The Flying Dutchman Asia’s forgotten gems

Research evidence excerpt

The Flying Dutchman Asia’s forgotten gems

19 May 2026

The Flying Dutchman EquityAsia Strategy

Asia’s forgotten gems

◆ The rally in AI stocks has made markets more concentrated, Herald van der Linde*, CFA

drawing attention away from high-quality firms in Asia Head of Equity Strategy, Asia Pacific The Hongkong and Shanghai Banking Corporation Limited

heraldvanderlinde@hsbc.com.hk

◆ Many global and national champions, or high dividend stocks +852 2996 6575

with no meaningful AI exposure, trade at attractive multiples Prerna Garg*

Asia Equity Strategist

The Hongkong and Shanghai Banking Corporation Limited

◆ We highlight 10 forgotten gems in Asia prerna.garg@hsbc.com.hk

+852 9831 6901

AI in focus: Across Asia, AI stocks are still running hot. But the performance is AdamAssociate,Qi* Equity Strategy

concentrated as more than half of index returns come from TSMC, SK Hynix and The Hongkong and Shanghai Banking Corporation Limited

adam.x.l.qi@hsbc.com.hk

Samsung Electronics – ‘Asia’s Tech Trident’. The top 10 AI names now account for +852 2288 9311

c30% of a typical GEM or Asia fund. Growth is rewarded, but profitability or dividends Varun Pai*

much less so. The knock-on effect is that some Asian ‘gems’ are now being forgotten. Associate

Bangalore

Widen the lens: Using Porter’s Five Forces framework, we identify and screen for

firms that have a strong sustainable advantage either in global or domestic markets,

despite little AI exposure. We call them global or national champions. These firms * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

enjoy strong brand, management or profitability that have helped them gradually gain not registered/ qualified pursuant to FINRA regulations

market share. We also assess stocks with a high and sustainable dividend stream