Hong Kong investors are becoming more aggressive as their requirements for investment returns have risen. They now expect an 11.4% average annual return, up from 10.3% a year ago, according to the Schroders 2021 survey.
With return expectations higher than ever before, Hong Kong investors have become more attentive to new investment opportunities that are reshaping the world.
Over the past year, the top three sectors where investors have put their money were stocks and funds invested in internet and tech companies (60%), electric vehicle and related industries (47%), and biotech and associated pharmaceuticals (45%).
By geography, most Hong Kong investors (86%) prefer Asia, followed by Europe (67%) and North America (58%), according to the study.
“While it could well be due to home-bias that Hong Kong investors are keen on Asia as an investment destination, we continue to be convinced of the prospects of the region. Asia has leveraged on disruptions brought by the pandemic to accelerate the development of digital innovations critical to the post-pandemic era,” said Amy Cho, chief executive officer of Hong Kong and head of Distribution of Asia Pacific of Schroders.
These include remote communications, digital healthcare, mobile payments, e-commerce, and next-generation mobility. Related developments in the world’s two most populous nations – China and India – “capture the dynamic of why we believe Asia will shape the 21st century,” she said.
Schroders surveyed 23,000 people, who will invest at least €10,000 ($11,736) in the next 12 months and have made changes to their investments within the last 10 years, from 32 locations globally, including 500 of them from Hong Kong.
The study also found that the pandemic has had a drastic impact on different types of investors. Most people in Hong Kong (76%) said that they have spent more time thinking about their financial wellbeing and reorganising their personal finances due to Covid-19.
They have placed more emphasis on their savings, with 80% of them having saved as much as they planned to or saved more than they intended.
“The unprecedented pandemic may have been a wakeup call to adjust their financial habits, and better equip themselves for the uncertainties and opportunities that lie ahead,” said Cho.
Hong Kong investors have also modified their retirement plans in the wake of the pandemic, with 72% of non-retired people saying they would like to save more for their retirement.