Hong Kong SFC’s Committee on Investor Education: Transactions or Contracts in Prediction Markets Are Not Investment Products

Odaily reported that the Committee on Investor Education under the Hong Kong Securities and Futures Commission (SFC) issued an article titled "Understanding the Essence of Investment Through Prediction Markets," which points out: Prediction markets are a type of speculative market established for the purpose of making predictions. The trading activities or contracts in prediction markets are not investment products. Their main characteristics include: foreseeable events, trading operations, trading prices, and returns. Before considering any investment, investors should carefully evaluate the value of the investment, asset allocation, and regulatory protections.

The Hong Kong Committee on Investor Education stated that the public engaging in trading activities in prediction markets will not receive the protection provided under the Securities and Futures Ordinance or any regulations enforced by the Hong Kong Securities and Futures Commission. Should issues arise, it may be difficult or even impossible to seek recourse.