Asian nations, including Japan, Singapore, and South Korea, are swiftly developing a robust culture of individual investing, according to a report by Aberdeen Investments. These countries are now on par with or exceeding some European counterparts in retail investment participation, a significant shift from their previous standings.
The report, titled ‘Beyond Tell Sid: How Asia built a new generation of investors’, highlights Japan’s progress, where households now hold 9% of their wealth in equities and mutual funds, surpassing the UK’s 8%. This growth is notable given Japan’s late start in promoting retail investment compared to the UK’s 1986 ‘Tell Sid’ campaign. Singapore leads with 11% household exposure to equities, whilst South Korea matches the UK and continues to close the gap with other nations.
Xavier Meyer, CEO – Investments at Aberdeen, noted, “Many Asian countries are grappling with the same challenge as the Western world: ageing populations, increasing pressure on public finances, and the need for households to take greater responsibility for their long-term financial wellbeing.”
The report also underscores the global obsession with property, with South Korean households holding 65% of their wealth in real estate. This trend is mirrored across Asia, with property accounting for 60% of household wealth in China and over half in India.
Aberdeen’s research suggests that reforms in financial education, tax incentives, and market infrastructure are crucial for broadening investment participation. Alex Smith, Head of Equities Investment Specialists at Aberdeen, emphasised, “Successful investing cultures are built gradually, through a series of reforms that make investing more accessible, attractive, and rewarding.”
The findings indicate that as Asian countries continue to enhance their investment landscapes, they may unlock more intrinsic value and attract global investors.
