Hong Kong’s rich investors seek more risk for more returns

About 1 in 3 investors said that their current investment returns have room to grow

Over 3 in 5 (62%) high net worth (HNW) investors in Hong Kong intend to allocate more to private market strategies and hedge funds in 2024, according to a study by Singapore-headquartered digital wealth platform Endowus and YouGov Singapore.

The study surveyed 226 individuals in Hong Kong between February to March 2024 who have an annual income of at least HK$1.8m and above and personal investable assets of at least HK$12m as well as financial assets of HK$6m and above.

Over 2 in 5 (41%) of the HNW investors surveyed said that they are willing to take some risk to grow their capital meaningfully, whilst 1 in 5 (26%) indicated an appetite for greater risk to maximise returns.

This comes amidst dissatisfaction with existing portfolio returns. About 1 in 3 (33%) investors expressed that their returns “have room to grow,” the study found.

A greater concern for Hong Kong investors is the lack of greater diversification in their investment portfolios (36%) followed by the high fees eating into their overall returns (33%).

Hong Kong HNW investors’ other top concerns indicate a longer-term view. Almost 1 in 3 (32%) expressed worries regarding their retirement and are proactively thinking of succession planning (35%). 

Outside of HNW investors, Hong Kong citizens at large have been proactive with money management. A separate survey found that almost 1 in 2 adults in the city are actively trying to go against their parents’ bad financial habits.