Foreign Bank: Maintain Neutral Global Equity Allocation, Adopt Diversified Strategy for AI Layout
BNP Paribas Wealth Management maintained a neutral global equity stance on May 5, citing geopolitical risks while expressing caution regarding US stocks. AI remains a key long-term trend, supported by an estimated $650 billion in infrastructure capital expenditure from major tech firms, with the bank recommending a diversified investment strategy.
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- 📰 Published: May 5, 2026 at 14:07
- 🔍 Collected: May 5, 2026 at 14:32 (24 min after Published)
- 🤖 AI Analyzed: May 5, 2026 at 14:37 (5 min after Collected)
Central News Agency
(Central News Agency reporter Lu Yen-tzu, Taipei, May 5th) Geopolitical risks continue to affect the global market sentiment, and BNP Paribas Wealth Management today pointed out that it maintains a neutral allocation outlook for global equities. In the Asian market, China and Hong Kong stocks have diversification risk value; for the US stock market, it remains cautious. Artificial Intelligence (AI) remains a core long-term trend, and a diversified allocation strategy is recommended.
BNP Paribas Wealth Management today released its bi-weekly newsletter, stating that although global stock markets have largely recovered from previous declines due to Middle East conflicts, high energy prices continue to put pressure on economic growth prospects, making asset allocation more focused on flexible adjustments and risk diversification.
Regarding equities, BNP Paribas Wealth Management maintains a neutral allocation outlook for global equities, believing that the tail risks of severe market corrections have significantly decreased, reflecting that stock market fundamentals still have certain support, and investment opportunities are shifting towards more selective allocation strategies.
BNP Paribas Wealth Management pointed out that due to external demand and geopolitical uncertainties in the Asian region, it generally maintains an underweight recommendation. However, the internal structure of the Asian market shows a clear differentiation. Among them, China and Hong Kong stock markets have lower correlation with global markets, possessing allocation value for diversifying investment risks.
BNP Paribas Wealth Management noted that the current price-to-earnings ratio of China's stock market is about 11.8 times, which is still attractive compared to the US market's valuation level of about 21 times. Especially driven by emerging industries supported by policies such as AI and biotech medical, its long-term growth potential continues to be watched by the market.
For the US stock market, BNP Paribas Wealth Management maintains a cautious outlook because although the market has rebounded from the previous correction, its performance since the beginning of the year still lags behind global equities. The main reasons are uncertainties in growth prospects brought by AI technology transformation and rising energy prices.
BNP Paribas Wealth Management observed that so far this year, energy and raw material stocks have led the gains, while consumer and healthcare sectors have relatively lagged. In addition, US corporate earnings are projected to grow by about 18.7% in 2026, which is higher than the global average of about 17%, indicating the resilience of corporate fundamentals.
Notably, BNP Paribas Wealth Management mentioned that AI remains a core long-term trend. Large technology companies have announced approximately US$650 billion in AI infrastructure capital expenditures, indicating strong industry commitment. However, in the short term, stock price fluctuations may still occur due to memory supply bottlenecks and the development of new model technologies.
Therefore, BNP Paribas Wealth Management recommends adopting a diversified allocation strategy, prioritizing the layout of technology leaders with robust balance sheets and clear earnings visibility, while also focusing on long-term growth themes such as AI infrastructure, cybersecurity, and industrial power demand.
As for financial stocks, BNP Paribas Wealth Management maintains a negative outlook because signs of stress have appeared in the private credit market, and related asset risks have also increased as geopolitical risks escalate.
BNP Paribas Wealth Management reminds that energy prices are an important market variable. Even if geopolitical tensions ease, it will take time for oil and gas prices to fall back to pre-conflict levels. If energy prices remain high, it may further suppress global economic growth momentum. (Editor: Yang Lan-hsuan) 1150505
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(Central News Agency reporter Lu Yen-tzu, Taipei, May 5th) Geopolitical risks continue to affect the global market sentiment, and BNP Paribas Wealth Management today pointed out that it maintains a neutral allocation outlook for global equities. In the Asian market, China and Hong Kong stocks have diversification risk value; for the US stock market, it remains cautious. Artificial Intelligence (AI) remains a core long-term trend, and a diversified allocation strategy is recommended.
BNP Paribas Wealth Management today released its bi-weekly newsletter, stating that although global stock markets have largely recovered from previous declines due to Middle East conflicts, high energy prices continue to put pressure on economic growth prospects, making asset allocation more focused on flexible adjustments and risk diversification.
Regarding equities, BNP Paribas Wealth Management maintains a neutral allocation outlook for global equities, believing that the tail risks of severe market corrections have significantly decreased, reflecting that stock market fundamentals still have certain support, and investment opportunities are shifting towards more selective allocation strategies.
BNP Paribas Wealth Management pointed out that due to external demand and geopolitical uncertainties in the Asian region, it generally maintains an underweight recommendation. However, the internal structure of the Asian market shows a clear differentiation. Among them, China and Hong Kong stock markets have lower correlation with global markets, possessing allocation value for diversifying investment risks.
BNP Paribas Wealth Management noted that the current price-to-earnings ratio of China's stock market is about 11.8 times, which is still attractive compared to the US market's valuation level of about 21 times. Especially driven by emerging industries supported by policies such as AI and biotech medical, its long-term growth potential continues to be watched by the market.
For the US stock market, BNP Paribas Wealth Management maintains a cautious outlook because although the market has rebounded from the previous correction, its performance since the beginning of the year still lags behind global equities. The main reasons are uncertainties in growth prospects brought by AI technology transformation and rising energy prices.
BNP Paribas Wealth Management observed that so far this year, energy and raw material stocks have led the gains, while consumer and healthcare sectors have relatively lagged. In addition, US corporate earnings are projected to grow by about 18.7% in 2026, which is higher than the global average of about 17%, indicating the resilience of corporate fundamentals.
Notably, BNP Paribas Wealth Management mentioned that AI remains a core long-term trend. Large technology companies have announced approximately US$650 billion in AI infrastructure capital expenditures, indicating strong industry commitment. However, in the short term, stock price fluctuations may still occur due to memory supply bottlenecks and the development of new model technologies.
Therefore, BNP Paribas Wealth Management recommends adopting a diversified allocation strategy, prioritizing the layout of technology leaders with robust balance sheets and clear earnings visibility, while also focusing on long-term growth themes such as AI infrastructure, cybersecurity, and industrial power demand.
As for financial stocks, BNP Paribas Wealth Management maintains a negative outlook because signs of stress have appeared in the private credit market, and related asset risks have also increased as geopolitical risks escalate.
BNP Paribas Wealth Management reminds that energy prices are an important market variable. Even if geopolitical tensions ease, it will take time for oil and gas prices to fall back to pre-conflict levels. If energy prices remain high, it may further suppress global economic growth momentum. (Editor: Yang Lan-hsuan) 1150505
Choose to stand with facts; every sponsorship you give is a power to protect press freedom.
Download the Central News Agency 'First-hand News' APP to stay updated with the latest news.
The text, images, and audio/video on this website may not be reproduced, broadcast, transmitted, or utilized without authorization.