HKEx Retail Investor Survey 2014 Key Findings€¦ · HKEx Retail Investor Survey 2014 ......
Transcript of HKEx Retail Investor Survey 2014 Key Findings€¦ · HKEx Retail Investor Survey 2014 ......
HKEx Retail Investor Survey 2014
2 2
Content
1. Retail participation rates
2. Investor profile
3. Stockholding and trading pattern
4. Derivatives trading pattern
5. Trading channel and online trading
6. Investor perceptions of the HKEx markets
Appendix 1. Survey methodology
Appendix 2. Glossary
HKEx Retail Investor Survey 2014
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1. Retail participation rates
Stock investors reached the highest level in record — 2.25 million individuals, 36.2%
of Hong Kong adult population.
Figure 1. Trend of stockowners and stock investors
9.0%8.0%
9.0%
14.0%
13.0%
19.0%18.6%
19.0%
15.9%
22.8%
27.0%
32.4% 32.6%33.8%
34.5%
9.0%10.0%
16.0%16.0%
21.5%20.3% 19.8%
17.5%
24.4%
28.6%
35.7%35.0%
35.7% 36.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
400
800
1,200
1,600
2,000
2,400
2,800
1989 1992 1994 1997 Jan
1999
Nov
2000
Dec
2001
Dec
2002
Dec
2003
Oct
2004
Dec
2005
Dec
2007
Dec
2009
Dec
2011
Dec
2014
Per
cent
age
of a
dult
pop
ulat
ion
as
stoc
kow
ners
/ s
tock
inv
esto
rs
Pro
ject
ed n
umbe
r of
sto
ckow
ners
/
stoc
k in
vest
ors
('000
)
Trend of stock owners and stock investors
Projected number of stockowners Projected number of stock investors
Percentage of adult population as stockowners Percentage of adult population as stock investors
HKEx Retail Investor Survey 2014
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1. Retail participation rates (cont’d)
95% of stock investors invested in equities traded on HKEx.
Stock investors’ participation rate in ETFs is high — 30% (or 11% of adult population).
Collectively, about 10% of stock investors invested in warrants and/or CBBCs — 9.1% in
warrants and 4.5% in CBBCs.
80% of stock investors had stock transactions in the 12 months preceding the survey interview
(i.e. stock traders).
Figure 2. Percentage of stock investors by type
Note: Findings on characteristics of CBBC investors are subject to relatively large error due to the small sample size.
94.7%
9.1%4.5%
30.5%
79.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equity
investors
Warrant
investors
CBBC
investors
ETF
investors
Stock
traders
% o
f st
ock
in
ves
tors
Percentage of stock investor by types
HKEx Retail Investor Survey 2014
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1. Retail participation rates (cont’d)
Investor participation in HKEx derivatives market remained relatively low —
~100,000 individuals, 1.6% of the adult population.
Figure 3. Trend of derivatives investors
Note: Findings on characteristics of derivatives investors are subject to relatively large error due to the small sample size.
HKEx Retail Investor Survey 2014
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1. Retail participation rates (cont’d)
Hong Kong individuals’ participation in Mainland China and other overseas stock
markets is relatively low.
Figure 4. Participation in Mainland stock market Figure 5. Participation in other overseas markets
135
251
183 153
209
2.4%
4.4%
3.1%
2.5%
3.3%
0%
1%
2%
3%
4%
5%
0
50
100
150
200
250
300
350
400
Dec 2005 Dec 2007 Dec 2009 Dec 2011 Dec 2014
Perc
enta
ge o
f adult
popula
tion
Pro
jecte
d n
um
ber
of
indiv
iduals
('0
00)
Trend of HK adults invested in overseas stock markets other than China (2005 - 2014)
HKEx Retail Investor Survey 2014
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2. Investor profile
■ 47 years old
■ Tertiary or above education
■ Monthly personal income:
~HK$22,500
■ Monthly household income:
~HK$45,000
■ 42 years old
■ Tertiary or above education
■ Monthly personal income:
~HK$35,000
■ Monthly household income:
~HK$75,000
Typical Hong Kong
retail stock investor
Typical Hong Kong
retail derivatives investor
HKEx Retail Investor Survey 2014
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3. Shareholding and trading pattern
For stock investors, the median stockholding value is HK$200,000 and the median listed
company shareholding value is HK$150,000.
ETF investors and warrant investors tend to have a higher stockholding value.
