Two-thirds of Hong Kong investors are positive about their financial future and nearly half of them are optimistic about the performance of the stock market over the next year, according to a study by BlackRock.
Hong Kong investors who feel positively about their financial future have grown 3 percentage points to 67 percent compared with the study in the previous year. The global global average is 56 percent.
Hong Kong has the third most positive sentiment in Asia after India and China, according to the Investor Pulse Survey that polled 27,500 investors across 20 markets in July and August to understand people’s financial priorities and investment attitudes.
“The global average is comparatively lower. After the financial crisis in 2008, global investors’ [confidence in] investment prospects and directions are not as good as in Asia,” said Julia Lee, head of Hong Kong retail and iShares distribution at BlackRock.
Investors are still living in the shadow of the financial crisis, especially those in Europe and the US, she said.
The survey also showed that 48 percent of local investors are very optimistic or somewhat optimistic about the equity market compared with the global average of 44 percent.
When asked if the favorable sentiment was influenced by the Shanghai-Hong Kong Stock Connect launched on Monday, Lee said the scheme could have helped drive the positive sentiment.
“Our survey was conducted in July and August. People knew about the Stock Connect at that time but the discussion was not heated back then. I think it may not have had a great impact but absolutely there is some correlation,” she said.
Hong Kong investors held 42 percent of their portfolio in cash against the global average is 53 percent. Most local investors want to keep their investment options open and cash make them feel safe.
Lee said the ideal amount of cash in a portfolio is 34 percent and investors should diversify further out of cash.
– Contact us at [email protected]