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Hong Kong SFC-HKMA Investment Product Survey 2021: $638 Billion Transacted & 18,346 Headcount, Top 3 Products are Structured Products, Collective Investment Schemes & Debt Securities

30th September 2022 | Hong Kong

The Hong Kong Securities & Futures Commission (SFC) and central bank Hong Kong Monetary Authority (HKMA) have released the 2nd annual survey of the sale of non-exchange traded investment products in 2021.  The total value of investment products in 2021 is $638 billion (-12%, HKD 5 trillion) and the top 3 most popular investment products are Structured products ($303 billion, 48%), Collective Investment Schemes ($189 billion, 30%), and Debt Securities ($104 billion, 16%).  For Structured products, the top 3 products are Equity Accumulators / Decumulators (37%), Equity Products (33%), Currency Products (13%) and the top 3 equity product sectors are Internet (46%), Financial (15%), Automotive (11%).  The total investment sales headcount in 2021 is 18,346.  Key summary & findings below.  View SFC & HKMA Survey: here

” $638 Billion Transacted & 18,346 Headcount, Top 3 Products are Structured Products, Collective Investment Schemes & Debt Securities “

 


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Hong Kong Investment Product Survey 2021

Hong Kong, Asia’s leading financial centre

Key 2021 Findings:

  • Total value of investment products: $638 billion (-12%, HKD 5 trillion)
  • No. of firms selling investment products: 390 (+5%, 2020: 372)
  • Total Investment Sales Headcount: 18,346
  • No. of investors with at least 1 investment transaction: 775,812 (+5%)
  • Why decline in total value investment products: Key decline in Structured products, debt securities.  Unfavourable market sentiment & volatile markets in 2021 
  • Top increase in structured products: Equity
  • Top decline in structured products: Commodity, Currency 
  • Increase in online platforms to distribute products: 70 firms (2020: 58 firms)
  • Total investments via online platforms: $37.5 billion (6% of total investments)
  • Most popular investments via online platforms: Collective investment scheme
  • Total 20 firms account for 82% of non-exchange traded investment products 
  • The remaining 18% were transacted by 370 firms

 

Key 2021 Investment Findings:

  • Top 3 investment products (94%): Structured products ($303 billion, 48%), Collective Investment Schemes ($189 billion, 30%), Debt Securities ($104 billion, 16%)
  • Top 3 structured products: Equity Accumulators / Decumulators (37%), Equity Products (33%), Currency Products (13%)
  • Top 3 equity structured products by sectors: Internet (46%), Financial (15%), Automotive (11%)
  • Top 3 currency products: RMB / USD (47%), JPY / USD (21%), EUR / USD (5%)
  • Top 3 collective investment schemes: Money Market (33%), Bond (23%), Equity (14%)
  • Top 3 debt securities: Unrated Corporate Bonds  (30%), Non-Investment Grade Corporate Bonds (28%), Investment Grade Corporate Bonds (24%)

 

2021 Headcount:

  • Total Investment Sales Headcount: 18,346
  • Licensed representatives for LCs: 5,455
  • Licensed representatives for RIs: 12,891

2021 Top Investments by Product Type ($638 billion):

  • Structured products – $303 billion, 48%
  • Collective Investment Schemes / Funds – $189 billion, 30%
  • Debt Securities – $104 billion, 16%
  • Swaps – $34.6 billion, 5%
  • Repos & others – $6.2 billion, 1%

 

1) Structured Products ($303 billion, 48%)

  • Equity Accumulators / Decumulators – 37%
  • Equity Products – 33%
  • Currency Products – 13%
  • Currency Accumulators / Decumulators – 5%
  • Commodity – 6%
  • Interest Rate – 2%
  • Others – 2%
  • Index – 1%
  • Credit – 1%

Top Equity Structured Products by Sector

  • Internet – 46%
  • Financial – 15%
  • Automotive – 11%
  • Multiple Sectors – 10%
  • Technology – 7%
  • Materials – 4%
  • Others – 4%
  • Telecommunications – 3%

Top Currency Structured Products 

  • RMB / USD – 47%
  • JPY / USD – 21%
  • EUR / USD – 5%
  • GBP / USD – 4%
  • AUD / USD – 3%
  • Others – 20%

 

2) Collective Investment Scheme (30%, $189 billion)

  • 2021: $189 billion (HKD 1.49 trillion)
  • 2020: $181 billion (HKD 1.42 trillion)
  • Top 25 firms contributed to 83% of total investments

Top Collective Investment Schemes (Invested by 81 Largest firms):

  • Money Market – 33%
  • Bond – 23%
  • Equity – 14%
  • Balanced – 11%
  • Others – 9%
  • Private Equity – 7%
  • Hedge Funds – 3%

 

3) Debt Securities ($104 billion, 16%)

  • Unrated Corporate Bonds  – 30%
  • Non-Investment Grade Corporate Bonds – 28%
  • Investment Grade Corporate Bonds – 24%
  • Sovereign Bonds – 15%
  • Others – 3%

Top 5 Corporate Bonds Issuers (Invested by 81 largest firms):

  • Mainland China – 53%
  • Hong Kong – 37%
  • Others – 5%
  • United States – 2%
  • United Kingdom – 2%
  • Japan – 1%

Remaining Duration / Tenor of Top 5 Corporate Bonds (Invested by 81 largest firms):

  • Less than 1 year – 48%
  • 1 – 4 years – 32%
  • 5 – 9 years – 4%
  • 10 years or above – 3%
  • Perpetual bonds – 13%

Annual Coupon Rate of Top 5 Corporate Bonds (Invested by 81 largest firms):

  • Less than 3% – 32%
  • 3 – 5% – 34%
  • 6 – 10% – 17%
  • 11% & above – 13%
  • Zero Coupon – 4%

Top 3 Sovereign Bonds (Invested by 81 largest firms):

  • Hong Kong – 49%
  • China – 26%
  • South Korea – 14%

 

Survey questionnaires were sent to 2,223 LCs and 111 RIs licensed or registered for Type 1, Type 4 or both regulated activities and over 99% responded. The survey covered the sale of non-exchange traded investment products from 1 January to 31 December 2021 (the reporting period) by respondent firms to non-professional investor (PI) clients, individual PIs and certain corporate PIs.  This is the second survey conducted annually by the SFC and the HKMA on all the LCs and RIs which engaged in selling activities. The above findings were based on responses from a total of 327 LCs and 63 RIs which reported sale of investment products during the reporting period.

Respondent firms were requested to report only one side of the transaction. Rollovers, redemptions and position close-outs were not included.




2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM

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