Fidelity International: Asia-Pacific investors' enthusiasm for cash is gradually weakening, stocks are becoming the preferred choice for the next market cycle.

2024-07-08 14:17

Zhitongcaijing
Investors' enthusiasm for cash is gradually waning, with stocks taking its place as the preferred choice for investors entering the next market cycle.
The Fidelity International "2024 Asia-Pacific Investor Survey" shows that with regular deposits and other cash assets currently providing interest rates higher than in the past decade, nearly half (48%) of investors in the Asia-Pacific region have allocated their assets to current and fixed deposits. However, with expectations of an interest rate cut cycle in the next 6-12 months, investors in the region are gradually becoming less enthusiastic about cash, with stocks replacing it as the preferred choice for entering the next market cycle. Additionally, an increasing number of investors (50%, a 5% increase from 2023) feel "secure" about their financial situation, especially in Australia (68%), Hong Kong (65%), and mainland China (64%).
As for the top three most popular assets, stocks take the lead, with 67% of investors in the region holding stocks (especially in Hong Kong, Taiwan, and Singapore), 63% of investors holding fixed deposits (especially in mainland China, Hong Kong, and the Japanese market), and 58% of investors holding insurance products (especially in Hong Kong, Taiwan, and the Singapore market). Investors in mainland China and Japan have a more conservative investment posture, with fixed deposits being the main asset, while investors in Hong Kong and Singapore prefer diversified investment portfolios and tend to increase their allocation to stocks.
Regarding investment goals, over half (58%) of Asia-Pacific investors prioritize long-term capital accumulation, while over a quarter (27%) focus on regular income. In terms of investment horizon, 37% of Asia-Pacific investors aim for a investment period of 5 years or more, 17% aim for 3-5 years, and only 5% aim for less than 6 months. Regardless of investment goals or duration, the overall expectation is for an annual return of 8%, with Taiwan and Australian investors having higher expectations at 9.5% and 8.8% respectively.
Fidelity International's Director of Investment Strategy, James Leung, commented: "We are pleased to see that most Asia-Pacific investors are focused on long-term investments. A longer investment period allows investors to look at broader investment prospects and not be affected by short-term market fluctuations, especially for young investors who are able to make long-term investments. However, the survey found that only one-fifth of investors aged 18-29 have an investment horizon of 5 years or more. Continuous investment throughout the market cycle is the key to achieving sustained long-term capital growth."