Mirae Asset Securities: "Asset Allocation Should Shift from US-Centric to Opportunities in China and India"

Mirae Asset Securities emphasized that cracks are appearing in the US-centric investment environment and stressed the need to seek new opportunities in China and India.

At the '2025 Mirae Asset Securities Global Asset Allocation Forum' held at the Four Seasons Hotel on the 29th, Heo Sunho, Vice Chairman of Mirae Asset Securities, is delivering a greeting.

On the 29th, Mirae Asset Securities held the '2025 Mirae Asset Securities Global Asset Allocation Forum' at the Four Seasons Hotel in Jung-gu, Seoul.

In his welcoming remarks, Heo Sunho, Vice Chairman of Mirae Asset Securities, stated, "Over the past three years, the global financial market has heavily relied on the single engine of the United States. This is because the US market has provided exceptional stability and growth. However, at the end of last year, with the return of President Donald Trump, a new era of high tariffs began, which is reshaping the global trade order and causing cracks to appear in the US-centric investment environment."

Vice Chairman Heo continued, "The innovative technologies that have driven US growth are no longer exclusive to the United States. Growth potential is not confined to any single country, and investments must transcend geographical boundaries. As an answer to this, we can find new opportunities in China and India." He added, "China is accelerating its drive for technological self-reliance centered on domestic policies that are more friendly to private enterprises and is achieving remarkable technological advancements in areas such as artificial intelligence (AI), robotics, and electric vehicles. India, based on its digital infrastructure and rapidly growing population structure, is emerging as a massive consumer market. Now is the time to move away from a US-centric approach and rebalance portfolios to reflect the shift in the axis of global innovation."

Park Heechan, Head of the Research Center at Mirae Asset Securities, emphasized global diversification in his presentation titled 'Asset Allocation Strategies in an Era of Great Transition: From the US to China and India.'

Park stated, "The recent trend of de-dollarization and dollar weakness shows that excessive US-centric protectionism and large fiscal deficits are undermining global trust. Historically, the direction of the dollar has had a significant impact on investment performance, and now is the time to prepare for the possibility that the dollar's direction may be changing."

He explained that actively diversifying assets concentrated in US big tech companies to markets outside the US is a strategy to respond to these changes. Park commented, "The core alternative for diversification is China, where technological advancement is underway. India, with its strong domestic growth engine, is also promising. In addition, sectors such as defense, nuclear power, and beauty tech appear to be promising sector themes that could partially replace technology."

There is also an opinion that attention should be paid to the emergence of world-class companies in China. Lee Pilsang, Head of Asia-Pacific Research at Mirae Asset Global Investments Hong Kong, said, "We are well aware that China's economy and industrial scale are enormous, but size alone does not make a market attractive for investment. What matters more is how many world-class companies it possesses. Now, world-class companies are finally beginning to emerge in China."

Ten years ago, there were hardly any Chinese companies that could compete in the global market in terms of technology, product quality, or profitability. Recently, however, a large number of companies have emerged that are leading the global market not only in price and scale but also in technology and product quality. Examples include BYD, CATL, and Xiaomi.

Lee emphasized, "The reason we invest globally is to share in the profits generated by world-class companies, regardless of their nationality. China has now become a market to watch as a global investment destination."

There is also the view that India deserves attention for its long-term growth and related investment opportunities. Jung Woochang, a researcher at Mirae Asset Securities, said, "India's representative index, the Nifty 50, has shown rapid recovery from various crises such as the global financial crisis and COVID-19, making structural growth and resilience the greatest strengths of the Indian market. The qualitative growth of the Indian economy is supported by government-led industrial policies and the world's largest pool of young and dynamic talent. India is emerging as the world's largest digital consumer nation and, with the prolonged US-China rivalry, is benefiting as a key player in the reorganization of global supply chains." He added, "India is now being re-evaluated as a future-oriented investment destination that combines both growth and quality."