A survey conducted by Hong Kong Exchanges and Clearing Limited (HKEx) between November and December 2000 found that 21 per cent of Hong Kongs adult population were stock investors (defined as those who held or had traded Hong Kong listed stocks including equities, warrants or Tracker Fund during the previous 12 months) and 19 per cent were shareowners (defined as those who held stocks at the time of the survey). These percentages represent approximately 1.1 million stock investors and one million shareowners.

The proportion of stock investors increased from 16% in the previous survey in 1999. This may be due to the offer of Tracker Fund shares in 1999 and MTRC shares in 2000, which attracted a large number of new investors. The survey also found trading frequency increased, with the typical stock investor conducting an average of five transactions in the past 12 months, compared with three transactions in the 12 months before the 1999 survey.

This years survey was the first to cover Internet trading by stock investors. Seven per cent of those who traded during the past 12 months placed orders via the Internet including 2% who had placed all their orders via the Internet. Frequent traders used the Internet most.

The typical Hong Kong retail stock investor is a 37 year old white collar worker with a monthly income of about HK$16,250, according to the survey. The proportion of male stock investors was 52 per cent, similar to the 1999 survey. The findings also show stock investors are generally better educated and more likely to be employed in a professional occupation than non-stock investors. Thirty-five per cent of stock investors had received post-secondary education and 21 per cent were professionals, executives, proprietors or traders.

In addition, the survey found that one per cent of Hong Kongs adult population had held or traded Hong Kong derivative products (including futures or options) during the previous 12 months.

The 2000 survey, based on telephone interviews with 2,187 Hong Kong adults, was the first retail investor survey conducted by HKEx. It followed periodic retail investor surveys conducted by the Stock Exchange of Hong Kong, now a wholly-owned subsidiary of HKEx, between 1989 and 1999.

A full report of the Retail Participation in Hong Kong Stock & Derivatives Markets (2000) is available on the HKEx website (http://www.hkex.com.hk/ ).

Attached are findings of the survey presented in charts.