Top of main content

China Perspectives - Onshore risk appetite continues to improve despite mixed signals

Regional Outlook
This insight is about
China Equity
China Perspectives
A-SHARE
China

China Perspectives - Onshore risk appetite continues to improve despite mixed signals

by Desmond Kuang, Chief Investment Officer, China, HSBC Private Bank and Premier Wealth
Sep 9, 2025

  • China equity has out-performed MSCI World and US indices since end of June, and this was led by the onshore A-share market instead of Hang Seng Index for a change. Risk appetite of onshore retail investors played a part in this outperformance and the abundance in household savings have started to flow into risk assets on the margin, as shown by rising equity mutual fund issuance and surging margin financing balance
  • On the other hand, we see mixed factors affecting the equity market investor sentiment. Another 90-day truce in Sino-US tariff war and the talk of a potential leadership summit suggests that near term geopolitical risk overhang on China stocks is contained. In the meantime, policies signal remained positive. The government has announced that the Fourth Plenum of the 20th Party Congress will be held in October and will focus on reviewing the 15th Five Year Plan – an agenda that is biased towards growth and reform
  • Yet the economy appears to have softened after a strong H1, with July growth in investment, production and consumption missing expectation. These may point to waning impact of export frontloading and consumer durable goods subsidies, highlighting the importance of continued fiscal, structural and monetary support to address insufficient demand
  • Reported earnings of CSI300 company show 6.8 per cent YoY growth in H1, with sharp sectoral divergence. IT, industrials and consumer sectors led performance, while energy and property continued to face substantial pressure. We maintain a constructive view on A-share market and broader China equity, but focusing on the AI empowered technology leaders and policy-supported consumer winners

This is a marketing communication from HSBC Private Bank, which is the main private bank business within the HSBC Group. Private banking services are delivered by various HSBC companies around the world, depending on local laws and regulations. The services described in this document may be provided by different HSBC entities, and members of the HSBC Group may also trade in the products mentioned here.

 

This document is not independent investment research under the European Markets in Financial Instruments Directive (‘MiFID’) or other relevant regulations and is not subject to restrictions on dealing ahead of its distribution. This means HSBC and its staff may have an interest in the products or services mentioned before this document is shared with you.

 

The information in this document is for general information only and is intended for HSBC Private Bank clients. It does not constitute, and should not be construed as, legal, tax or investment advice, or a solicitation, offer, or recommendation to buy or sell any financial products or services.

Some HSBC offices may act only as representatives of HSBC Private Bank and are not permitted to sell products, provide services, or offer advice to customers. Not all products or services are available in all jurisdictions. For a complete list of HSBC Private Bank entities and their regulatory status, please visit our HSBC Private Bank website.

 

Before proceeding, please refer to the full long macro disclaimer and the Terms and Conditions available at HSBC Private Bank website which provide further important information about the use of this material.
Back to top 

Related Insights

Listening to what you have to say about services matters to us. It's easy to share your ideas, stay informed and join the conversation.

© Copyright HSBC Private Bank 2026. All rights reserved