The Hong Kong Investment Funds Association (HKIFA) published data on Wednesday which cited a sharp fall in funds to $3.71bn (£2.38bn, €3.34bn).
Bruno Lee, the chairman of HKIFA, blamed the decrease in sales on global market uncertainty, particularly around China mainland’s A-Share market, the Greek debt crisis, and the potential US interest rate rise. He said volatility in the global currency market was also to blame.
“Retail investors should review their investment position regularly to ensure their investment strategy is aligned with their long-term personal financial objective and seek for professional investment advice if needed,” Lee said.
Higher risk appetite
Though net sales fell dramatically, gross sales saw a rise of 14% to $47bn in the first half of 2015, after hovering at $7bn in the first quarter, soaring up by more than $10bn in April, and then dropping back to $7bn towards the end of the second quarter.
HKIFA said China-related and European equity funds were the key sectors which contributed to the surge in gross sales in the second quarter of this year.
“The moderate growth in gross retail fund sales and higher equity fund sales percentage indicate a higher risk appetite amongst retail investors,” said Lee.
HKIFA members are comprised of 82 fund management companies. It also has 43 associate members, including lawyers, accountants, trustees and other professionals that are involved in the creation and administration of funds.