Hong Kong Securities and Futures Commission and Hong Kong Monetary Authority are jointly investigating: In 2024, sales of investment products and market participation in Hong Kong reached record highs.

On September 4, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) released the annual joint survey results on the distribution of over-the-counter investment products in Hong Kong. The results showed that in 2024, sales and market participation of such products reached a record high. The total trading volume of over-the-counter investment products by licensed corporations and registered institutions surged by 40% to a record-breaking HK$607.3 billion in 2024. Market participation also saw a widespread increase compared to the previous year. The number of companies engaged in the sale of investment products increased by 9% to a new high of 414, with as many as 46% of companies recording a year-on-year sales increase of more than double. The number of large companies increased by 12% to 101. Additionally, the number of personnel responsible for distributing investment products increased by 4% to over 19,000, and the number of customers completing at least one transaction increased by 28% to over 1.2 million, both reaching historical highs. In 2024, all major categories of investment products saw significant sales growth. Sales of recognized collective investment schemes rose by 96% to HK$1.4 trillion, while sales of unregistered collective investment schemes grew by 50% to HK$844 billion. Sales of structured products and debt securities increased by 30% and 29% respectively. Companies surveyed widely observed that investor sentiment was higher than a year ago, actively seeking products that match their risk appetite and investment goals. Equity-linked products flourished in a strong market, remaining the best-selling category of structured products, with sales reaching HK$1.729 trillion, a 43% increase year-on-year. Meanwhile, money market funds and sovereign bonds were considered low-risk and provided attractive returns in the high-interest environment at the time in 2024, remaining attractive to investors. The survey showed that sales of money market funds grew, accounting for 80% of the total trading volume of the top five collective investment schemes reported by large companies, up from 76% in 2023. Sovereign bonds were also popular, accounting for 49% of the total trading volume of debt securities sold last year, up from 44% the year before. Dr. Ye Zhi-hang, Executive Director of the Intermediaries Division of the SFC, stated that the significant increase in product sales highlights these companies' commitment to the Hong Kong financial market and investors' trust in the market. The SFC is firmly establishing a robust regulatory framework to allow businesses to develop while safeguarding the interests of investors. Mr. Au Yat-lun, Assistant Chief Executive (Banking Conduct) of HKMA, stated that the strong growth in investment trading reflects investors' confidence and interest in the dynamism of the Hong Kong investment market, supporting the sustainable development of the market ecosystem. The survey results will help regulatory agencies coordinate and implement regulatory work more effectively in response to market developments and safeguard investors. Other key points observed in this survey include: In 2024, structured products remained the most sold product category by surveyed companies, accounting for 42% (HK$25.67 trillion) of the total trading volume. Collective investment schemes and debt securities also ranked in the top three, accounting for 37% (HK$22.44 trillion) and 15% (HK$9.41 trillion) respectively. Equity-linked products accounted for 67% of all structured products sold in 2024, higher than the 61% in 2023. In the top five products reported by large companies, stocks related to the technology (42%), automotive (23%), and internet (22%) industries were prominent. Online sales accounted for 17% of the total trading volume reported by all surveyed companies (12% in 2023). In 2024, the number of surveyed companies distributing investment products online continued to grow by 13% to 104. Collective investment schemes remained the most sold product category on online platforms, accounting for 77% of total online sales, followed by 21% of debt securities.