Figure 6. Median stockholding and shareholding value by stock investor type
Note: Stockholding refers to the holding, at the time of the interview, of all HKEx cash market products.
Listed company shareholding refers to the holding, at the time of the interview, of listed company shares traded on HKEx.
200 200
400
100
300
150 150
270
100
200
0
50
100
150
200
250
300
350
400
450
500
All stock
investors
Equity
investors
Warrant
investors
CBBC
investors
ETF
investors
(HK
$'0
00
)
Median stockholding value by stock investor types
Stockholding value Shareholding value
HKEx Retail Investor Survey 2014
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3. Shareholding and trading pattern (cont’d)
In median terms, a stock investor had 6 stock transactions and a stock trader (i.e. excluding non-
trading stock investors) had 10 stock transactions in 2014.
Warrant and CBBC investors traded much more frequently than general stock investors.
Figure 7. Median number of stock transactions in the past 12 months
6 6
38
50
10 10
0
10
20
30
40
50
60
All stock
investors
Equity
investors
Warrant
investors
CBBC
investors
ETF
investors
All stock
traders
Median number of stock transactions in the past 12 months (2014)
Including non-trading investors
HKEx Retail Investor Survey 2014
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3. Shareholding and trading pattern (cont’d)
In median terms, a stock trader had an average stock transaction value of HK$50,000.
Warrant and CBBC investors tended to have a smaller deal size than equity investors.
Figure 8. Median average stock transaction value
Note: Stock transaction value refers to transactions in all HKEx cash products.
50,000 50,000
44,000
30,000
50,000
0
10,000
20,000
30,000
40,000
50,000
60,000
All
stock traders
Equity
investors
Warrant
investors
CBBC
investors
ETF
investors
(HK$)
Median average stock value in the past 12 months (2014)
HKEx Retail Investor Survey 2014
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4. Derivatives trading pattern
In median terms, a derivatives investor had 6 derivatives
transactions on HKEx in 2014, with an average transaction size
of 2 contracts.
Note: (1) Derivatives are futures and options traded on HKEx.
(2) Reflecting the nature of derivatives trading, all derivatives investors had
derivatives transactions during the 12-month period, i.e. all derivatives
investors are derivatives traders.
(3) Findings are subject to relatively large error due to the small sample size.
HKEx Retail Investor Survey 2014
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5. Trading channel and online trading
The majority of stock traders traded mainly through banks (75%).
Figure 9. Stock trading channels of stock traders
Mainly through banks
(74.9%)
Same usage of
banks and broker firms
(1.4%)
Mainly through
broker firms
(23.7%)
Banks only
71.2%
Usually banks
3.7%
Broker
firms only
19.7%
Usually
broker
firms
4.0%
Stock trading channels of stock traders (2014)
HKEx Retail Investor Survey 2014
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5. Trading channel and online trading (cont’d)
The majority of derivatives investors traded mainly through broker firms.
Figure 10. Derivatives trading channels of derivatives traders
Mainly through banks
(28.4%) Mainly through
broker firms
(71.6%)
Banks only
28.4%
Broker firms
only
69.8%
Usually broker
firms
1.8%
Derivatives trading channels of derivatives investors (2014)
HKEx Retail Investor Survey 2014
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5. Trading channel and online trading (cont’d)
Investors trading mainly through broker firms tended to have a higher trading
frequency than those trading mainly through banks.
Table 1. Trading pattern of stock traders by trading channel
Trading in the 12-month period preceding the interview Mainly through
banks
Mainly through
broker firms
Median number of stock transactions* 10 16
Median average value per stock transaction (HK$)* 50,000 50,000
Median implied total stock transaction value (HK$)* 400,000 1,000,000
Contribution to total stock transaction value of all stock traders 62% 36%
* Excluding outliers.
Table 2. Trading pattern of derivatives traders by trading channel
Trading in the 12-month period preceding the interview Mainly through
banks
Mainly through
broker firms
Median number of derivatives transactions* 4 10
Median average contract volume per derivatives transaction* 4 2
Median implied total derivatives contract volume* 12 80
* Excluding outliers.
HKEx Retail Investor Survey 2014
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5. Trading channel and online trading (cont’d)
Online stock traders as a proportion of all stock traders rose to 73%.
Online derivatives traders as a proportion of all derivatives traders rose to 84%.
