London Daily

Focus on the big picture.
Thursday, Oct 02, 2025

Hong Kong’s wealthy build cash piles as protests deepen

Hong Kong’s wealthy build cash piles as protests deepen

Rich residents’ cash holdings at highest level in a decade as recession fears grow
Hong Kong’s wealthy residents have boosted their cash holdings to multiyear highs as the trade war and political unrest fan fears of recession.

Rich individuals in the city are holding close to a third of their total holdings in cash, a level not seen since the 2008 financial crisis, according to consultancy Capgemini.

Hong Kong’s family offices — the advisers that invest the wealth of the super-rich — have also turned to cash, with holdings at 12-14 per cent, according to research from UBS’s wealth management division and data provider Campden Wealth.

That is the highest level since the survey was launched in 2015 and is “considerably higher than the global average”, said Enrico Mattoli, head of Global Family Office in Greater China at UBS Wealth Management.

Dr Rebecca Gooch, director of research at Campden Wealth, said: “Family offices are cautious about geopolitical tensions, and there is a widespread sense that we’re reaching the end of the current market cycle.” Of the Hong Kong family offices surveyed, 56 per cent anticipate a recession next year.

Hong Kong’s economy grew at its slowest annual pace since the financial crisis in the three months to June — figures that did not yet capture the impact of the unrest, prompting some analysts to predict that recession was imminent.

For investors already grappling with the impact of the US-China trade war, Brexit and tension in the Middle East, Hong Kong’s pro-democracy protests were “another straw on the camel’s back”, said John Woods, chief investment officer for Asia Pacific at Credit Suisse.

Demonstrations in the city have rumbled on for 19 weeks, with authorities failing to contain a movement organised around the kung-fu principle “be water”. Investors, as a result, have one more reason to be liquid, according to wealth managers.

In its most recent survey of Hong Kong residents with more than $1m in investable assets, in the first quarter of this year, Capgemini found that cash made up 30.3 per cent of portfolio allocations, overtaking equities — at 28.7 per cent — for the first time since 2015. Those weightings echo trends last seen in 2008, a year in which global stocks took a beating.

The proportion of cash holdings will probably have grown further over subsequent quarters this year, with wealthy investors “gradually moving to other conservative allocations like alternative investments, cash, and fixed income”, said Chirag Thakral, deputy head of market intelligence at Capgemini.

Hong Kong’s stock market has struggled amid the street protests. The benchmark Hang Seng has lost 4.6 per cent since the end of July, when clashes between demonstrators and police took a violent turn. It is the world’s worst-performing developed market this year.

A fall in global bond yields — $13.69tn of which are now in negative territory — has also burnished the appeal of cash, according to wealth managers.

Institutional investors, too, also asking for “highly liquid solutions”, said Paul Sandhu, head of multi-assets quant solutions for Asia Pacific at BNP Paribas asset management. “They want something to hold on to until the time comes when they can invest.”
Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×