Asians with Deep Wallets Flee Trump's America for Asian Markets
Wealthy Asians fear Trump's policies
With a jaw-drop, Asia's wealthy families are turning their backs on America, thriving on fear of Trump's trade policies. Billions could go flow into other markets, and Europe might just reap the benefits.
Economic Overview Trump's Economic Policy: A Stormy Seas for World Trade According to a report by financial portal Bloomberg, this shift is becoming more obvious, so-called family offices are shedding their investments in the US. These firms manage substantial private assets independently of banks. One such family office, responsible for managing assets for Chinese billionaires, has completely abandoned its US holdings, intending to redirect profits towards Asia.
The trend is moving: the ultra-wealthy are scaling back their engagement in the US. They cite the risk of a recession as the primary concern. Clifford Ng, a managing partner at the law firm Zhong Lun in Hong Kong, who advises wealthy families, agrees and places the blame on former President Trump. "Many in the Chinese business world and other countries were betting on Trump the dealmaker, not Trump the protectionist," Ng said.
Economic Forecast "false start" for Trump: US Economy Falters Unexpectedly in Early 2025 Henry Hau, CEO of the Infinity Family Office in Hong Kong, sees a similar pattern: "For the first time, some families are contemplating divesting from US investments," he declared to financial portal. Prior to this, these families had weathered the dot-com bubble, the Asian financial crisis, and the global crisis of 2008 without losing their confidence in US investments. Now, some are considering redistributing 20 to 30 percent of their US portfolios to China and Europe.
It remains to be seen just how extensive this capital shift will be. US assets still represent a considerable chunk of many portfolios. Some family offices told Bloomberg they'd rather observe than sell, with three leaders regarding the US as an unreplaceable investment haven.
Unpredictable Growth of Asian UHNWIs
Asian tycoons with a net worth of at least $30 million are increasingly shying away from US investments due to the uncertainty surrounding trade and tariffs caused by Trump's policies. This trend underscores a broader shift, with Asian wealth being concentrated more on domestic and regional markets such as China and Hong Kong. Instead of preservation, wealth creation and protection are taking center stage[1][3].
In tandem with this shift, the rise of single-family offices (SFOs) in Asia has accelerated exponentially. These offices, which manage the assets of ultrarich families, play a pivotal role in managing and transferring wealth. In the coming years, nearly $6 trillion will be transferred to the next generation in Asia[5]. Unlike their Western counterparts with centuries-old offices focusing on preservation, many Asian SFOs are newer and have a stronger growth orientation. Asian UHNWIs tend to be more global but are also showing a significant preference for investing within Asia rather than in the US[5][3].
Megatrends Shaping the Future
Source: ntv.de, jki
- Ultra-high-net-worth individuals
- Trade Conflicts
- Asian Markets
- Family Offices
Insights:
- The "capital outflow" trend among Asian UHNWIs is becoming more apparent as they shift their focus towards Asian markets to avoid trade uncertainty and unpredictable tariffs.
- Single-Family Offices (SFOs) in Asia are booming, managing trillions in wealth transfers, with a focus on regional growth rather than mere preservation.
- Nearly half of all new high-net-worth individuals are expected to come from Asia between 2025 and 2028, further solidifying capital inflows into the region.
- Trump-era trade tensions have caused a significant realignment of ultra-wealthy Asian investors' portfolios, effectively moving funds away from the US market.
- In light of the uncertainties surrounding Trump's trade policies, Asian family offices are redirecting their investments, abandoning their US holdings and shifting focus towards Asian markets.
- Clifford Ng, a managing partner at Zhong Lun in Hong Kong, believes that many Asian businesses, like Chinese billionaires, were expecting a dealmaker instead of a protectionist from Trump, leading to this shift.
- Henry Hau, CEO of Infinity Family Office in Hong Kong, acknowledges a shift in mindset among some families who are now contemplating divesting from US investments and allocating 20 to 30 percent of their portfolios to China and Europe.
- Asian UHNWIs, with a net worth of at least $30 million, are increasingly preferring to invest within Asia rather than in the US due to trade and tariff uncertainties caused by Trump's policies.
- Single-family offices (SFOs) in Asia are booming, managing trillions in wealth transfers, and are more focused on regional growth than mere preservation, according to recent insights.
