Photo shows a view by the Victoria Harbour in Hong Kong, June 11, 2020. (LI GANG / XINHUA)
The participation of investors and the number of firms engaged in selling investment products increased last year despite the continuing pandemic and difficult market environment, according to a joint survey by the Securities and Futures Commission and the Hong Kong Monetary Authority.
The number of investors who bought investment products rose 5 percent year-on-year to 770,000 last year, according to a joint survey by the SFC and the HKMA. Meanwhile, the number of firms engaged in the sale of investment products also increased by 5 percent to 390 in 2021 from 372 in 2020
The number of investors who bought investment products rose 5 percent year-on-year to 770,000 last year, according to the survey, which was released on Tuesday. Meanwhile, the number of firms engaged in the sale of investment products also increased by 5 percent to 390 in 2021 from 372 in 2020.
“The survey reveals increased retail participation in the investment market, notwithstanding the difficult market environment, and an increasing trend for firms to use online platforms for distribution,” SFC Deputy CEO Julia Leung Fung-yee said.
“It yields useful information on market trends and distribution channels for the industry participants and regulators alike to better serve the interests of retail investors,” she added.
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The total transaction amount of investment products sold by the respondent firms last year was HK$5.02 trillion ($639.5 billion), down 12 percent from 2020. The decrease in the total transaction amount was primarily attributable to the drop in sales of structured products and debt securities, the survey showed.
Pedestrians cross a road in Hong Kong's Central area on Nov 13, 2021. (BERTHA WANG / AFP)
Firms generally commented that the drop was due to unfavorable market sentiment and volatile markets in 2021 caused by the continuous impact of the COVID-19 pandemic, heightened geopolitical risks, and the expectations of interest rate hikes.
Sales of equity-linked products increased 5 percent year-on-year to HK$1.67 trillion last year because of the buoyant performance of the underlying internet and technology stocks during the first half of 2021
Despite the decrease in the overall transaction amount for structured products, sales of equity-linked products increased 5 percent year-on-year to HK$1.67 trillion last year because of the buoyant performance of the underlying internet and technology stocks during the first half of 2021.
The transaction amount of collective investment schemes rose by 5 percent year-on-year to HK$1.49 trillion last year, while sales for debt securities decreased by 23 percent to HK$818 billion, weighed down by uncertainties in the interest rates outlook.
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More firms sold investment products through online platforms. Seventy firms used online platforms to distribute investment products, up 21 percent from the previous survey.
“This joint product survey strengthens the supervisory collaboration between the SFC and the HKMA, and enhances surveillance of the market by the regulators,” said Arthur Yuen Kwok-hang, HKMA deputy chief executive. “The survey also provides useful input to our policy formulation and supervisory work in protecting investors.”
evanliu@chinadailyhk.com