Hong Kong retail investors show growing ESG awareness, but actions fall short of intent, Pictet-HKUST survey shows

While more than half of those surveyed said they plan to invest in ESG products in the next 12 months, only 5 per cent had actually invested in such products

Net investment flows into ESG funds in Hong Kong nearly doubled to US$40 billion last year, according to Morningstar

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Retail investors in Hong Kong are keen on sustainable investing, but they lack confidence, a survey showed. Photo: Jonathan Wong

Published: 9:30am, 27 Apr 2022

Retail investors in Hong Kong are showing an increasing interest in sustainable investing, but they are hampered by a lack of information, tools and confidence in environmental, social and governance (ESG) products, a study found.

Nearly 55 per cent of the 3,770 respondents who were aware of ESG investment said they plan to invest in ESG products in the next 12 months, according to a joint survey conducted by Pictet Asset Management and the Hong Kong University of Science and Technology (HKUST).

Some 75 per cent of those polled said they would allocate 10 to 40 per cent of their total investment into ESG products.

“We are starting to see more demand,” said Freeman Tsang, head of intermediaries for Asia except Japan at Pictet Asset Management. He, however, added that investors were held back by several factors, such as lack of education, types of investment categories and expectation.

Hong Kong’s market for ESG funds has been gaining traction, with net investment flows into ESG funds approved by the Securities and Futures Commission nearly doubling to US$40 billion last year, from US$21 billion in 2020, according to Morningstar.