Hang Seng Investment Management: Expects the fundamentals of Asian bonds to remain robust in 2025, with the highest optimism for U.S. stocks

According to the Zhitong Finance APP, Li Peishan, Director and CEO of Hang Seng Investment Management, stated that global investment-grade bonds remain attractive, and the firm prefers Asian bonds, with investor demand expected to remain strong. Firstly, the firm expects the fundamentals of Asian bonds to remain robust in 2025. Even though certain industries and specific issuers may be affected by U.S. tariffs, most Asian companies are expected to enter 2025 with solid balance sheets and sufficient rating buffers, and the firm anticipates a significant reduction in default rates in 2025. Given that the yields on Asian bonds continue to be attractive, investor demand for them is expected to remain strong.

Li Peishan noted that in terms of assets under management, Hang Seng Investment is the largest ETF manager in Hong Kong. As of December 2024, Hang Seng Investment manages a total of 13 ETFs, with a total management scale of HKD 167.1 billion, accounting for 36% of the total market capitalization of Hong Kong's ETF market. In 2024, the firm's ETFs had an average daily trading volume of HKD 12.6 billion, representing about 68% of the overall Hong Kong ETF market.

The firm stated that in terms of asset allocation for 2025, it holds a "neutral" view on the mainland and Hong Kong stock markets, is optimistic about high-yield stocks in the Hong Kong market, holds the "most optimistic" view on the U.S. stock market, is "optimistic" about the Japanese stock market, but holds a "pessimistic" view on the European and UK stock markets