Where investors in other surveyed markets are more cautious, Hong Kongers continue to be keen investors as they seek to profit from market volatility.
As much as 87% of respondents identified themselves as “proactive”, compared with the global average of 77%, according to Calastone’s survey, “Global Investor Behaviours and Attitudes: A cross generational overview”, released this week.
Already 73% of them invest in stocks, far exceeding the global average of 31%, the US (23%) and the UK (22%), and they are also far more trusting of the financial services industry. Only 29% have misgivings about the sector, compared with a global average of 61% who wary of it.
Indeed, 71% said Covid-19 has made them more worried about their financial futures, another factor inducing them to invest.
Calastone’s 2020 investigation into investment behaviours analyses the responses of 1,800 people, drawn in equal proportion from Australia, Germany, Hong Kong, New Zealand, the United Kingdom and the United States.
Hong Kongers are also willing adopters of technology and seem to be more so than their global peers.
“Proactive investors show an appetite for greater transparency and reduced costs to enhance the investing experience – both of which are provided by technology,” noted the Calastone report of the survey findings.
Greater visibility on what was happening with their money was the main reason to use technology, and 84% said the ability to manage funds via a digital platform was an important factor when investing. Significantly, only 40% were satisfied with current cost levels.
Other indications of Hong Kongers’ embrace of technology included that 41% would be open to using an app to manage their investments, 56% would buy investment products from a technology company (only 44% of global respondents would be comfortable to do so), and 84% said they would be more likely to invest if they could do so in smaller amounts, demonstrating a growing demand for micro-investing platforms.
The more widespread embrace of financial markets and services by Hong Kongers is perhaps a corollary of their greater propensity to put money aside for a rainy day or to prepare for the future.
A whopping 92% claim they have savings, well above the global average of 77%; 62% are saving for retirement (global average of 44%), exceeding the 51% who selected the most popular response, which was saving for holiday and travel (global average of 45%).
“There is an opportunity for local fund managers to capitalise on these trends and digitalise their operations to meet shifting investor demands,” said the report.
The reports recommends that investment managers should modernise and digitalise their business models, to offer local investors greater visibility over their investments, reduce costs, and address the rising demand for micro-investing.
“Through innovation, managers can make the investment process more convenient, accessible and flexible for local investors,” said Calastone
“Now is the time to capitalise on Hong Kongers’ increasing investment appetite as they seek to benefit from the market volatility accompanying geopolitical tensions and Covid-19.”
