HSBC Report: 61% of Taiwanese entrepreneurs invest in real estate, 26% aggressively buy cryptocurrencies

HSBC releases the 2025 Global Entrepreneur Wealth Report, surveying 165 Taiwanese entrepreneurs. 61% allocate funds to their primary residence real estate (above the global average of 53%), and 26% have invested in cryptocurrencies. The participation rate of Taiwanese family businesses reaches 87%, with 75% having multi-generational inheritance. However, only 63% have established independent governance structures (compared to the global average of 80%), and 58% are concerned about the next generation’s lack of professional succession skills.

Real estate remains the top asset allocation choice

According to this survey, 61% of Taiwanese entrepreneurs allocate funds to their primary residence real estate, higher than the global average of 53%. This preference reflects Taiwanese entrepreneurs’ trust in tangible assets and their emphasis on asset preservation. Real estate, as a traditional hedge asset, has always held a special position in Taiwanese culture, with the concept of “Having land is having wealth” deeply ingrained.

Taiwanese entrepreneurs’ real estate investments are not limited to personal housing needs but also serve as important tools for wealth preservation and family inheritance. Compared to the volatility of stocks and bonds, real estate offers a more stable store of value. Additionally, Taiwan’s real estate market has continuously appreciated over the past decades, reinforcing entrepreneurs’ confidence in these assets.

Next is luxury goods, such as high-end fashion and jewelry (47%) and automobiles (46%). These expenditures reflect entrepreneurs’ pursuit of quality of life and social status symbols after accumulating wealth. Notably, nearly 40% (37%) of respondents indicate they would allocate part of their wealth to charitable donations, demonstrating that Taiwanese entrepreneurs, while seeking wealth growth, also pay attention to social responsibility and giving back.

Looking ahead, 14% of respondents plan to reduce their cash holdings, and 20% will continue investing in the growth of their personal businesses. This reallocation of funds indicates entrepreneurs are shifting from defensive asset allocation to more active growth-oriented investment strategies. Reducing cash holdings suggests they believe current market conditions offer better investment opportunities, while continued investment in their own businesses reflects confidence in their long-term prospects.

Cryptocurrencies become the new favorite in asset allocation

In terms of portfolio, entrepreneurs show strong interest in cryptocurrencies, with 26% of respondents already including cryptocurrencies in their personal asset portfolios, demonstrating high sensitivity to the digital economy. This proportion is significantly higher than that of the general high-net-worth population, indicating that entrepreneurs, as innovators and risk-takers, are more willing to embrace emerging asset classes.

The motivations for Taiwanese entrepreneurs to allocate to cryptocurrencies are diverse. First, for diversification—seeking low-correlation assets outside traditional stocks, bonds, and real estate to reduce portfolio volatility. Second, as a hedge against fiat currency devaluation, especially amid ongoing quantitative easing by major global central banks, cryptocurrencies are viewed as tools against inflation. Third, as a forward-looking move towards the digital economy, many entrepreneurs believe blockchain and digital assets will be key components of future economies.

Three characteristics of cryptocurrency allocation

Cautious allocation ratio: Although the 26% adoption rate is notable, most entrepreneurs allocate only 1% to 5% of their portfolios to cryptocurrencies, indicating they see cryptocurrencies as high-risk, high-reward satellite assets rather than core holdings.

Mainly Bitcoin and Ethereum: The survey shows Taiwanese entrepreneurs primarily allocate to mainstream cryptocurrencies like Bitcoin and Ethereum, with less involvement in high-risk altcoins or memecoins. This choice reflects their risk management awareness.

Via compliant channels: Most entrepreneurs conduct their cryptocurrency allocations through regulated exchanges in Hong Kong or Singapore and private banks, rather than decentralized exchanges. This preference underscores their focus on compliance and fund security.

It is also noteworthy that Taiwanese entrepreneurs’ private equity holdings account for only 18%, below the global average of 48%. This gap may stem from the relatively undeveloped private equity market in Taiwan and entrepreneurs’ tendency to invest more in their own businesses rather than external private funds. As Taiwan’s private equity market gradually opens and matures, this ratio may increase in the future.

Wealth governance and succession challenges coexist

Although Taiwanese family businesses have a strong willingness to pass on, they still face challenges in governance structures and succession preparation. Only 63% of entrepreneurs have established independent and clear governance frameworks, significantly below the global average of 80%. This governance gap could lead to decision-making chaos, equity disputes, and divergent business directions during family succession.

More concerning is that 58% of business owners worry that the next generation lacks sufficient professional skills for succession. This “capability anxiety” reflects the gap in business philosophy, management style, and market understanding between generations. Many second-generation successors have received education abroad and may encounter conflicts with the family business culture upon returning to Taiwan, requiring time and professional guidance to bridge.

Nishi Bo, acting head of HSBC Taiwan’s Private Banking, states that Taiwanese entrepreneurs, facing asset inheritance and sustainable management issues, care not only about wealth transfer but also about the continuation of business achievements. They need to leverage professional expertise and start dialogue early, optimize asset allocation within a global context, and establish customized succession blueprints through broad options.