Investor survey finds mainland and Hong Kong investors upbeat on markets close to home
Mainlanders and Hongkongers both plan to invest more in global markets over the next 12 months, according to a survey by Hang Seng Bank.
The survey conducted in January polled 3,000 investors from Shanghai, Shenzhen, Beijing, Guangzhou and Hong Kong who have at least HK$1 million to invest.
It showed 70 per cent of mainland respondents and 55 per cent of Hong Kong respondents want to invest globally in next 12 months.
But the definition of global investment is close to home, with 36 per cent of mainlanders citing Hong Kong stocks as their first international market of choice, while 20 per cent Hong Kong investors cited mainland markets as their first international market of choice, the survey showed.
“This showed Hong Kong and mainland investors are both very home market minded. There would be a lot of growth of the two stock connect schemes that tie up the stock markets between Hong Kong with Shanghai and Shenzhen,” said Rosita Lee, head of investment products and advisory business at Hang Seng Bank.
The US ranked second most favourable overseas markets for mainlanders and Hongkongers. Meanwhile, 20 per cent of mainlanders want to invest in the US, 9 per cent in Britain, 8 per cent in Singapore and 7 per cent in Switzerland.
Among Hong Kong investors, 14 per cent want to invest in the US, followed by Britain and Australia at 7 per cent and Japan at 6 per cent.
Stocks are the favourite investment products for both Hong Kong and mainland investors, with 26 per cent of mainlanders and 35 per cent of Hongkongers looking favourably upon equities. The other sectors include are funds, bonds and other financial products.
In terms of industries, more than 50 per cent of mainlanders and Hongkongers believe new economy stocks will outperform industrial stocks in the medium term. Among them, renewable energy companies ranked at the top of the list, favoured by 35 per cent of respondents, followed by internet services companies and environmental companies.