Global Investor Study

Hongkongers’ risk appetite remains high

Hong Kong investors are willing to take on more risk compared to their global and Asia peers, the Schroders Global Investor Study 2018 revealed.

18/12/2018

The study, which surveyed more than 22,000 investors in 30 markets, including 550 Hong Kong investors, showed that Hong Kong investors allocate 69% of their investment portfolio to high- and medium-risk investments, which is much higher compared to their global (56%) and Asia (57%) counterparts. 

  Hong Kong Asia Global
% of investment portfolio allocated in high risk 29% 22% 19%
% of investment portfolio allocated in medium risk 40% 35% 37%
% of investment portfolio allocated in low risk 31% 43% 44%

Using multi-asset strategies to diversify risks and returns

While Hong Kong investors are willing to take on more risk compared to their global and Asia peers, it appears they are cognisant of the importance of portfolio diversification.

The study showed that a majority (73%) of Hong Kong investors believe their investment portfolios are diversified enough, and that over four-fifths (82%) of all Hong Kong respondents have invested more in multi-asset investment strategies compared with five years ago.

As asset classes tend to behave differently in different economic cycles, Schroders believes that by adopting a diversified and proactive asset allocation approach, investors can diversify risks and generate sustainable income and attractive overall returns.

Embrace uncertainty and seize opportunities

Hong Kong investors look for value and pay attention to fundamentals when selecting assets. When global stock markets go down, two-fifths (40%) of Hong Kong investors said they would invest more in stock markets or bonds, compared to global (31%) and Asia (39%), according to the Schroders study. This shows that Hong Kong investors can better embrace uncertainty and seize opportunities by keeping their finger on the pulse of market movements.

 

Important Information
Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.
The information contained in this document is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.
Derivatives carry a high degree of risk and should only be considered by sophisticated investors.
This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.