Figure 11. Trend of online stock traders and online derivatives traders (2002 – 2014)
44.2%
30.1%35.8%
38.5%
58.8%66.9%
68.7%
73.0%
29.9%26.1%
29.3%
37.5%
49.2%
69.1%
67.2%
84.0%
0%
20%
40%
60%
80%
100%
Dec 2002 Dec 2003 Oct 2004 Dec 2005 Dec 2007 Dec 2009 Dec 2011 Dec 2014
Trend of online stock traders and online derivatives traders (2002 - 2014)
Online stock traders as percentage of all stock traders
Online derivatives traders as percentage of all derivatives traders
HKEx Retail Investor Survey 2014
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6. Investor perceptions of the HKEx markets
Investors had generally positive perceptions of all aspects of the HKEx stock and derivatives
markets assessed in the survey. Notes: A 7-point rating scale ranging from “Strongly Disagree” (score 1) to “Strongly Agree” (score 7) was used in the survey
questionnaire. The classification into Agree (score 5-7) – Average (score 4) – Disagree (score 1-3) was used for presentation in
the charts below for the purpose of easy understanding.
Mean
Score
5.63
5.30
5.17
5.03
Figure 12. Perceptions of the Hong Kong stock market by stock investors (2014)
Mean
Score
5.02
4.88
4.81
4.36
4.16 68%
76%
78%
87%
16%
12%
12%
7%
14%
12%
10%
6%
2%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Perceptions of the Hong Kong stock market (2014)
Agree Average Disagree No comment / don’t know
The Hong Kong stock market is a fair and orderly market
Regulation of stock brokers is effective
There is good trading information available in the Hong Kong
stock market
There are enough good quality listed companies available for investment
36%
49%
63%
64%
70%
17%
19%
20%
17%
15%
26%
28%
17%
18%
15%
21%
4%
1%
1%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Perceptions of the Hong Kong stock market (2014)
Agree Average Disagree No comment / don’t know
Regulation of listed companies is
Listed companies have good disclosure of information
Stock investors are well-protected
Regulation of insider trading is effective
Regulation of the issuers of warrants/CBBCs is effective
HKEx Retail Investor Survey 2014
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6. Investor perceptions of the HKEx markets (cont’d)
Figure 13. Perceptions of the HKEx derivatives market by derivatives investors
Figure 14. Perceptions of HKEx
Mean
Score
4.80
4.80
3.85
4.46
Mean
Score
4.77
4.36
4.25 46%
48%
55%
61%
18%
26%
15%
23%
36%
26%
30%
16%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Perceptions of the HKEx derivatives market (2014)
Agree Average Disagree No comment / don’t know
The HKEx derivatives market is a fair and orderly market
There is good trading information available in the HKEx derivatives market
Regulation of HKEx derivatives brokers is effective
HKEx derivatives investors are well-protected
49%
62%
62%
4%
15%
15%
47%
20%
21%
2%
2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Perceptions of HKEx (2014)
Agree Average Disagree No comment / don’t know
All derivatives investors
HKEx gives priority to the public interest
All retail investors
All stock investors
HKEx Retail Investor Survey 2014
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Appendix 1. Survey methodology
Fieldwork period: 12 Nov 2014 – 23 Dec 2014
Random sampling of individuals aged 18 or above in Hong Kong
Total sample size: 2,271 individuals
1,006 stock Investors
45 derivatives investors
HKEx Retail Investor Survey 2014
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Appendix 2. Glossary
Term Description
Derivatives
investor
An individual who was holding futures and options traded on HKEx at the time
of interview or had traded derivatives in the 12 months preceding the interview.
Online stock
Trader
A stock trader who had traded stocks in the 12 months preceding the interview
through electronic media such as the Internet, either always or sometimes.
Retail investor An individual who is a stock investor AND/OR a derivatives investor.
Stock investor An individual who was holding stocks at the time of interview OR had traded
stocks in the 12 months preceding the interview. (That is, the individual is a
stockowner and/or a stock trader.)
Stock trader An individual who had traded stocks in the 12 months preceding the interview.
Stockowner An individual who was holding stocks at the time of the interview.
Stocks Equities (i.e. shares of listed companies), warrants, Callable Bull/Bear Contracts
(CBBCs), Exchange Traded Funds (ETFs), Real Estate Investment Trusts
(REITs), bonds and other cash market products listed or traded on HKEx.
Equity investor /
Warrant investor /
CBBC investor /
ETF investor
An individual who was holding the type of securities at the time of the interview
or had traded them in the 12 months preceding the interview.