HSBC’s 10 ‘Forgotten Gems’ in Asian Markets

CNBC reported Tuesday that HSBC has published a research note flagging ten overlooked Asian equities it calls “forgotten gems,” arguing that the AI-driven rally has created dangerous market concentration across the region.

AI Dominance Creating Blind Spots for Investors

HSBC analysts noted that more than half of all index returns on the FTSE Asia ex-Japan benchmark were generated by just three names: TSMC, SK Hynix, and Samsung Electronics. The bank warned that when everyone holds the same stocks, concentration risk builds sharply. That narrowness is creating pricing dislocations elsewhere, the analysts said, and pulling capital away from compelling growth stories that have nothing to do with semiconductors or large language models.

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What HSBC Is Looking For

The ten “forgotten gems” were screened for a specific combination of qualities. Each company had to demonstrate high return on equity, sustained market share gains, strong profit margins, and a consistent dividend track record. The final list spans multiple countries and sectors, including Hong Kong Exchange, South Korean food producer Samyang Foods, and Indonesian telecoms operator PT Telkom.

Background: A Rally Built on a Narrow Foundation

Since ChatGPT launched in late 2022, AI enthusiasm has reshaped global equity flows. Asian markets felt the surge acutely, as chip designers and memory manufacturers became proxies for the entire theme. That momentum has been powerful but increasingly lopsided, HSBC argued, with valuations in non-AI sectors lagging despite solid underlying fundamentals.

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Three Names HSBC Highlighted in Detail

Automotive glass maker Fuyao Glass Industry drew particular attention. HSBC said the market is underpricing the company’s growth potential and margin durability, noting its roughly 70% share of the Chinese domestic market and expanding international footprint, including US manufacturing facilities. Contract drugmaker WuXi AppTec was flagged for its pharmaceutical development and manufacturing revenues, which climbed 11% in 2025. The bank expects that momentum to accelerate through 2026, with the company guiding for 18% to 22% revenue growth in continuing operations. Indian property developer Godrej Properties rounded out HSBC’s detailed commentary. The analysts said premium housing demand in India remains resilient despite broader sector pressure, and that Godrej’s national footprint and balance sheet depth position it for further share gains.

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