We take your security very seriously. In order to protect you and our systems, we are making changes to all HSBC websites that means some of the oldest web browser versions will no longer be able to access these sites. Generally, the latest versions of a browser (like Edge, Chrome, Safari, etc.) and an operating system family (like Microsoft Windows, MacOS) have the most up-to-date security features.
If you are seeing this message, we have detected that you are using an older, unsupported browser.
In 2022 global investors are faced with a new set of challenges including slower growth, monetary policy tightening and lower asset returns even as the pandemic persists amidst the emergence of new Covid variants and geopolitical risks are heightened. Against this backdrop, Asian markets offer pockets of investment opportunities, supported by faster economic growth when compared with developed markets and attractive earnings and valuation profiles. Asian equities, in particular, stand out in this environment after being unloved in 2021.
In the coming years we see Asia leading global growth and cementing its position as a greener and more technologically advanced economic powerhouse amidst demographic shifts, policy reforms and rising innovation. However, Asian assets continue to be underrepresented in global portfolios, a situation that is ripe for change. At HSBC Asset Management, we have been helping our clients navigate various market cycles and connecting them, for decades, to underexplored opportunities in the region – catalysing the inevitable transition to Asia.
Focus on Asian equities
Asian economies continue to strengthen
We see Asia’s growth recovery strengthening in 2022, enabling a virtuous and sustainable economic cycle in the region
In contrast to the tightening cycles in developed markets, China is on the easing path and its policy tilt is expected to be the key driver of the regional recovery
Finally, Asia’s stronger footing, underpinned by its exports, capex and productivity growth, can help the region weather exogenous shocks
Asian economies gain strength on exports, capex & productivity
The performance figures displayed in the above relate to the past and past performance should not be seen as an indication of future returns.
Source: Refinitiv, HSBC Asset Management, January 2022. For India, the year runs from 1 April to 31 March the following year.
Any views expressed were held at the time of preparation and are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Asset Management accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purpose only.
Asia expected to lead 2022 earnings growth
Asia ex-Japan equities are trading at discount to their US and European counterparts, while providing higher earnings growth
Forecasted earnings growth for Asia ex-Japan equities averages 11.2% in 2022, compared with 7.3% and 2.7% for US and European equities for the same period
At a country level, China stands out within the region as the only economy where policy is easing, which should provide a buffer against the rate tightening cycles elsewhere
Asian equities offer higher EPS growth at less demanding valuations
The performance figures displayed in the above relate to the past and past performance should not be seen as an indication of future returns.
Source: Refinitive, HSBC Asset Management, January 2022.
Any views expressed were held at the time of preparation and are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Asset Management accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purpose only.
Pandemic-induced digital acceleration
Tipping point - The pandemic has fast-tracked the adoption of the technology in Asia with an increasing number of consumers moving to online channels, accelerating the digital transformation of business models and the supply chain in the region. Innovation and manufacturing prowess in high tech space have also been significantly upgraded amidst the rising need for technological self-sufficiency.
Digital adoption - In Asia, the advent of the 5G mobile technology is supported by its highly adaptable digital consumer base and government investments in “new infrastructure”, including autonomous driving, advanced healthcare, fintech and the Internet of Things (IoT). Amidst multiple driving forces, 5G subscriptions in region are expected to rise rapidly to about 1.2 billion in 2024, from less than 50 million in 2020.
Secular trend - In addition to the rise of 5G, Taiwan and Korea are home to some of the world’s largest and leading hardware and semiconductor manufacturers. These export-driven economies will likely continue to benefit from the secular trend of digitalisation – an important investment theme that could generate alpha for investors for years to come.
Asia-Pacific: 5G subscriptions (2019-2024)
Source: GlobalData’s 2020 forecast. The information provided does not constitute any investment recommendation in the above mentioned asset classes, indices or currencies. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Asset Management accepts no liability for any failure to meet such forecast, projection or target. For illustrative purpose only.
About HSBC’s Asian equity capabilities
Note: Representative overview of the investment process, which may differ by product, client mandate or market conditions.
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.
Exchange rate risk: Investing in assets denominated in a currency other than that of the investor’s own currency perspective exposes the value of the investment to exchange rate fluctuations
Concentration risk: Funds with a narrow or concentrated investment strategy may experience higher risk and return fluctuations and lower liquidity than funds with a broader portfolio
Emerging market risk: Emerging economies typically exhibit higher levels of investment risk. Markets are not always well regulated or efficient and investments can be affected by reduced liquidity
Derivative risk: The value of derivative contracts is dependent upon the performance of an underlying asset. A small movement in the value of the underlying can cause a large movement in the value of the derivative. Unlike exchange traded derivatives, over-the-counter (OTC) derivatives have credit risk associated with the counterparty or institution facilitating the trade
Operational risk: The main risks are related to systems and process failures. Investment processes are overseen by independent risk functions which are subject to independent audit and supervised by regulators
Counterparty risk: The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations
Liquidity risk: Liquidity of securities may also fluctuate, resulting in situations where an investor may not be able to buy or sell the security in a timely manner at their preferred price range if the turnover volume were to drop significantly
Taxation risk: Investors should note that the proceeds from the sale of securities in some markets or the receipt of any dividends or other income may be or may become subject to tax, levies, duties or other fees or charges imposed by the authorities in that market
Custody risk: Investors should be aware that they are exposed to the risk of the custodian not being able to fully meet its obligation to restitute in a short time frame all of the assets of the Fund in the case of bankruptcy of the custodian
Sustainable investment policy risk: Sustainable Criteria are subjective and are subject to the Investment Adviser’s discretion. The use of Sustainable Criteria may affect the Fund’s investment performance
Beginning of dialog window. It begins with a heading called "You are leaving the HSBC AMG website.". Escape will cancel and close the window.
