- Why Calastone?
The majority of global investors have a positive view of the market, and are planning to invest in the near future, despite the economic downturn caused by the COVID-19 pandemic.
The results were shown in a survey conducted by Calastone – the largest global funds network – where investors were asked about their likelihood to invest in the markets since COVID-19. A clear majority of respondents remain undeterred despite recent events. Calastone surveyed a total of 1,800 people in Hong Kong, the UK, the US, Australia, New Zealand and Germany, to assess current investment behaviours and appetite in the context of the current COVID-19 pandemic, as well as to understand their future sentiment as the situation evolves.
Figure 1: Investment action since COVID-19 (Calastone and DJS Research)
In Hong Kong, 58% of investors are bullish, having made new investments already, or considering doing so in the near future. The study has also revealed that well over a third (41%) of investors in Hong Kong were in fact actively making new investments in light of COVID, looking to capitalise on the continued market volatility (see Figure 2).
Figure 2: Investing in light of COVID – Generational Overview – Investors by age (Calastone and DJS Research)
The data also highlights Hong Kong millennials’ high level of risk tolerance when investing compared to other age groups. 47% have actively invested in light of the pandemic, significantly more than both younger baby-boomers (35%) and older baby boomers (13%). This shows Hong Kong millennials are less risk averse than other age groups and are more focused on investment returns.
Leo Chen, Managing Director – Head of Asia at Calastone comments on the data:
“The clear appetite of Hong Kong investors is encouraging to see. They demonstrate greater financial literacy and sophistication compared with investors in other markets as they look for opportunities amid the pandemic.
Hong Kong Millennials show they are more optimistic than other age groups, focused on profiting from the market low and generating a return. We hope this proactivity will keep the market moving forwards as uncertainty shows no sign of abating, with Hong Kong now tackling its third wave of COVID-19 infections.”
Calastone surveyed 1,800 respondents, encompassing a sample size of 300 each for six key geographies – spanning the UK, USA, Germany, Hong Kong, Australia and New Zealand. Included within each region surveyed, more than half the respondents were proactive investors, having previously made active investment decisions to buy or sell into the market. The ages of those surveyed ranged across age bands from 24 to 70. Millennials are defined as anyone aged 24-39, Generation X are 40-55, Younger Baby Boomers are 56-65 and Older Baby Boomers are 66-70.
Please refer to the release linked here for global survey results.