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HK people unacquainted with forex: survey
Updated: 2004-04-23 14:40

A recent Survey shows that Hong Kong people are not acquaint with forex as investment tool, only 4 percent of the general public has participated in leveraged forex trading as a lot of people have concerns of the risks involved.

The financial multi-media services providers HK6 holdings limited and international accountants Grant Thornton announced the results of the joint survey Thursday.

The survey points to considerable demand for foreign exchange among Hong Kong citizens, who had an average account balance over HK$210,000. Australian dollar, US dollar, British pound, Canadian dollar, Euro and New Zealand dollar were six most popular foreign currency accounts held by Hong Kong citizens.

About 32 percent of survey respondents said they held such accounts mainly to enjoy high interest rates, and 24 percent to hedge their exposure on genuine foreign currency requirements, only 4 percent said they had participated in leveraged forex trading.

"Hong Kong is still a nascent market in the sense that most people are not acquainted with the investment and hedging tools available," said Kenny Tang, a consultant of HK6.

Stephen Weatherseed, partner of Grant Thornton, noted that forex investments can be better promoted in Hong Kong with increased media coverage, incorporation of stop-loss mechanisms, reduced deposit requirements and narrower buy/sell margins.

The survey also show that telephone dealing was the most popular mode in trading foreign currencies, followed by counter and online trading.

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