Hong Kong Explores Long-Term Investment Opportunities in Digital Economy

The Hong Kong Institute for Monetary and Financial Research (HKIMR), part of the Hong Kong Academy of Finance (AoF), has released a pivotal report titled “Long-term Investing in Hong Kong: Developments and Opportunities in a Digital Economy.” This report delves into the intricacies of Hong Kong’s investing landscape amid the evolving digital economy, as reported by the Hong Kong Monetary Authority.

Key Survey Findings

The report, building upon prior research by the HKIMR on demographic changes and asset markets, incorporates insights from two comprehensive surveys. One survey, conducted with the Investor and Financial Education Council, assessed Hong Kong residents’ investment decisions. Another survey, in collaboration with a consulting firm, gathered perspectives from local market participants on product development and technology adoption.

Findings reveal that while Hong Kong residents possess strong foundational financial knowledge, there is a significant need for increased awareness of financial products related to long-term investing. Despite having a wide array of globally competitive accumulation products, 67% of market participants identified a gap in decumulation product options, which are essential for effective long-term financial planning.

Digital Adoption and Future Directions

The study also highlights the high level of digital adoption among the surveyed groups. Notably, 72% of residents reported using digital financial services in the past year. Furthermore, about 70% of market participants are either currently adopting or planning to adopt mobile and web platforms to distribute long-term financial products. These findings suggest a strong trend towards embracing digital solutions to enhance financial product distribution and cost efficiency.

To fortify Hong Kong’s long-term investment ecosystem, the report advocates for the adoption of frontier technologies. This approach aims to drive innovation in product and service offerings, thereby supporting more effective long-term investing and financial planning.

The Significance of Long-Term Investment

Enoch Fung, CEO of the AoF and Executive Director of the HKIMR, emphasized the importance of prioritizing long-term investing in light of the ongoing trend of population ageing. He noted that the insights from the report are instrumental for market participants in navigating challenges and seizing business opportunities that contribute to a robust investment ecosystem in Hong Kong.

The full report can be accessed on the AoF/HKIMR website.

About HKIMR and AoF

The Hong Kong Institute for Monetary and Financial Research (HKIMR), as the research arm of the AoF, focuses on monetary policy, banking, and finance research critical to Hong Kong and the Asia region. The AoF, established with cooperation from key financial regulatory bodies, serves as a center of excellence for financial leadership development and a repository of monetary and financial research.

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