Foreign Bank: Maintain Neutral Global Equity Allocation, Adopt Diversified Strategy for AI Layout

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BNP Paribas Wealth Management maintains a neutral stance on global equities amidst geopolitical risks, recommending a diversified investment strategy for the AI sector. It sees diversification value in China and Hong Kong stocks within Asian markets and remains cautious on US equities.

Q: What is the direct answer?

BNP Paribas Wealth Management maintains a neutral stance on global equities amidst geopolitical risks, recommending a diversified investment strategy for the AI sector. It sees diversification value in China and Hong Kong stocks within Asian markets and remains cautious on US equities.

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Source: https://www.cna.com.tw/news/afe/202605050139.aspx | Date: Date unavailable

Central News Agency (Central News Agency reporter Lu Yen-tzu, Taipei, May 5th) Geopolitical risks continue to affect the global market sentiment, and BNP Paribas Wealth Management today pointed out that it maintains a neutral allocation outlook for global equities. In the Asian market, China and Hong Kong stocks have diversification risk value; for the US stock market, it remains cautious. Artificial Intelligence (AI) remains a core long-term trend, and a diversified allocation strategy is recommended. BNP Paribas Wealth Management today released its bi-weekly newsletter, stating that although global stock markets have largely recovered from previous declines due to Middle East conflicts, high energy prices continue to put pressure on economic growth prospects, making asset allocation more focused on flexible adjustments and risk diversification. Regarding equities, BNP Paribas Wealth Management maintains a neutral allocation outlook for global equities, believing that the tail risks of severe market corrections have significantly decreased, reflecting that stock market fundamentals still have certain support, and investment opportunities are shifting towards more selective allocation strategies. BNP Paribas Wealth Management pointed out that due to external demand and geopolitical uncertainties in the Asian region, it generally maintains an underweight recommendation. However, the internal structure of the Asian market shows a clear differentiation. Among them, China and Hong Kong stock markets have lower correlation with global markets, possessing allocation value for diversifying investment risks. BNP Paribas Wealth Management noted that the current price-to-earnings ratio of China's stock market is about 11.8 times, which is still attractive compared to the US market's valuation level of about 21 times. Especially driven by emerging industries supported by policies such as AI and biotech medical, its long-term growth potential continues to be watched by the mark

Foreign Bank: Maintain Neutral Global Equity Allocation, Adopt Diversified Strategy for AI Layout

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