Hong Kong investor confidence has surged to a record high amid a bullish market, with over 60 percent of retail investors planning to increase their investments in the city's stocks, according to a joint survey by Bright Smart Securities (1428) and the Hong Kong Polytechnic University.
The survey revealed that most investors have reaped significant profits this year. Specifically, 41 percent of respondents reported an average return of 10 percent to 30 percent, while 9 percent achieved gains exceeding 30 percent.
The Investor Confidence Index jumped sharply from 69 to 117, breaking its previous historical peak.
In light of the bullish market, 62 percent of investors intend to inject more capital. Additionally, 28 percent indicated they would "buy the dip" if the Hang Seng Index retreats to 21,000 points.
Among the sectors, 96 percent of respondents are optimistic about technology stocks, followed by AI-concept stocks’ 74 percent. In contrast, retail and property sectors are viewed less favorably.
Regarding market prospects, 78 percent believe Sino-US trade tensions will impact Hong Kong stocks, while 48 percent consider mainland China's economic stimulus policies a key factor.
PolyU associate professor Zhao Jing noted that the U.S. Federal Reserve's interest rate cut cycle bodes well for Hong Kong's stock and property markets. She added that US-led global tariff wars are reshaping trade patterns by forcing countries to recalibrate exports.
With AI boosting productivity across industries and Hong Kong's recent passage of a stablecoin bill, Zhao believes global macroeconomics has entered a new chapter, setting the stage for steady growth in local stocks.
Bright Smart chief executive Hui Yik-bun cautioned that uncertainties in Sino-US trade negotiations could bring volatility to strategic sectors like high-tech, chips, and AI. He advised investors to avoid overexposure in the current political climate, preserve profits, and adopt a wait-and-see approach.
