Societe Generale Global Markets Conference makes its debut in Hong Kong

The half-day event brought together industry leaders, experts and investors to discuss the key megatrends that are shaping this period of transformation in the global economy. 

Wealth patterns are shifting. Geopolitical tensions are rising. The climate is changing. Technology is transforming the way we work. 

The conference tackled each of these sources of uncertainty for investors under the themes of asset allocation, Asia investing and geopolitics. But it also underlined the positive outlook for Asia and the region’s continued economic development. 

“The pace at which our world evolves has never been seen in our history, but this forum showed that uncertainty can also be a source of opportunity,” said Jerome Niddam, Head of Global Markets for Asia Pacific at Societe Generale. “Every conversation shared has been invaluable, shedding light on the unpredictable market dynamics we’re dealing with.”

When (geo)politics meets asset allocation

Taking place in the run-up to the US presidential election, the conference provided an opportunity to explore the changing economic and political landscape around the world.

While the US appears to be heading for a soft landing, the audience heard that a Republican clean sweep of the presidency and congress in the US elections could lead to inflationary pressures from tax cuts and trade tariffs, with implications across asset classes. 

In particular, the conference highlighted the prospects of a period of volatility in US Treasuries in the event of a Republican victory. This proved especially prescient in the weeks that followed, with 10-year US yields spiking almost 15 basis points immediately after Donald Trump’s election victory on 5 November 2024. 

Europe, meanwhile, faces a number of growth challenges, according to the speakers. Germany is grappling with recession, and efforts to stimulate innovation and investment have so far failed to revive economic growth. 

Nonetheless, the event highlighted the outperformance of periphery markets such as Italy and the strong progress of green innovation as areas of opportunities for investors. 

Asia investing in a shifting world order

Asian markets are changing, too. Asia’s excess savings – at around 40% of GDP versus about 17% in the US¹ – and accumulation of wealth are driving demand for ETFs and long-term savings plans that can support individuals in their retirement. Multi-asset products are becoming more popular among individual savers and in the insurance sector. Investors are also embracing private assets and semi-liquid assets such as infrastructure and private debt. 

The twin drivers of decarbonisation and digitalisation are also creating opportunities for global players as Asia ramps up investment in future-facing technologies. The growing use of artificial intelligence will also require huge spending on energy and data centres across the region. 

Digitisation also has benefits in an investment context. Cleaner data, faster processing and a larger set of data help machine learning models make better investment decisions. 

China’s appeal as an investment destination received a major boost after a strong run-up in Chinese equities in September on promises of a coordinated monetary and fiscal stimulus to support economic growth. However, uncertainty over the extent of the support package and a tense geopolitical climate have tempered investors’ enthusiasm.

The geopolitics of investment and trade

External risks in Asia remain concentrated around geopolitical issues, including the state of US-China relations, conflicts in Ukraine and the Middle East, and the future of globalisation. 

While the conference highlighted the economic risk around US trade policies after the 2024 election, it also emphasised Asia’s importance in the global economy. There is, for example, high potential around services exports – which are not captured by tariffs on goods. Speakers characterised changes in the relationship between Europe and China as ‘de-risking’ rather than decoupling. In their view, globalisation is not gone, but it has become more regionalised. 

Faced with a fast-evolving geopolitical outlook, the conference underlined the importance of resilience and adaptation to unlock opportunities in a changing world. Shifts in economic power are creating new financial centres; the response to climate change is driving green investments; disruptive new technologies are enhancing productivity. 

Uncertainty: An opportunity for growth and transformation

While the conference explored the uncertainty and complexity of today’s market environment, it also presented opportunities for growth and transformation. 

“Let resilience, innovation and collaboration be the principles that guide us as we navigate the future together,” said Niddam. 

Societe Generale is committed to building long-term partnerships with its clients by providing unique insights and solutions in these uncertain times. As markets continue to evolve, the bank is prepared to adapt and work alongside its clients at every step, ensuring their goals remain the top priority. 
 

^{1. www.mckinsey.com/mgi/our-research/asia-on-the-cusp-of-a-new-era}