Hong Kong retail investors turn to ETFs for long-term wealth building, survey finds

A recent survey conducted by BlackRock’s iShares reveals that Hong Kong retail investors are increasingly turning to exchange-traded funds (ETFs) for long-term wealth building. Nearly half of the 2,007 Hong Kong adults surveyed plan to start investing in ETFs or increase their exposure within the next year. This puts Hong Kong second in the Asia-Pacific market rankings for ETF ownership, trailing only Australia.

The surge in retail participation is fueled by a booming trading market in Hong Kong, driven by expanded investment links with mainland China under the Stock Connect scheme and a broader array of listed products. Hong Kong-listed ETFs saw an average daily turnover of HK$39.8 billion (US$5.07 billion) in the first eight months of 2026, marking an 18% increase compared to the same period in 2025, according to data from the Hong Kong Exchanges and Clearing.

Nicholas Peach, BlackRock’s head of iShares for the Asia-Pacific region, explains that local retail investors are increasingly incorporating ETFs into their long-term investment strategies rather than merely seeking short-term market exposure. "We see the same shift across the Asia Pacific, as greater choice, easier access and a deeper understanding of how ETFs can support their goals become more widely recognized," Peach shares.

The survey also highlights that 88% of current ETF holders in Hong Kong have accumulated assets valued at less than HK$6 million, indicating that ETF ownership is expanding beyond high-net-worth individuals. Over three-quarters of ETF participants reported using monthly investment plans, a pattern often instilled through Hong Kong's Mandatory Provident Fund retirement scheme.

Additionally, 69% expressed interest in goal-based investing. Traditional equity and fixed-income strategies still form the backbone of most portfolios in Hong Kong, yet demand for actively managed, income-focused, and thematic products is surging, with purchase intentions exceeding current ownership rates.

Despite this growth, the rapid launch of specialized ETF products has presented challenges. More than half of the respondents called for clearer, simpler explanations of the products, while 37% found it difficult to compare the offerings. Andy Ng, BlackRock’s head of APAC iShares Equity Product Strategy, emphasizes the need for providers to offer better explanations of their products to help investors understand their purpose and how they fit into their portfolios.