Hong Kong Exchanges and Clearing (HKEx), which conducted the survey and runs the region’s exchanges, said the participation rate is still low, despite the increase. “The introduction of Mini-HSI futures in October 2000, for which 88% of turnover was contributed by retail investors, might be one major reason for the increase,” said HKEx. Mini-Hang Seng Index (Mini-HSI) futures are aimed at retail investors and are based on Hong Kong’s benchmark Hang Seng Index.
“Stock investors who also invested in HKEx derivatives products were more active traders – holding stocks for a shorter time period, trading more frequently – and were more aggressive in taking risks for higher returns,” added HKEx.
Of those not investing in derivatives, 49% of respondents gave ‘no spare money’ as the reason; while 45% said it was because they had insufficient knowledge of the market or its products. About 11% regarded derivatives investment as being too risky.