HSBC survey finds firms recalibrating amid global volatility

Senior business leaders and institutional investors are sharpening their focus on Asia—mainland China in particular—as they reposition for growth amid global economic volatility, according to an independent HSBC survey released ahead of the bank's annual Global Investment Summit.

The survey, conducted in mid-March, canvassed 3,000 international businesses and institutional investors across 10 markets. It found that, following a decade of cumulative global shocks, companies are actively adapting and investing to capture new opportunities.

Ninety-four per cent of respondents continue to see robust opportunities for international growth, with 87 per cent now more willing to take calculated risks than five years ago. Almost three-quarters—72 per cent—expect moderate to significant repositioning of their businesses over the next three years as they reassess operations and investment strategies.

Artificial intelligence (AI) and technology have become key drivers shaping international expansion and capital deployment strategies.

Technology is now central to global investment decisions. Access to AI, critical technologies and infrastructure was cited by 50 per cent of respondents as the most important factor shaping their international strategies over the next three years—on par with market growth and client demand (49 per cent).

Strong AI and data infrastructure, coupled with competitive energy costs, was named by 51 per cent of respondents as a primary driver for increasing market exposure, just behind growth prospects and customer demand (52 per cent).

Respondents expect the most significant benefits of AI over the next three years to be improved productivity and workforce efficiency (56 per cent). Forecasting and modelling (48 per cent), as well as increased innovation, idea generation and operational cost savings (46 per cent), were also identified as important.

Meanwhile, 32 per cent expect AI to play a strategic role within three years by fundamentally reshaping their core business models. This signals a shift not only in how work is done, but also in what products and services are offered, how they are delivered, and how value is created.

Nearly half (49 per cent) of institutional investors said increasing exposure to AI and technology themes is their chief strategy for positioning client portfolios for 2026. Only 14 per cent expect to make no material changes to their overall approach.

Volatility is now viewed as a defining feature of the global economy by 95 per cent of respondents, rather than a temporary disruption.

In response, 88 per cent have recalibrated their capital allocation strategies to address increased volatility.

Organisations are also extending investment timeframes to navigate complexity. More than half (53 per cent) said their investment horizons had lengthened compared to three years ago, signalling a shift towards longer-term positioning amid persistent uncertainty.

This trend is evident across major markets: the UK (69 per cent), the US (68 per cent), and mainland China (78 per cent) all reported holding greater liquidity than three years ago.

Respondents in Saudi Arabia and the UAE remain committed to medium-term strategies despite regional tensions, pointing to strong opportunities for both short- and long-term growth. In the UAE (95 per cent) and Saudi Arabia (98 per cent), businesses and investors are increasingly reconfiguring supply chains, with 94 per cent expecting cross-border trade and investment to become more regional.

The survey indicates that globalisation is becoming more regional, with 93 per cent of organisations planning to increase cross-border trade or investment over the next five years and 91 per cent expecting these flows to concentrate within regional networks.

Mainland China was identified by 41 per cent of decision-makers as the market set to grow most in importance to their economic relationships over the next five years—more than any other region. This underscores Asia's rising profile amid the broader reshaping of global trade.

Nevertheless, established markets remain critical. Continental Europe and the UK were each named by 38 per cent of respondents as central to future economic relationships, underlining that while Asia's prominence grows, traditional economic centres remain fundamental to global growth.

Despite market uncertainty, businesses and investors are pursuing growth opportunities. Eighty-nine per cent are actively increasing capital deployment in high-growth markets, demonstrating strong conviction in long-term returns despite volatility.

Michael Roberts, CEO of HSBC Bank plc and CEO of Corporate and Institutional Banking, said: "Our Global Investment Summit survey highlights a structural transformation in the global economy. Trade and investment flows are becoming more regional, Asia is gaining strategic importance, and technology is reshaping how and where capital is deployed.

"Business leaders and institutional investors are recalibrating where they operate, invest, and allocate capital as complexity increases."