You are leaving the HSBC Asset Management website.
Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.
Beginning of dialog window. It begins with a heading called "Terms and Conditions". Escape will cancel and close the window.
Terms and conditions
This Site is intended for Institutional Investors in Australia only.
In Australia, this document is issued by HSBC Bank Australia Limited ABN 48 006 434 162, AFSL 232595, for HSBC Asset Management (Hong Kong) Limited ARBN 132 834 149 and HSBC Global Asset Management (UK) Limited ARBN 633 929 718. This document is for institutional investors only, and is not available for distribution to retail clients (as defined under the Corporations Act). HSBC Asset Management (Hong Kong) Limited and HSBC Global Asset Management (UK) Limited are exempt from the requirement to hold an Australian financial services license under the Corporations Act in respect of the financial services they provide. HSBC Asset Management (Hong Kong) Limited is regulated by the Securities and Futures Commission of Hong Kong under the Hong Kong laws, which differ from Australian laws. HSBC Global Asset Management (UK) Limited is regulated by the Financial Conduct Authority of the United Kingdom and, for the avoidance of doubt, includes the Financial Services Authority of the United Kingdom as it was previously known before 1 April 2013, under the laws of the United Kingdom, which differ from Australian laws.
Important information
The funds described in this Site (“Funds”) invest in various investments, such as equities, bonds, money market instruments, collective investment schemes and alternative investments. Each Fund has a different investment objective and risk profile.
The Funds may be subject to the risks of investing in emerging markets and smaller companies; and may be subject to the concentration risks when the investments are concentrated in one or a small number of markets or sectors.
The Funds may invest in non-investment grade bonds, unrated bonds, contingent convertible securities, mortgage backed securities, asset backed securities and urban investment bonds issued by mainland China local government financing vehicles (LGFVs) which are subject to additional risks and volatility.
The Funds may have substantial investments in securities issued by a single sovereign issuer (including but not limited to issuer with a non-investment grade credit rating) and are subject to higher concentration risk, sovereign risk and credit risk.
The Funds may gain exposure to hedge fund, absolute return strategy, private equity, real estate sector and Real Estate Investment Trust (REIT) which are subject to additional risks and volatility.
The Funds may invest in onshore Chinese securities through various market access schemes and China A-shares Access Products. Such investments involve additional risks, including the risks associated with China's tax rules and practices.
When investing in Indian bonds, the Funds may need to comply with the licensing regulations in India and may be subject to additional risks, including quota restrictions and tax risks.
The Funds may invest in other funds and need to bear the underlying funds' fees and expenses on top of the Funds' own fees and expenses.
The Funds may invest in financial derivative instruments for investment purpose which may lead to higher volatility to their net asset value.
The Funds may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.
Because the Funds' base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations. There is no guarantee that the currency hedging strategy applied to the relevant classes will achieve its desired result.
Investing in money market funds are not the same as placing funds on deposit with a bank or deposit taking company. The Funds which are money market funds have no obligation to redeem units at their offering value and such Funds are not subject to the supervision of the Australian Prudential Regulation Authority. Investors may not recoup the original amount invested in the Funds.
The Funds' investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
The Funds are NOT equivalent to term deposits. Investors should not invest in the Funds solely based on the information provided herein and should read the offering document of the Fund for details may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
The Funds are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided herein and should read the offering document of the Fund for details.
You must read carefully the terms and conditions and disclaimers set out here ('Terms') and agree to be bound by these Terms prior to registering as a user of this. By selecting ACCEPT at the bottom of this page, you agree to be bound by these Terms. If you do not agree to be bound by these Terms please select the DECLINE option below.
Before using this Site, you should read carefully the Terms, our Cookie Policy and also our Privacy Policy. These can be found at www.hsbc.com.au.
Cookies on this website
At HSBC we use cookies to help ensure that our website and services are able to function properly. These cookies are necessary and so are set automatically.
We would also like to use some cookies to:
make your visit more personal
improve our website based on how you use it
support our marketing
These cookies are optional and you can choose which types you'd like to accept. To do this, select 'Manage cookie settings'.
If you'd like to accept all optional cookies, select 'Accept all cookies'.
To learn more about how we use cookies, visit our Cookie notice.
We see Asia’s growth recovery strengthening in 2022, enabling a virtuous and sustainable economic cycle in the region
