HK investors opt to build cash reserves, lock in gains rather than hold, survey finds

Hong Kong investors are taking a more conservative approach in volatile markets, with 40 percent increasing cash savings and many preferring to lock in gains when markets rise, according to a survey by investment manager Fidelity International.

The survey polled more than 6,500 retail investors in mainland China, Hong Kong, Taiwan, Singapore, Japan, and Australia, examining how they are navigating turbulent conditions and positioning themselves to achieve their financial goals.

While most recognize the importance of staying invested for the long term, many are adopting a more cautious stance. Forty percent of Hong Kong respondents have increased their cash savings amid 2025’s uncertain environment. About 30 percent increased investments, while 24 percent reduced their exposure, citing persistent volatility and weakened confidence.

Financial independence and retirement savings emerged as the top goals for Hong Kong investors, indicated by 61 and 59 percent of respondents respectively. But only 53 percent are confident in reaching these objectives.

Despite the long-term nature of these goals, 55 percent of Hong Kong investors said their main investment horizon was less than three years. Their expected annual return of 7.4 percent was also more conservative than the Asia-Pacific average of 8.1 percent.

When asked how they would allocate a hypothetical windfall equivalent to one year’s salary, Hong Kong respondents said they would spend only an average of 18 percent on consumption. The remaining share would be directed to savings, investments, or debt repayment, with cash and investments each accounting for roughly one third, in line with the approach of Asia-Pacific investors overall.

When faced with a 10 percent gain in a single day, 57 percent of Asia-Pacific investors said they would hold, while 31 percent said they would sell to lock in profits. Regional differences stood out, with 72 percent of investors in Japan and 60 percent in Singapore most likely to hold, while 41 percent of those in mainland China and Hong Kong said they would take profits.

STAFF REPORTER