HSBC Global Private Banking has released its investment outlook for the third quarter of 2025, advising investors to focus on building resilient portfolios through global multi-asset diversification and active management. The bank maintains a mild overweight position in global equities, particularly in the US, China, India, Singapore, and the UAE, citing structural growth opportunities in AI adoption as key drivers.
The bank’s strategy includes an overweight position in UK Gilts and European investment grade bonds, whilst maintaining a neutral stance on US Treasuries and corporate bonds. To mitigate risks from trade tensions and US debt concerns, HSBC suggests investing in gold, hedge funds, and quality bonds, alongside strategic allocations to private equity and infrastructure.
On the currency front, HSBC holds a neutral view on the US dollar, focusing on hedging volatility with hedge funds and volatility strategies. Cheuk Wan Fan, Chief Investment Officer for Asia at HSBC, noted, “Policy uncertainty has challenged the ‘US exceptionalism’ narrative and added pressure on the US dollar. We expect resilient earnings and policy changes to support US equity market recovery.”
HSBC’s investment priorities for Q3 2025 include expanding equity exposure, capturing AI opportunities, mitigating risks with alternative strategies, and tapping into Asia’s domestic growth. Patrick Ho, Chief Investment Officer for North Asia, highlighted China’s AI advancements and policy stimulus as key factors for growth, stating, “China’s continued AI breakthrough should pave the way for its valuation gap to narrow.”
The bank’s thematic focus, “Asia in the New World Order,” underscores opportunities in China’s AI sector, Asian shareholder returns, enduring industry leaders, and high-quality Asian credit. HSBC anticipates that Asia’s markets will attract international investors seeking diversification, bolstering regional equity and credit markets.
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