🌟 The 2024 SFC-HKMA Joint Survey Report reveals a booming Hong Kong market for investment products!
📈 With transaction volumes hitting HK$6,073B (up 40%), record client participation (1.208M), and a surge in online sales (17%), the market shows strong growth.
This report highlights the thriving development of Hong Kong’s non-exchange traded investment product market in 2024, with record-high transaction volumes, client participation, and product diversity, alongside a surge in online transactions and demand for technology-related products. Explore the executive summary.
Report Background
- The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly conducted an annual survey to collect data on the sale of non-exchange traded investment products to non-professional investors and certain professional investors in 2024.
- The survey covers transactions from January 1 to December 31, 2024, involving products such as Collective Investment Schemes (CIS), bonds, structured products, and other non-exchange traded products.
Key Findings
- Record-High Market Transaction Volume
- The total transaction value of non-exchange traded investment products in 2024 reached HK$6,073 billion, a remarkable 40% surge.
- Registered Institutions (RIs) accounted for 69% of the market share, while Licensed Corporations (LCs) accounted for 31%.
- The top 20 firms contributed 76% of the total transaction value.
- Significant Growth in Investment Product Types
- Collective Investment Schemes (CIS): Transaction value surged by 76% to HK$224.4 billion.
- Structured Products: Transaction value grew by 30% to HK$2,567 billion, with 67% linked to equities.
- Debt Securities: Transaction value increased by 29% to HK$941 billion, with sovereign bonds accounting for 49%.
- Online sales rose from 12% of total transaction value in 2023 to 17% in 2024.
- Record-High Client Participation
- The number of clients completing at least one transaction reached to an all-time high of 1,208,755 in 2024, up 28% year-on-year.
- 90% of clients were non-professional investors, primarily investing in CIS.
- Popularity of Collective Investment Schemes (CIS)
- 80% of CIS transaction value came from money market funds, reflecting investor preference for low-risk, stable-return products.
- 78% of CIS investors completed transactions through online platforms.
- Structured Products Dominate the Market
- Structured products accounted for 42% of total transaction value, with equity-linked products making up 67%.
- Technology, automotive, and internet sectors were the primary underlying assets for equity-linked products, with the technology sector’s share rising from 20% in 2023 to 42% in 2024.
- Sustained Bond Market Momentum
- Sovereign bond transaction value grew by 44%, driven by demand for high-credit-rating bonds.
- Investment-grade corporate bonds saw a 19% increase, reaching HK$271 billion.
- Significant Growth in Online Sales
- Online platform transactions continued to rise, with CIS accounting for 77% and bonds 21% of online sales.
- Increase in Industry Workforce
- The total number of personnel engaged in the sale of non-exchange traded investment products grew by 4% to 19,195.
- Several firms expanded their sales teams to meet growing business demand.
Key Trends and Market Dynamics
- Improved Investor Sentiment: Optimism about mainland China’s policies, expectations of monetary easing by major central banks, and strong global stock market performance drove demand for higher-risk, higher-return products like equity-linked products.
- Continued Appeal of Low-Risk Products: Geopolitical tensions and uncertainties in U.S. policies prompted investors to increase allocations to stable products like money market funds and sovereign bonds.
- Digitalization Trend: The importance of online distribution channels continues to grow, with more investors opting for digital platforms.
Read the full report: SFC-HKMA Joint Survey on the Sale of Non-exchange traded Investment Products 2024
#Finance #Investing #HongKong #MarketTrends
