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Hong Kong investors bet on cash

Hong Kongers surveyed by Finder believe cash will perform best this year.
close-up of person counting stack of paper cash in wallet

Amid heightened global uncertainty, 21.5% of Hong Kong respondents to Finder’s recent retail investor sentiment report think cash will be the best performing investment in 2022.

It is followed by equites and ETFs (21.3%), and cryptocurrencies (14.9%).

“There’s a lot of uncertainty in the market at the moment and each investment comes with its own set of risks and potential rewards,” said Kylie Purcell, Finder’s investment editor.

“Cash is seen as a safe investment, but people need to consider the inflation-adjusted return.”

Other popular investments are non-fungible tokens – NFTs – (14%), property (14%), bonds (7%), and commodities (7%).

While cash is the most popular investment option for people in Hong Kong, the sexes are split on how they’ll be investing in 2022.

The survey found 24.2% of Hong Kong men think stocks or ETFs are the top options, while 22.7% of women in Hong Kong prefer investing in cash.

When segregated by age groups, people aged between 25 and 34 believe cash would outperform other asset classes, while other age groups think stocks or ETFs would generate better returns.

Perhaps surprisingly, the study also found that retirees have high expectations on digital assets, with 24% of those 65 or above think cryptocurrency, and 22% think NFTs will be the best performing investment.

On the other hand, only 7% of those aged 65 or above believe stocks will have a better performance.

Global sentiment

Investors worldwide have similar views, with 24.5% of those surveyed around the globe saying cash is the safest investment option this year. It is especially the case in the US, with 33.7% of the respondents preferring cash.

The second most popular asset class around the world is property, with roughly 22.6%.

Those most likely to be investing in property are in France, where 43.5% of those surveyed believe property is a decent bet for 2022.

However, “$100 today may only be worth $80 down the track so consumers should be thinking about how they can inflation-proof their portfolios, but maintain liquidity should they need the cash,” added Purcell.

“It’s always a good idea for retail investors to have a diversified portfolio and avoid putting all their eggs in one basket.”

Part of the Mark Allen Group.