Chinese wealth investors seek safety amid economic turbulence

Image Credits: UnsplashImage Credits: Unsplash
  •  27% of China’s high-net-worth investors moved wealth into low-risk assets like cash and bonds in 2024 amid economic uncertainty.
  • US-China tariff tensions and regulatory constraints limited investment options, reinforcing demand for stability.
  • Some wealthy investors are exploring domestic tech and green energy sectors, while global hubs compete to attract Chinese capital.

[WORLD] China’s high-net-worth investors prioritised “safety” in 2024 amid a period of economic turbulence, according to a new report, and analysts expect the trend to continue as US President Donald Trump’s tariff war sends shock waves across global markets.

The ongoing trade tensions between the U.S. and China have exacerbated market uncertainties, with retaliatory tariffs affecting key sectors such as technology, manufacturing, and agriculture. This has led many wealthy investors to adopt a defensive strategy, shifting away from volatile equities and into more stable holdings. Economists warn that prolonged trade disputes could further dampen investor confidence, particularly in export-driven economies like China.

The survey by data and analytics firm GlobalData found that 27 per cent of high-net-worth Chinese investors parked their wealth in low-risk assets like cash, near-cash products and bonds last year, as they waited for the economic storm clouds to blow over.

This flight to safety mirrors a broader regional trend, with affluent investors across Asia-Pacific increasing their allocations to fixed-income instruments and gold. Analysts attribute this shift not only to geopolitical risks but also to slowing GDP growth in major economies, including China, where policymakers have been grappling with a property market downturn and subdued consumer spending.

This cautious stance “opens the door for private wealth managers to guide clients towards undervalued investments”, the company noted.

Some financial advisors are now recommending structured products and dividend-paying blue-chip stocks as a middle ground for risk-averse clients seeking modest returns. Additionally, there’s growing interest in alternative assets such as private equity and venture capital, particularly in sectors like renewable energy and healthcare, which are seen as more resilient to trade-related disruptions.

However, not all high-net-worth individuals are retreating entirely from risk. A segment of younger, tech-savvy investors continues to explore opportunities in digital assets and AI-driven startups, betting on long-term growth despite short-term volatility. This divergence highlights the varying risk appetites within China’s wealthy demographic.

Looking ahead, market watchers suggest that any de-escalation in U.S.-China trade tensions—or signs of stronger domestic stimulus—could prompt a gradual return to higher-risk investments. Until then, wealth managers are likely to emphasize diversification and capital preservation as key strategies for their clients.


Read More

Housing Middle East
Image Credits: Unsplash
HousingJuly 11, 2025 at 5:30:00 PM

Why renting is better than buying in Singapore for many today

In Singapore, home ownership has long been considered a sign of success, stability, and financial prudence. But that default is now under quiet...

Financial Planning Middle East
Image Credits: Unsplash
Financial PlanningJuly 11, 2025 at 5:00:00 PM

How to raise a financially independent teen

It’s always been a challenge to grow up and become financially independent—but today’s teens are navigating a more complex, more expensive world than...

Credit Middle East
Image Credits: Unsplash
CreditJuly 11, 2025 at 5:00:00 PM

The hidden link between airline rewards and credit card fees

If you've ever booked a “free” flight using your airline miles, you’ve quietly benefited from one of the most misunderstood financial systems in...

Relationships Middle East
Image Credits: Unsplash
RelationshipsJuly 11, 2025 at 4:30:00 PM

Why your baby might cry so much?

The 3 a.m. hallway sway. The creak of floorboards you’ve memorized. A worn-in chair that rocks half-asleep. The night feed isn’t just a...

Investing Middle East
Image Credits: Unsplash
InvestingJuly 11, 2025 at 4:30:00 PM

What you need to know about the cryptocurrency regulations in Singapore

If you think Singapore is some crypto Wild West where you can stake, trade, and launch your own coin without anyone batting an...

Leadership Middle East
Image Credits: Unsplash
LeadershipJuly 11, 2025 at 4:30:00 PM

Why teams overwork—and how leaders can fix it

The people aren’t broken. The system is. That’s the clearest takeaway from new organizational research studying overwork among high-performing teams. It’s not that...

Careers Middle East
Image Credits: Unsplash
CareersJuly 11, 2025 at 4:30:00 PM

How to build a career that survives constant change

We don’t talk enough about how exhausting it is to keep reinventing yourself. In theory, “adaptability” is a badge of honor. In real...

Tax Middle East
Image Credits: Unsplash
TaxJuly 11, 2025 at 3:30:00 PM

What the Federal EV tax credit ending means for your finances

If you’ve been waiting for the right time to buy or lease an electric vehicle (EV), that time may be now—whether or not...

Economy Middle East
Image Credits: Unsplash
EconomyJuly 11, 2025 at 2:30:00 PM

Does China’s economic growth mask deeper fiscal gaps?

On paper, China’s economy is on track. Analysts are bracing for a second-quarter GDP print near the government’s 5% full-year target—a number that,...

Politics Middle East
Image Credits: Unsplash
PoliticsJuly 11, 2025 at 2:00:00 PM

Trump’s 2025 trade agenda targets China—but not the way you think

In the Trump administration’s latest maneuver to reshape federal institutions, the US State Department has moved ahead with a formal reduction in force...

Economy Middle East
Image Credits: Unsplash
EconomyJuly 11, 2025 at 2:00:00 PM

Singapore business adaptation grant 2025 to help firms navigate tariff pressures

As global trade routes realign under fresh tariff regimes, Singapore is not waiting to be caught off guard. In July 2025, the Singapore...

Economy Middle East
Image Credits: Unsplash
EconomyJuly 11, 2025 at 1:00:00 PM

How Trump’s trade tactics are reshaping the global supply stack

If you’re reading Trump’s trade moves like it’s 2018 again—tit-for-tat tariffs, trade war optics—you’re behind. This time, it’s not about hammering China. It’s...

Load More