‘More aggressive’ Hong Kong investors expect a return of 11.4%

This is a new high, according to Schroders Global Investor Study.

Hong Kong investors are becoming “more aggressive” as they expect an all-time high investment return of 11.4% per annum over the next five years, a study found.

This is higher than the 10.3% recorded from the previous year.

“It’s pleasing to see that investors in Hong Kong have become more attentive to their investments and taking a longer-term view on their finances,” Amy Cho, CEO, Hong Kong and Head of Distribution, Asia Pacific, Schroders, said.

The unprecedented pandemic may have been a wakeup call to adjust their financial habits, and better equip themselves for the uncertainties and opportunities that lie ahead.”

The Schroders Global Investor Study 2021 surveyed more than 23,000 people across 32 locations globally, including 500 from Hong Kong.

It found that 76% of people in the city spent more time thinking about their financial well-being and reorganizing their personal finances since the pandemic started.

Owing to significant levels of concern on both current and future financial well-being, Hong Kong investors have placed more emphasis on their savings, with 80% of them having saved as much as they planned to or saved more than they intended to.

By geography, most Hong Kong investors (86%) take preference on Asia, followed by Europe (67%), and North America (58%).

“Whilst it could well be due to home-bias that Hong Kong investors are keen on Asia as an investment destination, we continue to be convinced of the prospects of the region,” Cho said.

“Asia has leveraged on disruptions brought by the pandemic to accelerate the development of digital innovations critical to the post-pandemic era,” she added, noting this includes remoted communications, digital healthcare, and mobile payments amongst others.

Levels of investment knowledge also improved amongst Hong Kong investors with 50% of them describing themselves as having an “intermediate” level of investment knowledge, compared to 43% a year ago.

Meanwhile, a third of investors (34%) also purported themselves as ‘expert/advanced’ investors, a slight increase from 31% a year ago.