The Survey on Sale of Non-exchange Traded Investment Products released by the Securities and Futures Commission (SFC) today deals with licensed corporations selling mutual funds, corporate/sovereign bonds and other structured investment products to individual investors in Hong Kong during the 12 months ended 31 March 2012.
The SFC has conducted the survey to understand the overall market structure and identify the major types of investment products sold by different types of licensed corporations. The information collected facilitates the SFC to supervise selling practices of licensed corporations.
The survey shows:
- a total of 187 licensed corporations, including investment advisors, asset management firms, brokers and international financial conglomerates, sold investment products to 54,675 clients for an aggregate transaction amount of about $584 billion (Note 1);
- the top 10 firms accounted for 82% of the aggregate transaction amount, acting as major issuers;
- structured investment products were mostly sold by international financial conglomerates while other firms sold unit trusts, mutual funds and other collective investment schemes as well as fixed-income products.
A total of 1,380 licensed corporations participated in the survey, representing a response rate of 97%. Banks, which also sell such products, were not included in the survey.
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Note:
- "Transaction amount" refers to the amount paid or payable by investors for investment products. For leveraged products, the transaction amount represents the maximum exposure of contracts. In this survey, licensed corporations were requested to report only one-sided transactions. Transaction amounts of rollover, redemption, and close-out positions were excluded.