Hong Kong’s
retail investment landscape is witnessing a visible transformation. The market
has recorded 50,000 previously dormant trading accounts springing back to life,
marking a decisive shift in investor sentiment. This revival represents a 3%
increase in total retail online investors and successfully breaks a three-year
declining trend.

Hong Kong’s Online Trading
Market Shows Recovery as AI Adoption Surges

The
resurgence coincides with a growing embrace of artificial intelligence (AI )
tools among local investors. Current data shows that 17% of traders are already
leveraging AI-powered solutions in their investment decisions. More
significantly, an additional 43% of investors have expressed keen interest in
incorporating these technologies into their trading strategies.

Despite
maintaining its position as the largest market for international share trading
among studied regions, Hong
Kong investors display a notable confidence gap. Local traders report the
lowest confidence levels compared to their global counterparts, with only
one-sixth considering themselves proficient in trading activities. The majority
still identify themselves as novices or beginners in the investment landscape.

“AI is
redefining the retail online investing experience in Hong Kong,” says
Lorenzo Vignati, Associate Director at Investment Trends.
“It’s empowering investors to overcome confidence gaps, signaling the rise
of a more informed and proactive investor base.”

The
integration of AI tools appears to be addressing this confidence deficit. Early
adopters report enhanced decision-making capabilities and improved market
analysis, suggesting a potential shift in investor sophistication levels in the
coming months.

Market Dynamics and Mobile-First
Evolution

The total
number of unique individual traders, those who made at least one transaction in
the past 12 months, reached 865,000 in 2024, higher
from 2023, but down from the pandemic peak of 960,000. During the reported
period, the number of new investors exceeded 100,000. Meanwhile, dormant
clients saw the largest increase, reaching 96,000—the highest value since 2021.

A
significant transformation is also occurring in broker selection criteria,
where mobile app functionality has emerged as the primary consideration,
superseding traditional factors like pricing. This shift reflects a broader
trend toward digital-first investing experiences, with investors increasingly
demanding sophisticated mobile platforms that offer advanced features and
seamless user experiences.

Reactivated
investors are not just returning to the market—they are doing so with a sharper
focus on aligning their strategies to shifting economic conditions,” commented
Vignati. “As they navigate evolving opportunities, these investors are
increasingly attuned to the dynamics of both the local and U.S. economies,
showcasing a more globally aware and strategic approach to investing.”

Investment
Trend recently published a report on another thriving Asian market, Singapore.
The number of unique active traders in the leveraged market there fell to its
lowest level since 2019, dropping to 38,000 out of a total base of 83,000.

International Trading
Leadership

Hong Kong’s
dominance in international share trading continues to strengthen, with over
half a million active participants. More than 20% of investors now utilize
specialist brokers, attracted by cost-effective access to U.S. markets and
enhanced trading platforms. This trend underscores Hong Kong’s role as a global
financial hub and its investors’ increasing sophistication in navigating
international markets.

“This
leadership position highlights the global outlook of Hong Kong online
investors,” noted Vignati. “Their willingness to embrace cost-efficient
platforms and diversify internationally demonstrates both their adaptability
and readiness to capitalise on global market opportunities.”

The report
also highlights a growing preference for diversified international portfolios,
with U.S. markets remaining a primary focus for Hong Kong investors. This
international outlook, combined with technological adoption, positions Hong
Kong’s retail trading community at the forefront of global market
participation.

Finance
Magnates reported
last week that the local Securities and Futures Commission introduced
a simplified licensing framework for virtual asset trading platforms (VATPs),
reflecting a notable development in the region’s evolving cryptocurrency
regulatory environment in recent months.