Seven in 10 Hong Kongers lose money on bad investments

Only 9% read important financial documents during research.

One in three or 31% Hong Kong investors believe they had invested in an unsuitable product within the past 12 months, the Retail Investor Survey revealed.

According to the Hong Kong Investor Education Centre (IEC), this caused 65% of participants to say that they lost money after the investment.

Whilst almost 90% have claimed to research before investing, only 9% read important financial documents.

Most rely on advice from friends and family, IEC said.

IEC general manager David Kneebone said, "Hong Kong people are open to investing, and the vast majority of investors understand that it is vital to do research in order to make an informed decision. Yet, a portion of investors regret the choices they have made."

Despite the lack of research, investors expect a return on investment (ROI) rate of 17% per annum. About 47% expected a return between 10% to 20% per annum, and 32% wanted to see a return of 20% or more.