Milken Institute Symposium Reveals Global Investors Are Pivoting Toward China Markets Amid Ongoing Middle East Conflict

Milken Institute symposium experts discuss why global "smart money" is pivoting to China and ASEAN markets to diversify away from U.S. and Middle East risks.

By: AXL Media

Published: Mar 24, 2026, 5:47 AM EDT

Source: Information for this report was sourced from Milken Institute

Navigating the Shift Toward a Multipolar Economy

The acceleration of a multipolar world is forcing global investors to fundamentally rethink concentrated market exposure, particularly as the military conflict in the Middle East shows no signs of imminent de-escalation. Speaking at the 2026 Global Investors’ Symposium in Hong Kong, hosted by the Milken Institute, finance leaders highlighted a growing trend of diversification aimed at mitigating long-term geopolitical risks. As the international rules-based order continues to face challenges, institutional investors are moving beyond daily headlines to consider how medium-term impacts on energy prices and global fragmentation will reshape the investment landscape for the coming decade.

Seeking Stability Outside of United States Markets

A significant driver of current capital reallocation is the perception that the United States has become an erratic, if not unreliable, partner for long-term holders. Aaron Costello, the head of Asia at Cambridge Associates, observed that non-U.S. markets are positioned to benefit as nations prioritize self-reliance in response to American volatility. This shift is fueling a return of investor interest in China, with Costello noting a visible thaw in sentiment from European investors and a gradual warming from American counterparts. The prevailing view among symposium panelists is that the geopolitical risk premium associated with Chinese assets is shrinking, especially as indications suggest Washington is interested in striking a new deal with Beijing.

Technological Supremacy in AI and Biotechnology

Within the Chinese market, institutional interest is currently concentrated on two high-growth themes: artificial intelligence and biotechnology. Hoi Tung, CEO and chairman of Ping An Overseas Holdings, pointed to the "DeepSeek moment" as clear evidence that Chinese AI capabilities can now compete directly with those of the United States. Furthermore, China maintains a structural edge in biotech, specifically within drug discovery and preclinical trials. These sectors benefit from significant government support, a deep pool of human resources, and an embedded competitive advantage that makes them highly attractive to investors looking for structural growth that can withstand global economic shifts.