Looking for attractive Asian stocks outside of AI? HSBC names 10 ‘forgotten gems’ for investors

Since the release of ChatGPT in late 2022, AI has been a dominant theme in global markets. Investors have piled into AI stocks, sending companies such as Nvidia , Intel , Samsung , TSMC and SK Hynix to dizzying levels. However, that has also led to concentration risk, particularly in Asia, with HSBC saying more than half of index returns on the FTSE Asia ex-Japan index were driven by TSMC, SK Hynix and Samsung Electronics. "There are risks to such a concentrated rally. Everybody owns the same stocks," the bank said in a note on Tuesday, adding this focus on AI was causing some "market dislocations and, in some cases, is pulling attention away from other growth themes." Shedding light on names beyond AI, HSBC has identified 10 "forgotten gems" in Asia, picking out companies that have generated high return on equity, gained market share while remaining highly profitable and paying out strong dividends. Here is HSBC's full list: Among the companies are the Hong Kong Exchange , South Korean food manufacturer Samyang Foods, and Indonesian telecommunications provider PT Telkom. HSBC also chose Fuyao Glass Industry , the world's largest automotive glass manufacturer, highlighting its scale. "In our view, the market is undervaluing Fuyao's growth runway and margin resilience, as well as the broader shift in global competitive dynamics that are playing out in its favour," HSBC's analysts wrote. …