New Delhi
Asia is channeling more of its savings into local investments, strengthening financial resilience and reducing dependence on the US dollar, according to an HSBC report released on Thursday. The study said India and China are leading this “Asia buys Asia” trend, which has accelerated since 2012.
The report highlighted that Asian households are increasingly shifting from traditional savings like gold, jewellery, and cars toward financial products such as mutual funds, pensions, and insurance. Assets under management in the region stood at $22 lakh crore by end-2024, more than triple 2012 levels. This represents 76 percent of Asia’s GDP, up sharply from 44 percent in 2012.
“China and India have grown the quickest,” the report noted, with collective investments such as mutual funds outpacing pensions and insurance. Recently, however, pension schemes have also gained traction.
The report suggested that regulatory support is crucial for sustaining the trend. In India, tax benefits on Systematic Investment Plans (SIPs) have encouraged more investors to enter mutual funds, providing consistent inflows. In Singapore, the Monetary Authority has promoted local asset managers investing in small and mid-cap companies.
HSBC believes this structural shift benefits the entire financial ecosystem. Banks can help households redirect savings from gold and jewellery toward financial instruments, especially in rural regions where participation remains low. Asset managers can design tailored pension and savings products, while exchanges and brokers will benefit from improved liquidity in equity markets.