World Investor Week 2024
Diversify Your Investment to Manage Risks
The market can be volatile and it is important for investors to manage their investment risks in the face of challenging times for the economic and financial market. Diversification of assets is one of the ways through which retail investors can consider.
Investors should avoid only investing in a single asset, industry, or market to avoid concentration risk. While Hong Kong investors are most familiar with stocks, there are also other investment products to choose from: bonds, funds, exchange-traded funds (ETFs) and Real Estate Investment Trusts (REITs), allowing investors to allocate their assets effectively.
Mainland China is an indispensable market for global asset allocation. The Stock Connect launched ten years ago marked the beginning of the integration of capital markets between the Mainland and Hong Kong. Over the years, this connection has grown even stronger. Today, Hong Kong investors can gain access to the Mainland capital market through various schemes and invest in A-shares, ETFs listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange, funds and wealth management products in the Mainland, as well as Renminbi (RMB) deposit products offered by banks in Mainland China, affording even more options for asset allocation.