Despite stocks being the most popular financial products among women in Hong Kong, they prioritize lower-risk asset options overall, with the top three allocation compositions being cash savings ( 26% ), term deposit ( 22% ) and stocks ( 19% ), according to a recent study.

Most women in Hong Kong are investing for long-term capital accumulation ( 56% ), followed by regular income generation ( 26% ), finds global asset manager Fidelity International’s Asia-Pacific Investor Study. A similar pattern is seen with men, with a higher proportion ( 65% ) mainly investing for long-term capital accumulation.

Lack of confidence

Women in Hong Kong are taking a long-term approach with their investment and financial goals. Notably, 43% of women in Hong Kong have an investment horizon of 5 years, the study points out, and 40% of women in Hong Kong have started retirement planning, both the highest proportion among women in Asia-Pacific surveyed markets.

However, women, the study adds, are more likely to increase their saving over investment or pension contribution. This implies they are missing opportunities, as time in the market is an important factor for capital accumulation.

With uncertainties in the external environment, women in Hong Kong, the study suggests, are more likely to take a more cautious approach in investing, whereas men in Hong Kong tend to embrace the opportunities to invest more aggressively.

Also, the main reasons women may invest less, the study suggests, are a lack of confidence due to market volatility and in making investment decisions.

Retirement goals

Preparing for retirement is an important financial goal for many, the study shares, especially in a world where both inflation and life expectancy are an increasing trend.

With women having a longer life expectancy than men, the study suggests that women in Hong Kong also expect to retire earlier than men at 62 and to be able to spend an average of HK$24,235 monthly in retirement, which accounts for 67% of their current monthly income.

They also expect to be able to use their finances to cover daily costs ( 78% ), emergency medical treatment ( 68% ) and to afford leisure and travel ( 64% ). However, around half of women in Hong Kong are concerned about not having enough to support medical expenses ( 51% ), the entire retirement life ( 47% ) or to tackle long-term inflation ( 46% ).

With concerns of retirement income shortfall in mind, women in Hong Kong, the study notes, are considering both reducing expenses ( 42% ) and increasing their retirement pots through continued investing ( 41% ) and working part time ( 41% ) in retirement.

The majority ( 64% ) see having a monthly stable income as the top priority for post-retirement investing. A slightly lesser proportion ( 35% ) is considering increasing current saving plans to meet future retirement needs.

In Hong Kong, 52% of women participate in the labour force, compared with 64% of men. The median monthly income of women across industries is also lower than that of men.

“While they may have concerns about market fluctuations, volatility is inevitable when it comes to long-term investing, and it should be expected,” says Charlotte Chan, Fidelity’s head of HK global platform solutions and head of Hong Kong. “Having a diversified portfolio that aligns personal risk appetite and financial goals, and investing throughout market cycles, can help to capture the upward path most markets show over the long-term.”