of the survey show that Hong Kong investors are optimistic about the prospects of the US market, while Singapore investors are noticeably cautious. The divergent views of investors in the two locations highlight the mutual influence between geopolitical situations and local economic confidence. To succeed in the constantly evolving market environment, companies must understand these market trends.