Hong Kong Investor Council: Male Virtual Asset Investors Tend to "Overconfident Gambling," While Females Are Prone to "Cautious Herding"

Odaily Planet Daily News The Investor and Financial Education Council (IFEC) of Hong Kong commissioned the Department of Applied Social Sciences at The Hong Kong Polytechnic University to conduct a follow-up study, which shows that the herding behavior and emotional trading tendencies of Hong Kong virtual asset investors have significantly decreased compared to 2022. However, multiple behavioral biases remain prevalent, with "Cautious Followers" still being the largest investment type. The study surveyed approximately 1,000 virtual asset investors between November and December 2025, and the results were announced at the International Organization of Securities Commissions (IOSCO) Retail Investor Committee seminar in June 2026. Data indicates that among Hong Kong virtual asset investors, the tendency score for blindly following market trends dropped from 3.63 to 3.19, with both the imitation of market behavior and trend-chasing actions declining in tandem, suggesting that investor behavior has become more rational overall 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), the disposition effect (3.68), gambler's fallacy (3.66), and authority dependence (3.63), indicating that emotions and information influence still deeply permeate investment decisions.

From the classification of investors, the "Cautious Followers" constitute the highest proportion at 33.9%, primarily comprising young investors aged 18 to 29, with the highest proportion of females among all types (43%). This group is characterized by susceptibility to market sentiment and a tendency to become cautious and conservative after incurring losses. The second largest group is "Holders Trapped in Losses" (25.5%), mostly mid-level professionals aged 30 to 39, who tend to hold assets long-term after losses while waiting for a rebound.

Furthermore, "Overconfident Gamblers" account for 22.2%, mainly consisting of highly educated, wealthy males, who are prone to overconfidence and increasing allocations to high-risk assets. The "Fear of Missing Out" type represents 18.4%, who are relatively well-off but trade frequently, driven significantly by FOMO sentiment.

Professor Chui Wing Hong from the Department of Applied Social Sciences at The Hong Kong Polytechnic University stated that the virtual asset market is heavily influenced by social media and information dissemination, and investor behavior patterns are complex and diverse. He emphasized that investor education should be strengthened by incorporating behavioral science to enhance rational decision-making capabilities during market volatility.