Affluent consumers in both Hong Kong and Singapore are feeling less than optimistic about the economy and are curtailing their spending sharply, according to new research from Ipsos.
The research firm' 'Affluent Asia' research has found that spending on most luxury categories has dropped sharply compared to three months ago.
Hong Kong’s affluent citizens are also "quite pessimistic" about the evolution of their personal financial situation, according to Ipsos: 31% predict a "much weaker" or "somewhat weaker" situation, while only 15% predict a "much stronger" or "somewhat stronger" situation. In Singapore, it's the reverse, with the "much stronger"/"somewhat stronger" contingent at 28% and the "much weaker"/"somewhat weaker" number at 16%.
Interestingly, Hong Kong’s affluent consumers believe that Singapore’s economy will improve next year. Singaporeans do not agree:
All this negative energy is impacting investment approaches, Ipsos also noted:
Stocks and securities remain the most owned investment product (83%), but the level of investment in stocks declined over the past 3 months for 35% of the affluent cohort in Hong Kong, Ipsos added. Meanwhile, investments in gold and precious metals (+44%), foreign currencies (+41%), life insurance (+26%) and government bonds (+31%) all increased significantly.
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