HSBC Asset Management suggests Chinese equities are showing resilience amid global economic uncertainties, driven by a shift away from US exceptionalism. The firm anticipates global stock markets, particularly China, will outperform in 2025 due to attractive valuations despite mirroring US profit growth. The Hang Seng Index has increased 20% this year, signaling growing investor confidence in Chinese markets as an alternative to US assets.
HSBC Asset Management identifies a significant trend of resilience in Chinese equities amidst global economic uncertainties, attributing this to a waning belief in US market exceptionalism. This shift is expected to pave the way for global stock markets, particularly Chinese equities, to outperform in 2025. Joseph Little, HSBC's global chief strategist, forecasts that profit growth in the Chinese stock market will match that of the US, but significantly, Chinese markets present more attractive valuations. This perspective is reinforced by Caroline Yu Maurer, Head of China and Core Asia Equities at HSBC Asset Management, who notes the resilience of Chinese equities even with ongoing uncertainties surrounding US tariffs. Supporting this view, Hong Kong's Hang Seng Index has recorded a substantial 20% increase year-to-date, while the CSI 300 Index, representing China's largest onshore companies, has demonstrated stability. These market movements indicate heightened investor confidence and a strategic search for diversification and resilience outside of US assets.
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