Hong Kong Exchanges and Clearing Limited (HKEX) is today (Wednesday) pleased to present the results of its Cash Market Transaction Survey 2019, which examines the trading composition of Exchange Participants on Hong Kong’s securities market.
The survey found that the contribution of local Hong Kong retail investors to the cash market trading value, increased to 13.6 per cent in 2019, from 10.3 per cent in 2018. The contribution of overseas institutional and retail investors also rose, to 36.6 per cent and 6.7 per cent respectively for 2019, from 35.1 per cent, and 6.0 per cent respectively in 2018.
The survey also found that investors from over 50 jurisdictions participated in Hong Kong’s securities market during 2019, with those from Asia continuing to be the largest regional group among overseas investors.
Conducted by HKEX, the survey series seeks to understand the relative contribution of trading value in the Hong Kong listed securities market (covering the Main Board and GEM), by investor type. The market share of online trading is also assessed. The 2019 survey covered trading during the period between January and December 2019.
The 2019 survey’s respondents were Exchange Participants that had traded on the HKEX securities market during 2019. The previous survey was conducted in 2019 for trading in the year 2018.
- Overseas investors’ contribution to the total market turnover value was 43 per cent, up from 41 per cent in 2018.
- Local (Hong Kong) investors’ contribution to total market turnover value was at 30.4 per cent (comparable to the 30 per cent in 2018), with the share of local retail investors rising to 13.6 per cent from 10.3 per cent in 2018.
- Overseas investor trading came mainly from institutions – 37 per cent of the total market turnover value (up from 35 per cent in 2018), compared with 7 per cent from overseas retail investors (6 per cent in 2018).
- Overseas investor trading came from over 50 jurisdictions.
- Asian-based investors continued to be the largest contributor group from overseas, contributing 42 per cent of overseas investor trading (42 per cent in 2018) and 18 per cent of total market turnover value (17 per cent in 2018).
- Retail online trading accounted for 57 per cent of total retail investor trading, down from 61 per cent in 2018, and 11 per cent of the total market turnover value.
Distribution of cash market trading value by investor type (2019)
For further information, please see the survey results report on the HKEX website.
- The 2018 survey covered the period from January to December 2018.
- Responses from Exchange Participants to the survey stemmed from their own understanding of their clients. HKEX had no direct access to Exchange Participants’ clients, nor could it verify their identities.
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange, in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.