As cracks emerge in the US-centered investment landscape -- driven by geopolitical uncertainty and waning global confidence -- Mirae Asset Securities Vice Chairman Heo Sun-ho called for a strategic rebalancing toward China and India.
Speaking at a global asset allocation forum hosted by Mirae Asset in Seoul on Thursday, Heo said the global financial market has relied heavily on the US as its primary growth engine over the past three years.
However, with the return of President Donald Trump and the onset of a high-tariff era, he warned that the global trade order is being reshaped.
“The recent depreciation of the US dollar reflects weakening global confidence, spurred by growing nationalism and ballooning fiscal deficits,” Heo said, urging investors to pivot from a US-centric strategy and realign their portfolios with the shifting global innovation landscape.
China and India, he said, represent promising alternatives.
“Innovative technology that once fueled US growth is no longer its exclusive domain,” he added, pointing to China's accelerating technological self-reliance, supported by pro-market policy shifts.
He cited examples such as Chinese AI startup DeepSeek positioning itself as a challenger to OpenAI, and BYD, which in April overtook Tesla in the European electric vehicle market for the first time.
Meanwhile, India is emerging as a vast consumer market, Heo said, powered by robust digital infrastructure and a rapidly expanding population.
His remarks come amid a noticeable cooling of Korean retail interest in US equities following a period of record buying. As of May 26, Korean individual investors had sold a net $1.065 billion (1.46 trillion won) in US stocks -- their first net sell-off in seven months.
Even longtime favorites like Tesla and Nvidia saw combined net sales of about $306 million during the week of May 19-23.
Echoing the call for a diversified investment strategy, Lee Phil-sang, director and head of Asia Pacific Research at Mirae Asset Hong Kong, highlighted China’s healthcare tech sector as a compelling opportunity.
He cited the country’s deep talent pool as a key factor driving its progress toward catching up with the more established US biopharmaceutical industry.
“China has made significant strides in new drug development over the past four years. In 2010, its output in this field was minimal, but it now ranks second globally,” Lee said.
Chinese biotech firms such as Beigene, Akeso, Hansoh, and Eccogene have been expanding globally through out-licensing deals and international clinical trials.
Lee said that China is also taking the lead in advanced drug modalities, including antibody-drug conjugates, targeted cancer therapies linking antibodies to toxic agents, and bispecific antibodies, designed to bind two different antigens for enhanced efficacy.
Policy shifts in China are also creating a more favorable environment for foreign investors, Lee said.
Whereas past periods of double-digit economic growth often led to excessive government investment and harmful oversupply, a slowing Chinese economy is now helping to differentiate true market leaders.
“China’s slow growth isn’t necessarily negative,” Lee said. “It’s in low-growth conditions that world-class enterprises emerge. When a leading company dominates the domestic market and expands overseas, it sets the stage for the rise of truly global champions.”
By Park Han-na (hnpark@heraldcorp.com)
