A more confident Hong Kong

57% are confident about their personal financial situation and 59% are upbeat about how their finances will look three years from now

Evolving investor attitudes

People are generally positive about the future and encouragingly many are willing to take risk if it means a greater reward.

Investor sentiment in Hong Kong has improved significantly since the global financial crisis and the local retail mini-bond controversy. But volatile international as well as local markets remain core factors affecting risk appetite. Despite the uncertainties however, we found that on the whole, Hong Kong people are positive about their future and prospects. And encouragingly, while individuals prefer to hold a large proportion of their savings in risk free instruments like cash and the money markets, they are more willing than many regions, to take risk, if it means a greater reward.

A more confident Hong Kong?

Presently, 57% of respondents are confident about their personal financial situation and 59% are confident about how their finances will be three years from now. However, while only 3% of people are uncertain about their current situation, this jumps to 7% when asked about the next three years, an increase that could reflect worries about current property valuations. This uncertainty is also reflected in respondents’ future investment plans. While 31% of respondents said they were very or extremely likely to take out a new investment over the next 12 months, over half had also not ruled out the possibility of reducing the amount of money they have invested over the same period.

 

 

34% of younger investors and 36% of those with children said they are very or extremely likely to take out new investments in the next year

Hong Kong’s investment approach is heavily influenced by short-term, speculative attitudes that find their roots in the Mark Six Lottery, horse racing, property and stock trading, or even in temporary trends like trading in action figures. Therefore, long-term investment thinking seems to suffer in Hong Kong.

Short term: 86% of Hong Kong respondents define short term as six months or less

Medium term: 62% of respondents define medium term as one year or less

Long term: 63% of respondents define long term as five years or less