Affluent investors in Hong Kong and the Chinese mainland are maintaining a cautious outlook on market prospects while increasingly broadening their portfolios amid ongoing macroeconomic uncertainty, with long-term wealth growth emerging as a key priority, a new report says.

Results of the latest survey by global financial services group DBS show that average yearly return expectations among wealthy investors in the special administrative region and the Chinese mainland eased to 7.9 percent for 2026, down from 9.3 percent for 2025.

Meanwhile, investors now prioritize long-term wealth growth, with 66 percent of respondents citing it as their top financial objective – an increase of 9 percentage points from a year ago.

“We should not interpret this as meaning that investors are becoming pessimistic about the market,” Belinda Hsieh, DBS Hong Kong’s head of treasures investment product and advisory for consumer banking group and wealth management, said on Wednesday.

“Instead it just reflects a recalibration following a period of market volatility, as we all see the Middle East crisis, and the volatility of artificial intelligence,” she said.

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The survey, conducted in June and July, covered more than 1,600 investors – including local residents and expatriates – with a minimum of HK$1 million ($128,000) or 1 million yuan ($148,000) in assets across the HKSAR and the Chinese mainland.

The findings indicate a growing emphasis on portfolio diversification, as respondents have been holding a wider range of investment products. On average, each investor holds 4.5 product types in 2026, up from 4.2 in the previous year, with stocks the most widely held category.

DBS also said that affluent investors’ allocation preferences vary across markets, with those on the Chinese mainland showing a stronger inclination toward insurance products, while those in the SAR continue to favor equities.

Among other financial product categories, alternative investments – including precious metals, commodities and hedge funds – recorded the fastest growth, according to the survey results. They accounted for at least 18 percent of respondents’ portfolios, a sharp rise of 10.3 percentage points from 8 percent in 2025, making them the second-largest asset class.

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Exchange-traded funds also saw a modest increase of 2 percentage points in allocations, while exposure to investment funds and mutual funds declined.

Hsieh said this shift reflects heightened market volatility, prompting investors to mitigate risk by diversifying into alternatives. “Investors are not only considering what market exposure they want, but also which vehicle will provide the most appropriate return that they want to obtain,” she added.

Forty-six percent of respondents said they plan to increase allocation in gold in the next 12 months, while 45 percent will raise their ETF investments. As for investment themes, affluent investors found AI and technological innovation, yield-generating assets, and healthcare most appealing to them, the survey shows.

Contact the writer at gabylin@chinadailyhk.com