New statistical data on investors collected via moomoo and Futubull highlights emerging investor behavior and trends including
The parent company of digital brokerage and wealth management platform moomoo, Futu Holdings Limited which serves nearly 20 million users, including more than three million clients, has released a whitepaper on investor behavior and trends emerging within the unique market conditions experienced throughout 2022.
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In response to heightened market volatility as a result of rising inflation pressures, constrained monetary policies, lingering concerns of coronavirus variants and geopolitical tensions, statistical research by Futu concluded that:
Key Findings –
1. Gen Z investors are the most risk-averse investors while Gen X group are the biggest risk-takers
The data showed a different appetite for risk among the three generations*.
Gen X group as the oldest generation, were the greatest risk-seekers as their stock position remained the highest among all three generations. Furthermore, their investing patterns slightly changed, with only 2.8% decrease in stock investment value to 89.4% on June 15, 2022, compared to December 31, 2021.
Counterintuitively, Gen Z group were the most risk-averse investors, and their equities investments significantly declined (-8.6%), from 85.3% on December 31, 2021, to 76.7% on June 15, 2022.
In aggregate, Gen Z investors allocated 14.9% and 7.7% of their positions to funds and bonds respectively, the highest level among all three generations. Gen X investors had only 8.4% and 1.8% of their positions to funds and bonds, respectively, the lowest of all three generations.
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2. Female investors’ investments are more diversified in 2022
Male and female investors* show similar investing patterns, with investments comprise mainly stocks (85%-92%), followed by funds.
Female HK investors tended to allocate more bonds into their portfolios. As at June 15, 2022, 5% of female HK clients’ investments are composed of bonds, which is 1.6% higher than male HK clients.
HK and SG female investors executed more options during H1 2022. The daily amount of stock options executed by HK and SG female investors increased 11% and 21% respectively, compared to H2 2021.
3. Investors increased their daily trading frequency but decreased weighting of stocks in the first half of 2022
Compared to the level at the end of 2021, investors from Hong Kong SAR, Singapore and US markets all recorded a decline in stock weighting, dropping 4.3%, 4.4% and 3% in HK, US and SG, respectively.
US investors opted to diversify their portfolios with fund products, with the proportion of fund value climbing to 13.2% in June 2022 from 8.8% in December 2021.
In terms of trading frequency, US investors traded 0.43 times per trading day, comparing to HK investors who traded 1 time per day and SG investors trading 0.35 times per day.
US investors’ average daily trading frequency jumped to 0.43 times in H1 2022, representing an increase of 26.5% from H2 2021’s 0.34 times. Investors from HK and SG executed 20.5% and 52.2% more trades in H1 2022 than H2 2021, respectively.
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