Hong Kong investors hoarding cash

Seven in ten said they intend to amass more cash to see them safely through the economic crisis.

The HSBC Hong Kong Wealth Tracker survey based on interviews of some 1,600 individuals aged between 18 and 65 showed that on average, Hong Kong investors keep 60% of their liquid assets in cash while 77% said they intend to accumulate more cash compared to only 61% who had the same goal last year.

The survey also showed that one in five Hong Kong investors saw their net worth decrease over the past six months to June. It revealed that many Hong Kong investors have become more cautious in their investments.

Of investors surveyed, 43% said they are preparing for retirement while 41% said they were fighting inflation. HSBC said the results revealed that investors in general lack confidence to invest in the market because of continued economic uncertainty arising from various global events, such as the Euro crisis, weak US growth and Hong Kong’s slumping economy.