Asia's family offices have been betting big on risk — but that could be changing
Publishing timestamp: 2023-12-17 20:20:01
Summary
The article discusses a recent survey that suggests Asia's family offices, which cater to affluent individuals or families, may be shifting away from their historically larger appetite for risk compared to global counterparts. The survey conducted by Citi Private Bank showed that family offices around the world, except for Asia, have been moving out of cash and into risk assets. Asian family offices had previously allocated more funds into risky assets than low-risk assets, but it may be harder for them to add to risk at this point. Factors contributing to the comparatively high risk appetite of Asian family offices include the historically low interest rate environment, bets on China's post-Covid recovery (which has since lost ground), potential slowdown in China, disruption of supply chains, and the underperformance of equity markets in Asia compared to the US and Europe. Singapore is the top hub for family offices in Asia, followed by Hong Kong, India, and other countries. The proactive regulatory stance and attractive tax rates in Singapore have made it a preferred choice for wealthy individuals and families.
Sentiment: NEUTRAL
Keywords: hang seng index, asia economy, south asia, east asia, stoxx 600, asia news, china, investment strategy, currency markets, singapore, s&p 500 index, stock markets, business news,
Source: https://www.cnbc.com/2023/12/18/asian-family-offices-bet-big-on-risk-but-that-could-be-changing.html