Asia’s Affluent Investors Drive $200B Surge in Complex Equity Notes Amid AI Rally

Structured product issuance in Asia has eclipsed $200 billion as high-net-worth investors flood into accumulators and fixed-coupon notes. Demand centers on Hong Kong and Singapore equities, with volumes jumping 80% despite prior market setbacks. Banks report surging appetite for instruments that offer controlled tech exposure—particularly to Alibaba and Tencent—while delivering predictable income streams.

The shift marks a stark reversal from recent years. "Issuance was dormant until September 2023," notes JPMorgan's Tony Lee, attributing the revival to China's market recovery. Where investors once favored US underlyings, Hong Kong stocks now dominate as regional sentiment improves.

This renaissance comes with embedded risks. Accumulators obligate buyers to purchase shares at predetermined levels, while fixed-coupon products face payout pressures if benchmarks breach critical thresholds. Yet the trade persists—a testament to Asia's conviction that AI-driven growth outweighs cautionary tales.