According to a survey by BNY Mellon, nearly half of Asian investors plan to increase their investments in non-Asian companies over the next five years

Date: July 13, 2012

Tags: BNY Mellon, Asset allocation

According to a survey by BNY Mellon, nearly half of Asian investors plan to increase their investments in non-Asian companies over the next five years; while over half said secondary listings on Asian exchanges help identify non-Asian investments.

The survey, entitled “Asia's Evolving Investment Landscape”, looks into the current investment practices in Asia, based on 40 in-depth interviews with investors in Hong Kong, Singapore and China, representing more than US$60 billion in equity assets under management.

"We've known for years that 'home market bias' to invest in domestic companies is more pronounced among Asian institutions, and that there's a strong desire to correct that,” said Michael Cole-Fontayn, chief executive officer of BNY Mellon's depositary receipts business. “Now, we can see how ripe the opportunity is for global issuers and how they can increase their chances of cultivating ties to investors in Asia.”

The report focused on three types of investors: mainland Qualified Domestic Institutional Investors (QDIIs); Hong Kong- and Singapore-headquartered investment firms; and Hong Kong- and Singapore-based subsidiaries of global asset management firms.

The investors surveyed were particularly open to investing in companies that derive revenue from Asia, with 54% saying that it was a key criterion. In addition, a listing on a regional exchange universally increases both the awareness of non-Asia-domiciled companies and the likelihood that institutions in Asia will invest in them.