Asian Private Banker’s second annual China Global Wealth Summit, held in Hong Kong last week, brought together around over 450 delegates from leading Chinese wealth management firms, banks, global private banks, asset managers and family offices to discuss the internationalisation of Chinese wealth and the evolving needs of global Chinese investors. 

Across a day of panel discussions and fireside chats, industry leaders explored how Chinese clients are adapting their portfolios, investment strategies and wealth planning approaches amid shifting market conditions, geopolitical uncertainty and a rapidly changing global investment landscape. 

Several clear themes emerged on how Chinese investors are repositioning portfolios to navigate the years ahead.

With markets moving more in sync during periods of stress and geopolitical risks becoming more frequent, investors are looking for better ways to spread risk. Alternatives such as hedge funds, multi-strategy funds, and income-focused equity strategies are increasingly being used not just to improve returns, but to make portfolios more stable overall.

At the same time, investors are becoming much more focused on liquidity and flexibility. It is not just about earning higher returns, but also about being able to access money when needed and avoid big losses during market swings. This is pushing demand for more liquid alternative products and income-generating strategies that can hold up better in volatile markets.

Private markets like private equity and private credit are still popular topics, but investors are more careful now. While these assets are attractive, there are concerns about how easy they are to exit and how true the “low volatility” really is. Newer structures that offer some liquidity are helping, but investors are still selective and prefer managers they fully trust.

Another clear trend is that investors are often chasing popular themes, especially in areas like technology and artificial intelligence. Many are also using a “core and satellite” approach, where most of the portfolio is stable, but a small part is used for higher-risk, higher-return ideas.

Exchange-traded products are also becoming more widely used in private wealth portfolios. What used to be mainly retail tools are now being used by more sophisticated investors to gain quick and flexible exposure to different markets and themes.

At the same time, younger and next-generation investors are more global in their thinking and more open to taking risks, including in alternatives and new investment ideas.

Overall, a broader shift is underway, with investors increasingly diversifying wealth across jurisdictions and structures to enhance flexibility and security. In that context, Hong Kong and Singapore are seen as complementary hubs, each playing distinct but important roles in global wealth flows.