A recent correction in technology stocks is unlikely to diminish Chinese investors’ confidence, as they remain focused on long-term growth and Beijing’s commitment to the sector. Judy Hsu, CEO for wealth and retail banking at Standard Chartered, highlighted that high-net-worth individuals in mainland China continue to believe in the potential of tech firms, including AI start-ups and IT infrastructure builders, despite concerns over high valuations.
The optimism stems from breakthroughs such as Chinese AI firm DeepSeek, which has significantly impacted the market. Since late January, its advancements in large language models have spurred a rally in Hong Kong and mainland tech stocks, demonstrating performance comparable to OpenAI’s ChatGPT while operating at a fraction of the cost and computing power. This success aligns with President Xi Jinping’s push to integrate technology and industry to drive economic growth.
The excitement surrounding DeepSeek propelled the Hang Seng Tech Index up nearly 30% between early February and March 18. However, the enthusiasm has slightly waned, with the index experiencing an 8.5% decline since. Despite this setback, Hsu emphasized that Chinese investors’ risk appetite remains strong, with many increasing their allocations to Asian tech assets, anticipating further advancements in the sector.
Standard Chartered, a key player in Hong Kong’s financial sector, has been expanding its services to cater to the rising demand for wealth management among affluent Chinese clients. The bank is investing in talent and digital technologies to enhance its offerings, particularly as mainland corporations accelerate their global expansion.
To support this growth, Standard Chartered plans to increase its team of relationship managers in Hong Kong, Singapore, and the UAE. It expects to oversee an additional US$200 billion in new client funds over the next five years and has committed US$1.5 billion to achieve this target. As an emerging markets-focused lender operating in over 50 countries across Asia, the Middle East, and Africa, the bank is positioning itself to capture the wealth growth in these regions, with Hong Kong remaining its largest market.
In mainland China, international wealth management firms typically rely on mechanisms such as the qualified domestic institutional investor scheme to facilitate Chinese investments in global markets. Standard Chartered aims to leverage these programs while expanding its role as an international service provider to meet the evolving financial needs of China’s high-net-worth individuals.
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