"Similar to China, HNWIs (high net worth individuals) in Hong Kong prefer to keep their investments closer to home, with nearly 60 percent of their foreign assets invested in Asia Pacific in 2014, largely in financial services sector. However, with a rather grim regional economic outlook as the Chinese's economy continues to slowdown and the impact of Shanghai stock market crash is taking its toll widely than expected, local investors are now forced to 'diversify' and 'select' where they want to invest," said Roselyn Lekdee, economist at WealthInsight, in a report on Thursday.
The wealth research company forecast that Hong Kong millionaires' investments in Europe would fall to 4.9 percent of foreign HNWI assets by 2019. That would be down from 7.2 percent in 2014 and 11.7 percent in 2010, indicating a trend of millionaires' looking further afield.
"Emerging markets such as Latin America and Africa have become more attractive due to larger profit margins in their investment opportunities, particularly in FMCG (fast moving consumer goods), infrastructure and impact investments," said Lekdee.