Wealthy investors in Asia are increasingly utilizing complex structured products to place bets on stocks. The primary focus remains Chinese mega-caps, specifically Alibaba Group Holding Ltd.
Issuance of these products, which are linked to Hong Kong and Singapore equities, surged by 80% this year. This activity pushed the total value to a record of over US$200 billion. This renewed interest follows a significant rally in Alibaba’s shares during 2025.
The trend signals a shift in investor focus, moving away from U.S. names and back toward Hong Kong-listed equities. This movement is driven by the recovery in the Chinese market and the artificial intelligence frenzy. For much of 2025, 30% to 40% of equity-linked notes at some private banks tracked Hong Kong-listed stocks, marking a notable increase from the previous year.