Mainland China, Hong Kong to lead Asia in attracting overseas capital: Wall Street bankers

Core Insights - International investors are increasingly looking to diversify their portfolios with non-US-dollar assets, particularly in Mainland China, Hong Kong, Japan, and India, as they seek growth opportunities in the coming years [1] Group 1: Market Sentiment - David Solomon, CEO of Goldman Sachs, emphasized China's significance as a major global economy, stating that global capital allocators will remain interested in China regardless of the economic environment [2] - Solomon provided an optimistic outlook for Hong Kong and mainland Chinese stocks during a panel discussion at the Global Financial Leaders' Investment Summit [3] Group 2: Investment Trends - Approximately 80% of international investors have shifted to Chinese equities since last year, which accounted for half of the US$6 trillion lost due to stock disposals from 2020 to 2022, a period affected by a downturn in the property market and the Covid-19 pandemic [4] - The Hang Seng Index in Hong Kong has surged by 35% this year, driven by the performance of Chinese tech stocks, particularly following the global attention on AI start-up DeepSeek [5] Group 3: Market Performance - The average daily turnover of the Hong Kong stock exchange reached HK$256.4 billion (US$33 billion) in the first nine months of this year, marking a 124% increase from the previous year [6] - Solomon noted that many Chinese equities appear very attractive as valuations rise, whether due to specific events like the DeepSeek moment or a more normalized long-term view [6] Group 4: Strategic Importance - Ted Pick, CEO of Morgan Stanley, echoed the sentiment that Hong Kong and China are critical markets for investors who value great companies and market dispersion [7]