However, interest is expected to pick up in the next 12 months, especially for the two stock connect schemes, according to the survey.
Hong Kong investors’ participation in cross-border channels
On the flipside, investors surveyed in Guangdong province, which include those in Guangzhou, Shenzhen and Zhuhai, have been more active users of the cross-border channels, with 44% of them having invested through the Shanghai-Hong Kong Stock Connect.
Guangdong investors’ participation in cross-border channels
In addition, there is strong interest in using these channels, with at least half of investors surveyed indicating interest in using the stock connect and 26% in using the MRF channel in the next 12 months.
The data is consistent with the latest sales figures of the MRF scheme. Since the programme began in 2015, net sales of China-domiciled funds sold in Hong Kong amounted to RMB 470m ($68.41m), which compares with the RMB 9.1bn for MRF funds sold in China, according to data from China’s State Administration of Foreign Exchange (SAFE).
The survey noted that investors in Guangdong are more likely than their counterparts in Hong Kong to place assets overseas.
Source: HKIFA. n = number of investors surveyed.
When looking at overseas investments, Hong Kong investors prefer to go for mainland stocks as well as funds, as well as those that invest in mature markets.
Hong Kong investors’ investment preference
For investors in Guangdong, their most preferred overseas asset types are stock and insurance products in Hong Kong.
Guangdong investors’ investment preferences