The annual equity market survey by Hong Kong Exchanges and Clearing Ltd. (HKEx) for 2001 showed that the Hong Kong stock market continued to attract both local and overseas investors.

For the 12 months to 30 September 2001, local investors' market share in value terms was 56 per cent, while the market share of overseas investors, mainly institutions, was 40 per cent. There was a good balance between overseas institutions, with a market share of 38 per cent, local individuals (36 per cent) and local institutional investors (19 per cent). The remainder of the market was divided between Stock Exchange Participants trading for their own account (4 per cent) and overseas individuals (3 per cent).

The Cash Market Transaction Survey 2000/01 also reveals that, as in previous years, the United Kingdom and the United States were the two largest sources of stock market trading originating overseas. The UK represented 33 per cent of overseas turnover and the US represented 29 per cent. They were followed by Asian investors outside Hong Kong, who contributed 18 per cent of the overseas total.

In line with the contraction of market turnover from the exceptionally high turnover in 1999/2000, the value of all types of trades fell during 2000/01.

The survey also explored the popularity of online securities trading in Hong Kong. During the study period, online trading, which is mainly a retail service, increased from 2 per cent of local individual trading in 1999/2000 to 6 per cent in 2000/01.

The annual Transaction Survey has been conducted since 1991. For the 2000/01 survey, questionnaires were sent to a total of 480 Stock Exchange Participants, enquiring about the composition of their trading for the period from October 2000 to September 2001. The response rate was 96 per cent of the target group, and the respondents represented 98 per cent of the target group's turnover.

Full report of the Cash Market Transaction Survey 2000/01 will be available on the HKEx website (http://www.hkex.com.hk/eng/stat/research/cmts/cmtspi.htm).

Distribution of trading by type of trade in percentage (1991/92-2000/01)