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By Ming Zhao
Co-Founder and CEO
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American investors have traditionally concentrated their portfolios on domestic equities, while Asian investors have increasingly recognised the value of participating in U.S. markets. Yet the reverse remains far less common.
Why are so many American investors overlooking Asian-listed companies, particularly when some of the world's most important industries are built around businesses operating in the region?
I believe the answer has less to do with investment appetite and more to do with access. Investors can identify attractive valuations, research international businesses and develop compelling investment theses, but those efforts mean little if their brokerage infrastructure prevents them from trading in the relevant markets.
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I have encountered this problem repeatedly. An investor can spend weeks analysing a company's financial performance, understanding its position in the global technology supply chain and assessing its growth prospects, only to discover that accessing the stock is practically impossible.
The obstacle is not necessarily a lack of conviction. It is the absence of a straightforward route to execution.
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The Importance of Technology Manufacturing
This creates a significant blind spot in American investment portfolios. According to SIFMA, U.S. stock markets represented 43.7 percent of global equity market capitalization in 2025.
More than half of the world's listed equity value therefore exists outside the United States. I believe American investors should pay considerably more attention to that opportunity.
Asia is particularly important because of its position in global technology manufacturing. The region is home to businesses producing semiconductors, memory components, circuit boards, cooling systems and photonics.
These industries are essential to artificial intelligence, advanced computing and modern digital infrastructure. American investors may already have exposure to companies that depend on Asian suppliers, yet often have limited opportunities to invest directly in those businesses.
The contradiction is difficult to ignore: investors can recognise the importance of Asian manufacturers to global technology companies while remaining unable to access the manufacturers themselves.
The Barriers
The barriers are substantial. For some institutional investors, establishing direct access to particular Asian markets can involve lengthy onboarding processes and substantial capital requirements.
In my experience, some arrangements have taken nine months or longer. Capital thresholds can reach hundreds of millions of dollars, excluding many smaller investment managers from direct participation.
I believe this creates an unnecessary imbalance. Smaller funds can have sophisticated research capabilities and a strong understanding of international businesses, yet remain unable to execute their strategies because of infrastructure restrictions. Individual investors face similar limitations.
Valuation provides another reason to reconsider this imbalance. Many Asian-listed businesses trade at lower valuations than comparable American companies.
Not every discount represents an opportunity; geopolitical exposure, corporate governance, liquidity and business fundamentals all matter.
However, I believe limited accessibility and comparatively lower investor attention can also contribute to valuation differences. Investors should have the opportunity to assess these businesses independently rather than being excluded before they can make that decision.
Portfolio Diversification
Broader market access also matters for portfolio diversification. Global industries are interconnected, and developments in semiconductor manufacturing, for example, can affect businesses across several countries.
Investors restricted to domestic markets may lack the flexibility to respond to these changes or diversify their exposure effectively.
I have seen how investor interest can develop when barriers to participation are reduced. The demand for international opportunities is not necessarily missing; in many cases, the infrastructure connecting investors with those opportunities is simply too restrictive.
Brokers and financial infrastructure providers must recognise that cross-border access should become a more accessible part of modern investing.
Simplifying onboarding, improving market connectivity and extending international trading capabilities would allow more investors to participate without facing institutional-level barriers.
My position is straightforward: investors should be able to choose where to allocate capital based on business quality, growth prospects and risk, rather than the limitations of their brokerage arrangements.
The future of investing will increasingly depend on the ability to participate across borders. American investors should not overlook Asia because reaching its markets is unnecessarily difficult.
The opportunities are there. What remains overdue is the infrastructure that makes them accessible.
Ming Zhao is Co-Founder and CEO of Atomic Vaults, a financial infrastructure company expanding access to global equity and derivatives markets. All views expressed are his own.
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