Hong Kong is more popular than London and New York for stocks and options that are cross-border traded in the three markets, according to a Securities and Futures Commission research paper. The paper shows that excluding HSBC, Hong Kong last year accounted for 82 per cent of turnover in 52 stocks, including 35 H-share and red-chip stocks and 17 non-mainland Hang Seng Index constituent stocks, that traded in the three markets, compared with 10 per cent in the United States and 8 per cent in London. A European fund manager said the findings were not surprising. 'International fund managers invest in stocks that usually have the largest turnover in the home market. That's why we invest in Hong Kong and mainland stocks mostly in Hong Kong, even though we also have set up in London and New York,' the fund manager said. 'This SFC paper showed investors have little interest in overseas stocks they are not familiar with. 'The seven Nasdaq stocks listed in Hong Kong since 2000 have almost no trading at all,' he said. HSBC is an exception in that 75 per cent of the stock's turnover was in London, where it is based, followed by 22 per cent in Hong Kong and 3 per cent in the US. 'HSBC has a lot of business in Europe and the US nowadays. It is natural for European and Middle Eastern investors to like to trade the stock in London where the bank is headquartered,' said Christopher Cheung Wah-fung, chairman of the Hong Kong Securities Professionals Association. Among the 35 mainland companies, 79 per cent of trade occurs in Hong Kong, followed by 14 per cent in New York and 7 per cent in London. Hong Kong accounted for 75 per cent of the nine stock options traded in both Hong Kong and New York, excluding over-the-counter trading.