Singapore investors flock to US market as they eye higher investment returns
SINGAPORE, 8 JULY 2024 — Investors in Singapore are increasingly allocating more to the US market, according to data from Moomoo Financial Singapore Pte. Ltd. (Moomoo Singapore).
This was revealed by Mr Gavin Chia, CEO of Moomoo Singapore, in his keynote presentation at MooFest 2024 — Moomoo Singapore's largest community event of the year.
“Investors are increasingly allocating more funds into key overseas markets, even as they retain Singapore stocks as a staple in their portfolio,” Chia said.
On average, Moomoo Singapore’s profitable clients in the first six months of 2024 allocated 75% of their equity portfolio to the US market, while Singapore stocks formed approximately 20% of their portfolio.
Winning Portfolio
On a whole-of-portfolio basis, equities remain the most popular instrument for investors, forming 50% of a typical winning portfolio. Wealth management products also saw significant allocation.
“Investors are looking to generate higher returns by layering on exposure to key growth markets and sectors, such as US tech names, which saw exponential growth in the first half of the year. At the same time, they are also taking advantage of the higher-for-longer interest rate environment by putting their money in money market funds, given their relative safety and attractive returns,” Chia said.
For investors seeking more portfolio diversificaton, Chia announced that Moomoo Singapore will soon offer cryptocurrency trading on its platform, just months after receiving the Major Payment Institution (MPI) License from the Monetary Authority of Singapore.
"Cryptocurrency has become an increasingly popular asset class among investors globally, and we are thrilled to be able to meet the demands of our clients in every step of their investment journey," Chia said.
Thinking Forward, Mastering the Future
Held on 6 July 2024, the event was attended by nearly 3,000 investors — a threefold increase from MooFest 2023.
Among the exciting slew of activities was a series of panel discussions helmed by thought leaders from the financial sector, including a special panel comprising four global stock exchanges, including representatives from Singapore, Hong Kong, Japan, and the US.
“This is the first time a financial institution in Singapore has brought together such a star-studded gathering of the brightest minds from key exchanges around the world, highlighting our commitment to play a key role in the local financial ecosystem and be the bridge between investors and the global investment community,” Chia said.
Hiroki Kawai, Senior Executive Officer (Equities, ETF Market Development, Financial Literacy Support and Equities Business Development), Japan Exchange Group, shared a compelling narrative of Japan’s stock market resurgence.
"Now is an opportune moment for retail investors to engage with the Japan stock market. Our corporate transformation initiatives and increased shareholder returns are catalysts for growth,” Kawai said.
He highlighted the strategic restructuring of market segments and the government's push for asset-based income growth as pivotal elements driving this momentum. "Foreign investment is a vote of confidence in our economic policies," he added, emphasising the global appeal of the Japanese market.
Adeline Ee, Managing Director & Head of Sales and Marketing, ASEAN, Hong Kong Exchanges and Clearing Limited (HKEX), shared some of the latest initiatives at Hong Kong Stock Exchange. "Our markets showcase how innovations are driving huge opportunities. With the launch of many innovative products such as Asia's first spot virtual asset ETFs, we offer investors more choices. Our structured products market is the world's largest by turnover for 17 consecutive years, and we have recently added US stock underlying, offering investors a broader selection of global opportunities.”
On the home front in Singapore, real estate investment trusts (REITs) and exchange-traded funds (ETFs) have been the go-to investment options for investors here in today’s investment climate.
"Interest rates have somewhat peaked, and there’s a revived interest in REITs. For example, the latest Fraser Centerpoint Trust placement was 2.5 times oversubscribed, signalling strong investor confidence. This surge in demand indicates a renewed confidence in the stability and income-generating potential of REITs,” said Lily Chia, Head of Regional Equities & FICC Sales, SGX Group.
She also highlighted the growing trend towards passive investing. "The move towards passive investing is unmistakable," Chia explained. "In a world of geopolitical and economic uncertainty, ETFs offer a sanctuary of stability and growth. Our strong suite of ETFs, which includes equity, fixed income, and commodities like gold, has performed exceptionally well, often outperforming traditional asset management strategies."
Tech and Innovation as Key Drivers
As a next-generation digitalised brokerage, Moomoo Singapore is a firm believer in the role of technology and education to empower our clients to meet their financial aspirations.
“Our clients are not just participants; they are pioneers. By democratising access to sophisticated tools and insights, we ensure our investors are well-informed decision-makers,” Echo Zhao, Country Head, Moomoo Singapore, said as part of the panel discussions.
She highlighted moomoo’s commitment to leveraging technology for investor education. "We collaborate with partners like Nasdaq to provide top-tier data and insights," Zhao added. "Our platform offers a wealth of educational resources, from webinars to live seminars, ensuring our clients can make informed investment decisions."
James McKeone, Vice President (Head of Investment Intelligence, APAC), Nasdaq, highlighted the critical role of innovation in driving U.S market performance. "US companies like Apple, Nvidia, Microsoft, and Amazon lead the world in innovation," McKeone explained.
"This innovation translates into significant growth opportunities for investors. Since 2019, retail trading on US stocks has doubled, showcasing the global appeal and confidence in the US market."
James also emphasised the importance of data and education in navigating the complexities of the U.S. market. "Working with Moomoo, we ensure that investors have access to the best market data," McKeone said. "Our educational initiatives, including videos and content in local languages, help investors understand and leverage this data for informed decision-making.
He stressed that understanding the market depth is crucial. "In your moomoo app, for U.S stocks, you have 60 levels of pricing and quote information," McKeone explained. "This market depth data allows investors to see under the surface, providing insights into support levels and market sentiment."
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About Moomoo Singapore
Moomoo Financial Singapore Pte. Ltd. (Moomoo Singapore) is an award-winning advanced financial technology company transforming the investing experience through our digitalised brokerage and wealth management platform – moomoo. Moomoo enhances the user experience with market data, news, and powerful analytical tools. Moomoo also embeds a unique digitalised investment community to connect all users, investors, companies, analysts, media and key opinion leaders.
In Singapore, Moomoo Financial Singapore Pte. Ltd. (www.moomoo.com/sg) offers investment products for trading via the moomoo platform, and it is a capital markets services license holder regulated by the Monetary Authority of Singapore (Licence No. CMS101000), Major Payment Institution (Licence No. PS20200617) holder with the Exempt Financial Adviser Status. In April 2024, Moomoo Singapore reached the 1 million users milestone in Singapore.
