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Hong Kong investors look to change investment strategies

Nine out of ten investors in Hong Kong said they intend to make changes to their investment strategies, according to a study by Schroders.
Hong Kong, Hong Kong Island, Two International Finance Center, Victoria Harbour - Hong Kong

As inflation and interest rates rise, Schroders found that 63% of Hong Kong investors have adjusted their investment strategies, while 26% of those who have yet to act are planning to make changes soon.

In contrast, globally, only 55% of investors have changed their investment strategy in light of rising inflation, data from the Schroders Global Investor Study 2022 found.

It also found that Hong Kong investors are turning away from asset classes that are losing out to higher interest rates.

Compared with six months ago, investors responded in the survey that government bonds, cash and corporate bonds are less attractive.

The survey also found that more experienced investors are more likely to have made changes due to the macro-economic environment, with more than 80% of Hong Kong ‘expert’ investors indicating that they have switched gears, while only 14% of ‘beginner’ investors have done so.

On the other hand, 42% of investors in Hong Kong said they have made new investments in stocks over the past six months, while three in 10 said they have added their exposure to actively managed investment and mutual funds.

Schroders surveyed 500 investors from Hong Kong and more than 23,000 investors around the world who have invested within the last 10 years and will be investing over the next year.

The survey also found market sentiment has become more polarised.

While 68% of Hong Kong investors felt forced to take on more risk than intended to pursue their desired returns, 42% said they are looking to save more and spend less in response to the current market outlook.

Hong Kong investors are also more inclined to seek expert advice, with 34% of them more likely to speak with a financial adviser as interest rates rise and 41% of them finding actively managed funds more attractive.

Part of the Bonhill Group.