About one-third of retail investors will make decisions about an investment based on information and tips they tap into on social media.
That is the massage being drawn from a survey by the Investor and Financial Education Council.
Of 1,004 respondents, almost half said they obtained information from various social media, though YouTube and online forums are the most popular, especially among younger investors.
Asked about their understanding of “ramp and dump” scams – fraudsters set up investment groups on social media and claim to offer stock tips or inside information to lure people into buying stocks at manipulated high prices – 52 percent of respondents aged below 30 said they had not heard about such scams. But two-thirds of all respondents said they are aware of them.
On a more regular footing, the Private Wealth Management Association expects the individual investor quota for the recently launched Cross-Boundary Wealth Management Connect to expand from 1 million yuan (HK$1.2 million) to 8 million yuan.
More wealth management products, such as index funds, can be included in the future, Amy Lo Choi-wan, chairman of the association suggested.
Lo also said she is confident the Wealth Management Connect scheme will become a major growth driver for the sector in Hong Kong.