Investors pivot to Asia, AI amid global volatility

Business leaders and institutional investors are increasingly turning to Asia and artificial intelligence (AI) as they reposition for growth in an uncertain global environment, according to a new survey by the Hong Kong and Shanghai Banking Corporation PLC (HSBC).

Conducted among 3,000 international businesses and institutional investors across 10 markets ahead of the bank’s annual Global Investment Summit, the survey shows that companies remain resilient despite a decade of global shocks and are continuing to invest.

An overwhelming 94 percent of respondents said they still see strong opportunities for international growth, while 87 percent indicated a greater willingness to take calculated risks compared to five years ago. Nearly three in four (72 percent) expect moderate to significant repositioning of their businesses over the next three years.

Around 41 percent of decision-makers identified mainland China as the market likely to grow most in importance to their economic relationships over the next five years

Asia, particularly mainland China, has emerged as a key focus area. Around 41 percent of decision-makers identified mainland China as the market likely to grow most in importance to their economic relationships over the next five years -- more than any other region globally.

At the same time, 93 percent of organisations plan to increase cross-border trade or investment over the next five years, with 91 percent expecting these flows to become more regionally concentrated.

AI and technology are now central to global investment decisions. About 50 percent of respondents cited access to AI, critical technologies and infrastructure as a top influence on international strategy, on par with market growth and client demand.

Moreover, 51 percent pointed to strong AI and data infrastructure, along with competitive energy costs, as key drivers when increasing exposure to specific markets.

Respondents expect AI to deliver major benefits in the near term, including improved productivity and workforce efficiency (56 percent), enhanced forecasting and modelling (48 percent), and greater innovation alongside cost savings (46 percent).

Notably, 32 percent believe AI will fundamentally reshape their core business models within three years.

Institutional investors are already acting on this shift, with 49 percent identifying increased exposure to AI and technology themes as their primary portfolio strategy for 2026. Only 14 percent expect to make no significant changes to their approach.

The survey also highlights a structural shift in how businesses view volatility. About 95 percent of respondents now see volatility as a permanent feature of the global economy rather than a temporary disruption.

In response, 88 percent have recalibrated their capital allocation strategies, while 53 percent reported extending their investment horizons compared to three years ago, signalling a move towards longer-term positioning.

Regional dynamics are also evolving. Businesses in the United Arab Emirates (UAE) and Saudi Arabia are increasingly focusing on supply chain reconfiguration, with 94 percent of respondents expecting cross-border trade and investment to become more regional in nature.

Despite ongoing uncertainty, 89 percent of businesses and investors are increasing capital deployment in high-growth markets, reflecting strong confidence in long-term returns.

“Our Global Investment Summit survey highlights a structural transformation in the global economy,” said Michael Roberts, CEO of HSBC Bank PLC and CEO of Corporate and Institutional Banking.

“Trade and investment flows are becoming more regional, Asia is growing in strategic importance, and technology is reshaping how and where capital is deployed.”

He added that business leaders are recalibrating their operations, investment strategies and capital allocation as global complexity continues to rise.