China's rich step up offshore bets as gold and insurance gain favour

Core Insights - More than half of China's high-net-worth individuals (HNWIs) plan to increase offshore investments in their portfolios over the next year due to macroeconomic uncertainty [1][3] - The high-net-worth population in China is transitioning from rapid expansion to quality-driven growth [2] - Economic headwinds have led the wealthy to adopt a more cautious investment approach, focusing on gold and insurance for capital preservation while expanding global investments [3] Investment Trends - 86% of respondents intend to hold or increase overseas assets, with 56% planning to allocate more funds offshore [3][4] - Currently, only 45% of respondents have offshore exposure, with overseas assets accounting for an average of 20% of their portfolios over the past three years [4] - Hong Kong is the most favored destination for offshore investments, chosen by 52% of respondents, followed by Singapore (40%) and the US (35%) [4] Demographic Insights - Younger affluent investors (ages 30 to 44) show a stronger appetite for offshore assets, with 61% expressing intentions to increase overseas holdings compared to 51% of those aged 45 and above [6] - The current asset allocation among respondents includes 44% in low-risk bank products and insurance for capital protection, and around 14% in equities for growth [6] Market Performance - Hong Kong's stock market has outperformed many global peers this year, with the Hang Seng Index rising nearly 32% driven by enthusiasm for Chinese tech stocks [5]