Ranks of younger, lower-income investors growing, survey shows
Hong Kong's investor base is gaining more new faces who are relatively younger and have lower incomes, while overall appetite for risk has risen with stocks being the most favoured investment, according to an HSBC survey.
The proportion of investors aged 18 to 29 had grown to 17 per cent from 12 per cent last year, HSBC said in its sixth annual investment market monitor survey, which polled 1,305 investors aged 18 to 64 years old.
Those with monthly incomes less than HK$10,000 accounted for 31 per cent, up from 22 per cent, the report said.
'The influx of new investors, particularly from the mass market in Hong Kong, is not surprising under the current bullish market,' said Burno Lee, HSBC's head of wealth management.
'More young and less experienced investors in the market would not have a significant effect on the Hong Kong stock market as these investors usually only put a small amount of money into stocks,' said Mr Lee.
'When the market turns into long-term correction ... the young investors may become irrational.'
The survey shows that stocks remain the favourite investment instrument of Hong Kong investors. Eighty-seven per cent of the respondents have invested in stocks this year, up from 77 per cent last year.
The proportion of 'stock only' investors has also risen from 24 per cent to 33 per cent.
For this year, the average investment amount by each individual investor is HK$310,000, up 15 per cent from HK$270,000 a year ago.
Sixty-four per cent of investors polled have invested in initial public share offerings, compared with 42 per cent last year and 36 per cent in 2005. Eleven per cent of such investors sold their shares on the first day of the shares trading on the market and 23 per cent sold one to two weeks after listing.
