The joint investigation by the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority shows a strong rebound in the sales of investment products in 2023.

On September 20th, a joint investigation by the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority on the non-exchange-traded investment product sales activities of licensed corporations and registered institutions showed that the total trading volume increased from HK$3.799 trillion in 2022 to HK$4.338 trillion in 2023, a growth of 14%. The surveyed companies believe that with the market recovering from the pandemic, inflation pressures easing, and expectations of major economies ending their monetary tightening cycles, the overall market sentiment in 2023 has improved. In this context, the number of companies engaging in investment product sales increased from 371 in 2022 to 380 in 2023. About 68% of companies reported an annual increase in trading volume, while about 29% of companies expanded their sales teams by 50% or more to meet the growing business needs. The number of clients participating in trading also increased by 15% to over 940,000. Sales of investment products recorded steady growth, mainly due to the sales growth of collective investment schemes, debt securities, and structured products by HK$394 billion, HK$80 billion, and HK$59 billion respectively. According to the survey, sales of money market funds increased in 2023, with their share of the total trading volume of the top five collective investment schemes reported by large companies rising from 61% in 2022 to 76%. Sales of sovereign bonds also saw an increase, with their share of the total trading volume of debt securities sold rising from 29% in 2022 to 44% in 2023. The popularity of money market funds and sovereign bonds increased, reflecting investors' preference for lower-risk and more stable products in a high-interest environment. In 2023, structured products remained the most sold product category among the surveyed companies, accounting for 46% of the total trading volume (HK$1.98 trillion). Collective investment schemes and debt securities also ranked in the top three, accounting for 29% (HK$1.278 trillion) and 17% (HK$728 billion) respectively. The trading volume of equity-linked products was HK$1.206 trillion, accounting for 61% of all structured products sold in 2023, higher than 53% in 2022. Among the top five products sold by large companies, the related stocks were mainly from the internet (29%), automotive (27%), and technology (20%) industries. The distribution of investment products via online platforms is on the rise. In 2023, the number of companies distributing investment products online increased to 92, up 11% from 83 in 2022. Online sales accounted for 12% of the total trading volume of all surveyed companies, compared to 7% in 2022. Collective investment schemes accounted for 72% of online sales, followed by debt securities at 25%. Dr. Thomas Ot speaks, Director of the Intermediary Supervision Department of the Hong Kong Securities and Futures Commission, said: "The survey results reflect the significant recovery of the investment market in Hong Kong, demonstrating the resilience of the securities industry; multiple product categories also saw growth, showing that the industry can adapt to the needs of investors. The Hong Kong Securities and Futures Commission will continue to spare no effort to promote the stability and growth of the financial market while ensuring the protection of investors' interests." Mr. Eddie Yu, Assistant Director (Banking Conduct) of the Hong Kong Monetary Authority, said: "The survey shows that sales of a wide range of product categories are on the rise, and investor participation in the Hong Kong investment market has also increased, reflecting the recovery of the investment market and renewed interest from investors in 2023. The survey also provides valuable insights for regulatory authorities in formulating policies and conducting work related to investor protection."