Local investors have regained the largest share of securities market trading at Hong Kong Exchanges and Clearing Limited (HKEx), according to the findings from HKEx's Cash Market Transaction Survey 2013/14.
The survey found local investors contributed 45 per cent of total turnover of HKEx's securities market from October 2013 to September 2014 (2013/14), up from 38 per cent in the previous 12-month period (2012/13), and overseas investors' contribution dropped from 46 per cent in 2012/13 to 39 per cent in 2013/14. The survey also found institutional investors contributed 58 per cent of total market turnover value in 2013/14 (61 per cent in 2012/13), while the contribution from retail investors was 25 per cent (22 per cent in 2012/13). (See Figures 1 and 2.)
Other findings of the 2013/14 survey
- Overseas institutional investors had the biggest share in market trading among the four investor types (local/overseas and retail/institutional), contributing 34 per cent of total market turnover, down from 41 per cent in 2012/13 (see Figure 1).
- Local institutional investors contributed 24 per cent to total market turnover, up from 20 per cent in 2012/13 (see Figure 1).
- Local retail investors contributed 20 per cent to total market turnover, up from 18 per cent in 2012/13 (see Figure 1).
- Exchange Participants' principal trading remained at a record high of 16 per cent of total market turnover in 2013/14 (see Figure 1).
- The US, the UK, Mainland China and the rest of Europe continued to account for most of the trading value contributed by investors from outside Hong Kong (see Figure 3):
- UK investors led overseas investor trading in 2013/14 with a contribution of 28 per cent, up from 26 per cent in 2012/13.
- US investors, the second largest contributors, accounted for 26 per cent of overseas investor trading in 2013/14, down from 28 per cent in 2012/13.
- Mainland investors ranked third with a contribution to overseas investor trading of 13 per cent in 2013/14, up from 11 per cent in 2012/13.
- The contribution of investors from Continental European investors to overseas investor trading was 10 per cent in 2013/14, down from 14 per cent in 2012/13.
- Asian investors in aggregate contributed 29 per cent of overseas investor trading in 2013/14, up from 24 per cent in 2012/13.
- There were 21 reported origins of overseas investors in Asia and over 43 reported origins of overseas investors outside Asia, Europe and the US.
- Over the past decade, trading from Mainland Chinese investors grew at a compound annual rate of 28 per cent, the highest of all individual overseas origins (see Table 1).
- Retail online trading accounted for 38 per cent of total retail investor trading (compared to 39 per cent in 2012/13) and 9 per cent of total market turnover (compared to 8 per cent in 2012/13) (see Figure 4).
The Cash Market Transaction Survey has been conducted annually since 1991. Each year's survey covers Hong Kong's securities market turnover for the 12-month period from October the previous year to September the following year. For the 2013/14 survey, questionnaires were sent to a target population of 481 Exchange Participants. The response rate was 90 per cent by number and 97 per cent by turnover value of the target respondents.
The full report on the HKEx Cash Market Transaction Survey 2013/14 is available on the HKEx website.