As Asian private bankers start to move beyond traditional stock and bond allocations, private market instruments, gold and the renminbi are becoming increasingly attractive as alternative investments.
Amid the backdrop of US policy shocks and growing concerns over de-dollarization intensifying market volatility, bankers are urging investors to reconsider the 60/40 portfolio – an investment strategy that allocates between stocks and bonds. Due to its fundamental mechanism being out of balance for a prolonged period recently, this strategy has lost some of its appeal, as the performance of US stocks and bonds has become more synchronized rather than offsetting each other.
James Cheo, Chief Investment Officer for HSBC Private Banking and Wealth Management in Southeast Asia and India, said at the 2025 Global Private Banker Summit held in Singapore on June 4th that, on the contrary, alternatives can be added to the investment portfolio to provide necessary diversification and hedging.
He said, “For future asset allocation, it may no longer be just 60/40. Instead, one-third could be invested in stocks, one-third in public bonds, and even one-third in alternative investments including private equity, private credit, and gold.”
Cheo called for an increase in alternative investments in the investment portfolio, which echoes the recent global sentiment. In March this year, Larry Fink, the CEO of BlackRock, advocated a 50/30/20 allocation ratio in his annual letter to investors, with 20% of the investment to be allocated to private assets such as real estate, private credit and infrastructure.
After the tariff announcement on April 2nd, the US stock market and the US dollar were sold off, raising concerns about de-dollarization, which prompted portfolio managers to also shift to other currencies.
Wu Zhixiong, President of CICC for Southeast Asia and South Asia and CEO of CICC Singapore, said at the meeting that in the long term, RMB products will become one of the asset classes worth investing in. He said that if China continues to invest in infrastructure in the region, it is natural for governments to pay Chinese developers and construction companies in RMB rather than in US dollars.
Meanwhile, Cheo of HSBC said that the capital pool closest to the US dollar and most likely to be an alternative is the euro, and asset managers should start considering whether their investors should increase their investment in the euro.
Eddy Loh, the chief investment officer of wealth management at Maybank Group, expressed optimism about gold at the same meeting. He said that recent data indicated that many central banks in Asia and the Middle East still have room to include gold in their reserves.
Technical analysis:
Gold: Yesterday, the operation of directly breaking through the buy stop in the blue area provided by our plugin was in perfect alignment with the actual price movement. It achieved a profit-to-loss ratio of over 7 times. Today, we will closely monitor whether the price can effectively break through the resistance near 3335. We suggest attempting to capture the long signal based on this. For detailed positions, please consult the plugin.
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Nasdaq: In the recent trading days, the price has consistently maintained a volatile pattern after the liquidity sweep. We suggest continuing to look for sell stop positions during the pullback after reaching new highs. At the same time, be prepared to attempt 1-2 kinetic breakouts and sell operations if the recent rebound’s key support is broken. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: Yesterday, we provided a liquidity sweep operation reminder at 64.73, marked as a yellow block in the plugin. After the price broke below 64.73, it began to stabilize, but the rebound did not return above 65.04, so the reverse buy stop operation did not enter. However, the entry price around 65.05 is still a notable momentum breakthrough signal point. If the price starts to recover and rise again, a long position can be attempted here. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key financial data and events to focus on:
At 14:30, Huawei’s Pura 80 series and new products for all scenarios were launched in China.
17:30 The chief economist of the European Central Bank, Lane, participates in a panel discussion.
At 20:00, ECB Executive Board member Fabio Panetta will deliver a speech on “The Current State and Future of Digital Payments, and the Way Forward for Europe”.
20:30 US Core CPI for May (YoY, Unadjusted)
20:30 Unadjusted U.S. Consumer Price Index for May (Year-on-Year)
22:30 U.S. EIA Crude Oil Inventory Change (in thousands of barrels) (to 0606) last week
