Hong Kong retail investors look to ELIs for their yield needs
Retail investors in Hong Kong are favouring equity-linked investments on the back of more stringent regulatory requirements for structured products. At the same time, the appetite for foreign exchange-linked products – most of which escape the new rules – continues to develop in volume and sophistication
Equity-linked investments (ELIs) continue to benefit from the increased requirements from new laws introduced in Hong Kong last year, which govern and restrict the buying of structured notes by retail investors.
"The regulation change in May 2011 brought about significant changes in the market, and the position now is that all types of structured products designed to be offered to retail investors have to be signed off and authorised by the Hong Kong's Securities & Futures Commission (SFC)
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