In spite of the economic downturn and resulting market uncertainty under the COVID-19 pandemic, most Hong Kong retail investors are keen to invest, a recent survey revealed.
In the next 12 months, about 71 percent of retail investors plan to invest in Hong Kong stocks, and 53 percent will be eyeing retail funds, according to a survey commissioned by the Hong Kong Investment Funds Association (HKIFA).
More capital has flowed into healthcare-related funds in recent months, as the global health crisis made investors pay more attention to the sector, and some stocks in the sector did perform well
Elisa Ng Ka-li,
vice-chairman of the HKIFA’s Unit Trust Sub-Committee
A small fraction of respondents said they have plans to invest in the next three months, with 36 percent saying they will dip into stocks in that time and only 13 percent will explore mutual funds. More investors prefer to wait for the nine months after that.
The HKIFA quizzed 710 Hong Kong investors who a have monthly income of over HK$30,000 ($3,870) or liquid assets of over HK$500,000. The survey was conducted online from May 14 to 18.
The respondents’ most favored sectors are healthcare and biotech, technology, and utility. These sectors are preferred far more than financial sector, which traditionally has been a core sector in retail investors’ portfolios.
More capital has flowed into healthcare-related funds in recent months, as the global health crisis made investors pay more attention to the sector, and some stocks in the sector did perform well, said Elisa Ng Ka-li, vice-chairman of the HKIFA’s Unit Trust Sub-Committee.
The high inclination to invest comes despite the fact that a high percentage of respondents have a negative economic outlook. For the next 12 months, about 74 percent of the respondents have no confidence in Hong Kong’s economy, and 75 percent investors remain pessimistic about the global economy. Overall, respondents expect the economy of the Chinese mainland will recover from the pandemic faster than other markets will.
The city’s fund market reported net inflows in April, after recording net redemptions in March, HKIFA data shows.
Nelson Chow Kin-hung, chairman of the HKIFA’s Unit Trust Sub-Committee, said he saw capital flowing into global bond funds and multi-asset funds in April and May. He believes the market has recovered to stable status, and investors tend to put money into global market to spread risks.
