Business / Industries

Investors more open to global assets and financial products

By Wu Yiyao in Shanghai (China Daily) Updated: 2014-04-26 07:25

China's investors are more inclined to put money into overseas assets than their global peers and are more aggressive in investing in financial products, a report released on Thursday in Shanghai said.

However, concerns over currency risks, uncertain conditions in the global markets and unfamiliarity with global opportunities may be keeping Chinese investors from allocating assets abroad, the report suggested.

The report, based on a recent survey by asset manager Legg Mason Inc that covered 4,320 investors worldwide, showed that 88 percent of the 201 people polled in China said they're more focused on international markets than they were five years ago. That's the highest level in Asia, and above the global average of 75 percent.

Investors more open to global assets and financial products

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Chinese are open to investing overseas, as they seek to enhance their returns. But most of their investments are still in the domestic market, said Matthew Schiffman, managing director and head of global marketing at Legg Mason.

More than 80 percent of Chinese investors' money is in domestic assets, the highest level in Asia. Chinese investors believe the top assets for the coming 12 months are domestic stocks, domestic bonds, real estate and gold and other precious metals.

The major barriers to investing internationally are global uncertainty and being unfamiliar with opportunities. The survey found that 45 percent of investors believe financial advisors can provide opportunities and access.

The survey also showed that Chinese investors have a higher risk tolerance (38 percent classify themselves as aggressive) and are the most aggressive compared with their Asian peers (33 percent) and global counterparts (35 percent).

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