Survey: HK retail stock investors concern about listed companies fundamentals

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Last updated at: (Beijing Time) Thursday, March 04, 2004

Survey: HK retail stock investors concern about listed companies fundamentals

Hong Kong retail investors were discerning with respect to their investment decisions, according to a Retail Investor Survey made by the Securities and Futures Commission (SFC).

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Hong Kong retail investors were discerning with respect to their investment decisions, according to a Retail Investor Survey made by the Securities and Futures Commission (SFC).

The survey results, announced Wednesday, looked into the investment behavior of retail investors, what deterred people from investing and factors that might prompt them to invest in the future. The survey was carried out in October and November, 2003.

Out of 5,168 Hong Kong adults who answered the screening question about their investment experience, 1,541 said they had invested in on or more products in the previous two years. The participation rate was almost 30 percent.

Of the 1,541 respondents, 1,010 provided further information on their investment choices and trading habits. And 23.8 percent of them have stocks traded on Hong Kong stocks exchanges and 9.8 percent chose funds.

More importantly, the survey finds that stock investors took proper measures to protect their interests in dealing with their intermediaries. Prior to dealing, 78.2 percent of brokerage clients had checked the license status of the brokerage, the account executive, or both.

Nearly 33 percent of stock investors, understood fees and charges of stock trading services well. On monitoring their investments, 91.6 percent checked both contract notes and account statements.

The survey also showed that stock investors concerned about a listed company's fundamentals before buying its stock. Beside, 82.5 percent of stock investors conducted their own analysis.

When buying initial public offering (IPO) shares, 36 percent ofstock investors looked at the background and reputation of the newly listed company, 27.5 percent based on comments in the media and on financial information websites.

The survey also showed that retail investors did look to adviceof market professionals and media analyses in evaluating investment opportunities. Over 42 percent of stock investors referred to celebrity analysts' comments and analyses of newspapers and televisions.

A SFC spokesman said, "The SFC strongly believes that investor education is key to investor protection. Information collected in this survey will facilitate the SFC in its future investor education work."

Source:Xinhua

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