Some of Asia’s wealthiest families are significantly reducing their exposure to U.S. investments, citing increased unpredictability following President Donald Trump’s tariff policies. One major Chinese family office has completely divested from U.S. assets and plans to redirect capital towards Asia. According to a senior executive at a leading European private bank, the extent of this withdrawal by affluent clients and institutions is the most pronounced in over thirty years and may signal the start of a long-term shift. In a similar move, a senior Asian banking executive has trimmed 60% of his personal U.S. asset holdings, opting instead for cash and gold as safer stores of value.
Roughly ten family offices and advisors managing billions in ultra-high-net-worth portfolios have confirmed they are either trimming or freezing U.S. investments. These adjustments are focused mainly on equities and Treasuries, with investors pointing to erratic policy changes, growing economic uncertainty, and the looming risk of a recession. Many have chosen to remain anonymous due to the private nature of their financial strategies.
Henry Hau, CEO of Infinity Family Office in Hong Kong, noted that for the first time, several families are considering partially exiting U.S. investments. Despite weathering past crises like the dot-com crash and the 2008 recession with continued U.S. exposure, they are now eyeing a 20% to 30% reallocation of their portfolios toward markets in China and Europe. Just a few months ago, the mood among Asia’s business elite was bullish following Trump’s return to power, boosting bank and tech stock valuations. Today, that enthusiasm has sharply reversed.
Hong Kong and mainland China, despite dealing with a property slump, are among the main beneficiaries of this capital shift, along with Europe. Hong Kong’s main index has risen over 13% this year, while the S&P 500 has declined about 3%. Investors such as Carman Chan, founder of Click Ventures, are actively taking profits from the U.S. market and reallocating to Asia, where valuations appear more attractive.
This retreat from U.S. markets extends beyond private investors. Asset managers like Janus Henderson and Amundi SA also report reduced interest in U.S. holdings. Although the U.S. remains a critical financial hub, many investors now question its reliability, especially around legal protections and long-term stability. Some remain cautious and are waiting for clarity in upcoming trade negotiations, but the trend of rebalancing appears firmly underway.
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