October 17th, 2022, Samuel Tan
Interest in non-fungible tokens (NFTs) – unique digital identifiers recorded in a blockchain that has made verifiable ownership of digital art possible – in Hong Kong is higher than ever.
Celebrities of all ages, from emerging singer Gigi Yim to auteur filmmaker Wong Kar Wai, have launched their own NFT-minted art works. Banking giant HSBC has partnered with shopping mall K11 Musea to launch an NFT exhibition showcasing more than 200 art pieces from 30 artists across the retail development’s nine floors. Even Hong Kong’s newspaper of record, the South China Morning Post, is spinning off its NFT business as a separate company.
But how popular have NFTs become among investors in Hong Kong – how does interest in NFT investing vary across age, gender and region? And what are the reasons driving and discouraging investment in NFTs in Hong Kong?
Who in Hong Kong intends to invest in NFTs in the next 12 months?
Latest RealTime Omnibus research by YouGov reveals that, among Hong Kong residents who intend to make financial investments in the next 12 months, one in eight are looking to invest in NFTs (12%).
Notably, among various investment vehicles, NFTs attracted the second highest interest – after Hong Kong stocks (56%), but ahead of traditional vehicles like United States stocks (8%) and structured products (2%).
Unsurprisingly, interest in NFT investing is higher among younger consumers – Gen Z (16%) and Millennials (17%) – who tend to be more digitally savvy than older consumers – Gen X (13%) and Baby Boomers (2%).
Among younger consumers, men also tend to be more interested in NFT investing than women – Gen Z (Males: 22% vs Females: 12%) and Millennials (Males: 20% vs Females: 14%). But this pattern is reversed for Gen X, where a higher proportion of women compared to men are keen in investing in NFTs in the next 12 months (14% vs 11%). For Baby Boomers, interest in NFT investing is similarly low across both genders (2%).
Comparing regions within Hong Kong, investors who reside on Hong Kong Island have the highest interest in NFT investing (17%), ahead of investors residing in the New Territories (11%) followed by Kowloon (9%).
What reasons drive Hong Kong residents to invest in NFTs?
When Hong Kong residents who invested in NFTs in the past 12 months were asked about the reasons which led them to do so, more than half indicated NFT launches by their favourite brands as a relevant reason (53%).
- The next most popular reasons – indicated by over two in five – are reading about NFTs on social media such as Reddit, Twitter and Facebook (46%), learning that family/friends have made money trading NFTs (46%) and reading about NFTs in offline news such as printed newspapers and TV programs (42%).
- Other relevant reasons include reading about NFTs in online news such as news websites (38%), foreign governments accepting NFTs as legal tender (31%), and their favourite celebrities launching their own NFTs (28%).
However, when asked to select the top reason that led them to invest in NFTs, learning that family/friends have made money trading NFTs (21%) came out tops, with more than one in five saying so.
- The next most crucial reasons are reading about NFTs on social media (17%) and offline news streams (15%), as well as NFT launches by favourite brands (15%).
- This was followed by reading about NFTs in online news (13%), foreign governments accepting NFTs as legal tender (11%), and their favourite celebrities launching their own NFTs (8%).
What reasons keep Hong Kong residents from investing in NFTs?
When Hong Kong residents who did NOT invest in NFTs in the past 12 months were asked about the reasons deterring them from doing so, nearly three in five indicated the need to further observe this relatively new investment vehicle as a relevant reason (59%).
- The next most popular reasons – indicated by over two in five – are not understanding how NFTs work (48%), too much fluctuation in NFT prices (45%).
- Other relevant reasons include being unsure about which NFT trading platform to use (39%), believing it is not a good time to enter the NFT market right now (34%), NFTs not being encouraged by local government (21%).
When asked to select the top reason that discouraged them from investing in NFTs, needing to further observe this relatively new investment vehicle remained the most popular reason, with more than one in four saying so (29%).
- More than one-fifth say not understanding how NFTs work (23%) is the top reason, while over one-sixth point to excessive fluctuation in NFT prices (17%).
- Just over one in ten also cite being unsure about which NFT trading platform to use (11%), believing it is not a good time to enter the NFT market right now (11%) as their top reason for not investing in NFTs so far.
This is Part 1 of our two-part series on NFT investing sentiments in Hong Kong. In Part 2, we explore investor attitudes towards NFT trading platforms: what factors do Hong Kongers consider when choosing one, which platforms do they most trust, and which are they likely to use? Read our follow-up article here.
Make smarter business decisions with better intelligence. Understand exactly what your audience is thinking by leveraging our panel of 20 million+ members. Speak with us today.
- To receive monthly insights about the financial services industry register here.
- To read YouGov’s latest intelligence on the finance industry explore here.
Methodology: YouGov RealTime Omnibus provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online from 8 September to 4 October 2022, with an online representative sample of 2,307 adults in Hong Kong (aged 16+ years), using a questionnaire designed by YouGov. Data figures have been weighted by age and gender to be representative of the adult online population in Hong Kong (16 years or older), and reflect the latest Hong Kong Census and Statistics Department (C&SD) population estimates. Learn more about YouGov RealTime Omnibus.