Hong Kong Investor and Financial Education Council: Male Virtual Asset Investors Prone to "Overconfident Risk-Taking," Women Easily "Cautiously Follow the Crowd"

Hong Kong Investor and Financial Education Council (IFEC) commissioned the Department of Applied Social Sciences of The Hong Kong Polytechnic University to conduct a tracking study, which shows that the herd behavior and emotional trading tendencies of Hong Kong virtual asset investors have significantly decreased compared to 2022. However, multiple behavioral biases remain prevalent, with the "cautious followers" type still accounting for the largest proportion of investors. The study surveyed approximately 1,000 virtual asset investors between November and December 2025, and the results were presented at the International Organization of Securities Commissions (IOSCO) Retail Investor Committee seminar in June 2026. The data indicates that among Hong Kong virtual asset investors, the score for blindly following market trends dropped from 3.63 to 3.19, while mimicking market behavior and chasing gains also decreased, suggesting that investment behavior has generally become more rational following the implementation of the virtual asset trading platform regulatory regime in 2023.

However, the study also points out that several behavioral biases remain significant, including reliance on past experience (3.86), FOMO sentiment (3.77), disposition effect (3.68), gambler's fallacy (3.66), and authority dependence (3.63), indicating that emotions and information influence remain deeply embedded in investment decision-making.

In terms of investor classification, the "cautious followers" type has the highest proportion at 33.9%, predominantly comprising young investors aged 18 to 29. This group also has the highest proportion of female investors (43%), characterized by susceptibility to market sentiment and a tendency to become cautious and conservative after incurring losses. The second largest group is the "hold-and-hope" type at 25.5%, mostly middle-level professionals aged 30 to 39, who tend to hold onto assets long-term after losses, waiting for a rebound.

Additionally, the "overconfident risk-takers" type accounts for 22.2%, primarily consisting of highly educated, affluent males who are prone to overconfidence and increasing allocations to high-risk assets. The "fear-of-missing-out" type accounts for 18.4%, who have relatively ample assets but trade frequently, driven significantly by FOMO sentiment.

Professor Eric Chui, Chair Professor of the Department of Applied Social Sciences at The Hong Kong Polytechnic University, stated that the virtual asset market is significantly influenced by social media and information dissemination, leading to complex and diverse investor behavior patterns. He emphasized the need to integrate behavioral science into investor education to enhance rational decision-making capabilities amid market volatility.