BlackRock: APAC Investors Cut US Exposure, Shift to China and HK ETFs

Asia-Pacific investors are scaling back US asset exposure amid market volatility linked to US trade policies and fiscal challenges, BlackRock has revealed. According to Elaine Wu, Head of APAC Investment and Portfolio Solutions, a client survey showed more than 20% of global investors are exploring reductions in US-linked assets.

June marked the first instance of net selling in APAC-listed US equity ETFs since May 2023. In contrast, investors channelled USD19bn into China equity ETFs and USD5bn into Hong Kong ETFs from April to June.

Wu added that digital assets, including stablecoins, remain popular, fuelled by ETF momentum. While US assets still anchor many portfolios, diversification has become a key focus amid shifting sentiment.