The market has not lacked winners this year as risk assets and safe havens alike have taken turns racking up gains while the global economy see-sawed between signs of recovery and fears of relapse.
The one constant this year has been that cash is trash. Minuscule interest rates combined with rising inflation have eroded the value of money left in the bank. And Hongkongers have had to bear the additional burden of holding a currency fixed to the sinking US dollar.
'Right now, holding cash is painful,' said Ricky Tam Siu-hing, the chairman of the Hong Kong Institute of Investors. 'You have to buy something that can maintain its value.'
That has encouraged investors to take bets and play the market. Buying interest also surged since September when the US central bank indicated it was sticking to its loose monetary policy. Daily trading turnover on the Hong Kong stock market has topped the HK$100 billion threshold 17 times since the start of September after doing so only once in the first eight months of the year. The inflow of liquidity has chased traditional investments like stocks and property.
Investments in the yuan have also picked up as Hong Kong expanded its role as the mainland's overseas currency settlement centre.
Meanwhile, gold has regained its lustre. The precious metal has appreciated largely because investors have been looking to reduce exposure to the US dollar, which has weakened 9.5 per cent so far this year up to Thursday against the Japanese yen.
The sliding value of the greenback has also been a boon to tangible assets like wine and fine art. Demand has picked up as well for these and other luxuries amid a growing wealth effect in the region.
