- Survey by MDRi highlights rising concerns in Hong Kong and Singapore about the deteriorating US-China relationship following Trump’s election
- Hong Kong investors exhibit greater confidence in the US market, contrasting with a more cautious outlook from Singaporean investors
- Investment decisions are influenced by market volatility, interest rate changes, and perceptions of Trump’s economic policies
HONG KONG SAR – Media OutReach Newswire – 19 November 2024 – In the wake of Donald Trump’s election as the next US President, a recent survey conducted by MDRi, a business insights provider, reveals significant differences in investor sentiment between Hong Kong and Singapore. The survey, which included 500 participants from each market, sought to understand the implications of the US election outcome on regional economic perspectives.
In this survey, respondents from both markets were asked to identify the candidate they believed would most likely enhance the global economic climate. A striking contrast emerged between the two markets: while a significant 70% of individuals in Hong Kong favoured Donald Trump, only half of the respondents in Singapore shared this view (See figures 1a and 1b).
Both the Hong Kong and Singapore markets recognize the significant influence of the US-China relationship on their local economies’ growth trajectories, with 44% in Hong Kong and 46% in Singapore acknowledging its importance (See figure 2).
However, there is a shared concern in both markets regarding the potential deterioration of the US-China relationship following Donald Trump’s presidency, with 40% in Hong Kong and 46% in Singapore expecting it to worsen (See figure 3).
Among Hong Kong millennials aged 30-44, 35% anticipate a worsening of US-China relations— slightly lower than the overall average of 40%. Conversely, older generations in Singapore display heightened concerns, with 53% of those aged 45 and above fearing negative consequences, compared to the total average of 46%.
Among
Hong
Kong
investors,
the
bulk
of
their
investments
are
currently
allocated
to
the
Hong
Kong
market
(58%),
with
the
US
market
following
behind
at
19%.
Following
the
2024
US
election
and
a
heightened
sense
of
optimism
towards
the
global
economy,
there
is
a
notable
shift
in
investment
plans
among
Hong
Kong
investors
for
2025,
with
a
planned
increase
in
investment
allocation
to
the
US
market
(rising
from
19%
to
24%,
see
figure
4).
24% of Hong Kong investors plan to invest more in the US market. And when we compare to the older age group, Gen Z and Millennials intend to invest more in the US market after the 2024 US election (See figure 5). The shift in investment from the Hong Kong market to the US market reflects a growing confidence among younger investors in the US economy, coupled with a sense of pessimism regarding the local economic outlook.
Similarly,
Singaporean
investors
are
displaying
a
comparable
investment
trend.
Currently,
60%
of
their
investments
are
allocated
to
the
local
Singapore
market,
while
the
US
market
comprises
19%
of
their
portfolio.
Following
the
2024
US
election,
there
is
an
increasing
interest
among
Singaporean
investors
to
boost
their
US
market
investments,
with
the
allocation
projected
to
rise
from
19%
to
22%
(See
figure
6).
Notably,
18%
of
Singaporean
investors
plan
to
increase
their
US
investments
in
2025
after
the
election
(See
figure
7).
Both
Hong
Kong
and
Singapore
investors
are
exhibiting
a
shift
in
investment
sentiment
towards
the
US
market
following
the
2024
US
election.
This
shift
underscores
a
growing
confidence
among
investors
from
both
regions
in
the
US
market.
This
change
in
investment
focus
may
also
be
influenced
by
a
decrease
in
confidence
in
the
local
and
Asia-Pacific
economies,
as
highlighted
in
the
preceding
sections.
Key factors influencing investment decisions for Hong Kong investors include market volatility (53%), interest rate changes (52%), and Trump’s economic policies (50%). In Singapore, the pivotal considerations are interest rate changes (58%) and economic policies (55%), with Hong Kong investors placing greater emphasis on international relations (45%) compared to their Singaporean counterparts (31%) (See figures 8a and 8b).
Simon
Tye,
CEO
of
MDRi,
commented:
“Our
survey
results
show
clearly
how
the
election
of
Donald
Trump
is
shaping
investor
sentiment
in
Hong
Kong
and
Singapore.
While
Hong
Kong
investors
demonstrate
a
more
bullish
outlook
towards
the
US
market,
Singaporean
investors
express
notable
caution.
These
differing
perspectives
highlight
the
impact
of
geopolitical
dynamics
on
local
economic
confidence,
which
businesses
must
navigate
in
the
evolving
landscape.”
Hashtag: #MDRi
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