Offshore investors driving trading growth in HKEX securities market

March 7, 2016
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HONG KONG - The. Hong Kong Exchanges and Clearing Limited (HKEX) says increases in the value of overseas investor trading and Exchange Participants' (EPs’) principal trading underpinned strong growth in the value of all market trading on the Hong Kong Stock Exchange.

A Cash Market Transaction Survey for 2014/15 conducted by HKEX indicates that the contribution of investors outside Hong Kong to total trading in HKEX's securities market from October 2014 to September 2015 was steady at 39%, while their trading value increased by 71% from the previous 12-month period, compared to an increase of only 45% in trading value from local investors, whose market share fell to 39%. 

The value of EPs' principal trading increased by 124%, and its market share rose to 22%.

The survey also found that institutional investors (both local and overseas) contributed 51% of total trading in HKEX's securities market in 2014/15, down from 58% in 2013/14, while the contribution from retail investors (both local and overseas) was 27% (25% in 2013/14).

Among overseas institutional and retail investors, Mainland investors were the third largest contributors after UK and US investors. 

Mainland investors' contribution to the market's total trading increased to 9% from 5%.  Together with UK and US investors, they accounted for about 28% of all trading. 

The value of Mainland investors' trading grew by more than 185% on-year from a small base, reflecting, to a certain extent, the launch of Shanghai-Hong Kong Stock Connect (Stock Connect) in November 2014.

The survey found that overseas institutional investors had the biggest share of trading among the four investor types (local/overseas and retail/institutional), contributing 31% of total market turnover, down from 34% in 2013/14.
 
Local institutional investors contributed 19% to total market turnover, down from 24% in 2013/14, while local retail investors also contributed 19% to total market turnover, compared to 20% in 2013/14. www.hkex.com.hk (ATI).