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HK's Online Stock Trading Rises Sharply: Survey
Hong Kong has registered a two to three fold increase in the number of online brokers, as well as the number of clients accounts and online trading transaction in a seven-month period ending April this year, according to the latest survey published by the Hong Kong Securities and Futures Commission (SFC) Wednesday.
Of the 844 registered stock dealers in Hong Kong, 28 are providing online trading facilities, with a total of 37,382 online trading accounts, compared to the only 10 online brokers and 8,876 accounts when the previous survey was carried out last September.
The survey also says that another 242 dealers indicated an intention to launch online trading facilities within the next 12 months. Most online brokers are participants of the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange.
Among the existing online brokers, 22 are providing online trading facilities in Hong Kong listed securities, two in overseas, predominantly the United States, listed securities, two in both Hong Kong and overseas securities and two in futures contracts.
The survey indicates that Hong Kong's online trading is still in its infancy with the turnover constituting 1.3 percent of the total market volume for Hong Kong securities, while online brokers representing less than 4 percent of the total number of registered dealers.
Andrew Procter, executive director of the Intermediaries and Investment Products Division of the SFC, said the use of the Internet by Hong Kong brokers is growing very fast, and the wide choice of services on offer is good for investors and good for the industry.
He pledged that the regulation of the industry will facilitate that growth. "We want investors to be protected and we want to assist brokers to understand the new challenges especially in the areas of Internet security and systems development and maintenance, " he added.
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