The Investment Committee under the Hong Kong Securities and Futures Commission: Trading activities or contracts in prediction markets are not investment products

Odaily reported that the Investment Committee under the Hong Kong Securities and Futures Commission (SFC) issued an article titled "Understanding the Essence of Investment through Prediction Markets," stating that prediction markets are a form of speculative market created for the purpose of making predictions. The trading activities or contracts in prediction markets are not investment products. Their main characteristics include: predictable events, trading operations, trading prices, and returns. Before considering any investment, investors should carefully evaluate the value of the investment, asset allocation, as well as regulatory oversight and protections.

The Hong Kong Investment Committee stated that public participation in prediction market trading activities is not covered by the Securities and Futures Ordinance or any regulations enforced by the Securities and Futures Commission. If problems arise, it may be difficult or even impossible to seek recourse.