A tidal wave of enthusiasm has swept through Hong Kong and mainland China’s stock markets, with a staggering $1.8 trillion in gains sparking a frenzy of activity among young investors. In a bid to capitalize on the rally, many have flocked to online trading platforms and brick-and-mortar brokerages to open new accounts, eager to get in on the action.
However, the sudden influx of users has put a strain on some online platforms, leaving would-be traders frustrated and unable to open accounts. Undeterred, many have turned to traditional brokerages, where they’ve found the process to be quicker and more efficient with the help of staff.
Industry insiders note that it’s unusual to see young investors, typically accustomed to online trading, venturing into physical branches to open new accounts. “The market rally has piqued the interest of youngsters who want to join the game, as well as dormant investors returning to the market,” said Tom Chan Pak-lam, permanent honorary president of the Institute of Securities Dealers.
The Hang Seng Index’s impressive 18% surge in September, its best month since November 2022, has fueled the excitement. As the market continues to soar, it’s likely that even more investors will open stock accounts to trade shares.
Online brokerages like Tiger Brokers (HK) and Futu have seen a significant spike in new account openings, with a disproportionate number of young investors under 30 driving the trend. The number of active users on Tiger’s mobile app has risen by 10%, while Futu’s online platform has witnessed a 95% jump in trading volume and a 60% increase in investors.
Mainland tech giants like Tencent Holdings, Meituan, Xiaomi, and Alibaba Group Holding have been among the most sought-after stocks, with many investors looking to sell shares purchased at higher prices in the past. As the market continues to rally, it’s clear that the enthusiasm among young investors is here to stay.
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