Hong Kong Provides Investment Products Market Survey
by Mary Swire, Lowtax.net, Hong Kong
16 December, 2014
The Securities and Futures Commission (SFC) has released the results of a new survey on the sale of non-exchange-traded investment products to individual investors in Hong Kong, so as to provide an overview of the types and value of the products sold by the corporations it licenses.
The survey showed that 213 licensed corporations, including investment advisors, asset management firms, brokers and international financial conglomerates, engaged in the sale of investment products with an aggregate transaction amount (the amount paid by investors for those products) of HKD468bn (USD60bn), during the 12-month period ended 31 March 2014.
Compared with the SFC's previous survey conducted in 2012, the aggregate transaction amount reported in this year's survey had declined by about 8 percent, from USD510bn. This was mainly due to two international financial conglomerates switching sales of investment products from their licensed corporations to banking entities.
The survey results also showed that the top 10 firms in terms of transaction amount accounted for 79 percent of total sales, and they also acted as major product issuers to individual investors. Sales to market professionals, such as banks, were not included.
In addition, this year's findings showed an upward trend in the sale of non-investment grade corporate bonds, which suggested that individual investors were looking for higher returns in a low interest rate environment.
The investment products covered in the survey included structured investment products, government and corporate bonds, swaps and repos, collective investment schemes and hedge funds. Among those excluded from the survey were leveraged foreign exchange products, insurance products, mandatory provident funds, pooled retirement funds, listed securities, exchange-traded funds and exchange-traded derivatives.
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