A recent Standard Chartered survey unveiled Hong Kong investors to be one of the most impulsive, speculative and biggest believers of luck which are not perfect attributes for a crisis.
Hong Kongers were mostly classified as «Enthusiastic Investors» (40 percent), characterized as having moderate exposure with the lowest belief that they controlled their own destiny and luck and preferred to set aside a portion of wealth to «satisfy their impulse for speculative investments».
In contrast, Singaporeans were mostly labeled as «Comfortable Investors» (47 percent), due to high composure especially during more turbulent times. In addition, the report also highlighted this group as having more investment experience, greater desire to leave behind a positive legacy and more likely to be a male.
Despite the differences, Asia broadly demonstrated greater appetite for speculation and risk for its own sake in deep contrast with Europe where consistently low-risk appetite is exhibited.
Fit for Crisis
Whilst Hong Kongers may fare better during bull markets, reaping the rewards of riskier behavior, crisis will not be favorable for such investor types not only to avoid losses but also to opportunistically capture returns.
«Our clients in Singapore have been measured in their investment approach especially during these volatile times,» said Sumeet Bhambri, ASEAN and South Asia head of wealth management at Standard Chartered Private Bank. «While some have expressed concern about their investments, we have also seen a steady increase in investment activity with the valuations of several risk assets turning more attractive.»
«We are combining behavioral insights with emerging technologies to build innovative tools to deliver a more personalized investment experience to our clients, from the choice of investment products, to how and when they receive information on their portfolio performance,» added Alexis Calla, Standard Chartered Private Bank’s chief investment officer.
