Investor Presentaiton slide image

Investor Presentaiton

Chart 9 - Market Share of Each Broker Size Group in Overseas Investor Trading in the Cash Market by Origin (2002/03) 100% 8 9 7 80% 47 54 60% 40% 46 20% 37 28 28 41 30 64 25 58 20 77 41 27 52 11 18 59 71 22 34 15 18 14 0% UK Rest of US Asia Japan Europe Large-sized brokers Mainland China Medium-sized brokers Taiwan Singapore * Rest of Asia* Others ** Small-sized brokers * Singapore was added in the 2002/03 survey as a designated origin for the first time, being included in the rest of Asia in previous surveys. ** Includes Australia, British Virgin Islands, Canada, New Zealand, Cayman Islands and Africa. Note: Numbers may not add up to 100 per cent due to rounding. Source: CMTS How To Increase Investor Participation21 Knowledge is a major barrier to retail investors. 57. Apart from financial constraints, over the years lack of knowledge remains the major reason for not investing in stocks or derivatives. This may suggest that education of the public in the past few years might not be sufficient or that non- investors are simply not receptive to investment information. Education in investment concepts and personal financial management might be more effective if it is done as a programmed syllabus starting at school. Moreover, more and better investment knowledge will not only help increase retail investor participation but also the quality of their investment decisions and hence help contribute to the improvement of the overall market quality. Mass media would be the best channel for retail investor marketing/education. 58. According to the SFC-RIS, television is considered the best channel by retail investors for delivering investor education information (chosen by 69%), followed by newspapers (47%) and radio (37%). Besides mass media, the Internet (36%) is also good, followed by seminars (20%) and public transportation (20%). It is believed that a multi-tiered approach would be beneficial this could on the one hand attract attention of the public via mass 21 Readers may refer to an earlier research paper done by R&P, “Increasing investor participation: insights from HKEx surveys", which was published in the SFC Bulletin, July 2002.
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