Short-Term Gains Drive Majority of Hong Kong's Crypto Investors, Survey Finds

A recent study from the Department of Applied Social Sciences at Hong Kong Polytechnic University reveals that approximately 75% of surveyed investors in Hong Kong are primarily motivated by the pursuit of short-term returns in the virtual asset market. The survey also highlights concerns about missing out on potential investment opportunities and a strong belief in virtual assets as an ongoing investment trend among the majority of respondents.

Key Points:

1. Investor Motivations Unveiled
   The study exposes that the majority of virtual asset investors in Hong Kong (75%) are driven by the desire for short-term returns. Furthermore, 74% express confidence in the continuous upward trajectory of virtual assets as an investment trend, with 73% expressing concern about potential missed opportunities.
2. Behavioral Patterns Revealed
   The research delves into investor behavior, uncovering patterns such as a reliance on easily accessible information and a tendency to emphasize historical data, particularly initial offering prices. Overconfidence emerges as a common theme, with investors often overestimating their abilities and displaying unwarranted confidence in outperforming the market.
3. Cognitive Biases and Shortcuts
   Researchers identify five distinct thinking shortcuts associated with virtual asset investors, each linked to different cognitive biases. These include the "Following the Trend Type," the "Snake Bite Obedient Type," the "Own Experience Type," the "Intuition Expansion Type," and the "Wishful Thinking Type," contributing to diverse investment approaches and decision-making processes.

Investment Committee's Recommendations:

The "Retail Investor Research 2023" by the Investment Committee concludes with crucial recommendations applicable to all investors. Firstly, maintaining vigilance and actively protecting assets is advised. Secondly, a thorough understanding of product characteristics and risks is emphasized as a prerequisite for investment decisions. Lastly, careful investment practices, regular reviews, and reflections on personal investment behavior and attitude are underscored.

Understanding investor motivations and thinking patterns becomes imperative as virtual asset investments surge in Hong Kong. The study's insights provide a snapshot of the current landscape and serve as a valuable resource for investors aiming to balance risk and reward in this dynamic market.