Futu launches its first report on digital transformation of Investor Relations Management

April 26, 2022 (Hong Kong) - Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform focusing on global investors, and its integrated enterprise service brand, Futu I&E announce the launch of its first-ever report on digital transformation of Investor Relations Management (IRM)(the “Report”), revealing the need for listed companies to become more digital-savvy in IRM to cope with the emerging young and professional investors, and their accelerated expectation for digital IR communications, to seize market opportunities.

Emerging young and professional investors are here to stay: over 70% of investors have participated in virtual earnings events and roadshows

To investigate the trend of digital transformation of IRM and enhance the effectiveness of corporate communications, Futu derived data from its platform and transactions for analysis. Futu’s users’ demographics show that people who work in financial services with a primary focus on the internet-related aspect are becoming the main driving force in stock investment; most of these are from post-80s and post-90s generations, accounting for 38% and 35%, respectively.

This group shows three characteristics. Firstly, they have deep knowledge of the business models of new economy companies. In addition, they possess strong purchasing power, support companies’ velocity and tend to purchase the company’s products; As such, companies' products, cultures, and values play a crucial role in their investment decision making. Finally, they are more accepting of the new model of communications. Futu’s survey shows that over three-quarters of young investors have participated in virtual earnings performance conferences and roadshows.

Statistics show that the peak hours are during the market opening session from the users’ comments section. The users mainly discuss Hong Kong stocks from 9am to 12pm, and comment on the US market from 9pm to 12am.

Digitalization fosters information flows and enhanced engagement: 75% of investors follow FUTU Page

The Report showed the increasing demand for online information consumption and interactions with the listed companies. The statistic of Futu active users shows that 75% of them followed FUTU Page, and nearly 30% of them had engaged with the listed companies, including liking, commenting, and participating in companies’ live broadcasts and other activities in 2021. The high level of engagement shows the investors' passionate desire to connect with corporates and keep abreast of the latest corporate information.

In Hong Kong, Futu’s news push for stock information(61%) and corporate account (39%) served as the primary source of information for corporate’s response when an emergency occurs, followed by Facebook(30%) and WhatsApp(27%). In addition to the official corporate channels, nearly 35% of investors also study analysts’ reports.

Rising of professionalized retail investors presses for rapid reaction by listed companies  

The Report cited a few industry examples to showcase the new trends in IRM, including the increase in investment into IRM digitalization, the widespread use of online multimedia platforms based on investors’ need, such as live broadcasts and virtual roadshows, to enhance investors’ engagement. Besides, as a highly concentrated and professional-driven market, Hong Kong saw some investors becoming more “institutionalized” or “professionalized” based on their excellent investigation capability, industry know-how, experience, as well as activeness in investment. In such a context, listed companies are advised to focus on communicating core company values, enhance their data analysis capability and reinforce digital IRM fulfilling the needs of digitalization. 

Key to digitalization: a top-down transformation and full utilization of data resource

After the pandemic, the communication model has changed between listed companies and investors under ‘the new normal’. Traditional IRM and information circulation are no longer suitable for the current environment. However, according to a study on the digitalization of Chinese companies[1], only 16% of Chinese enterprises have achieved satisfactory results in their digital transformation. In other words, over 80% of companies underperformed in this regard. The Report found that some of the listed companies overemphasized infrastructure upgrading in their IRM digital transformation while paying less attention to reshaping the organizational culture to be more digital compatible. Hence, management’s involvement is vital to achieving digitalization. Meanwhile, the Report also suggested that companies should maintain their owned databases for more effective and precise communications with their investors.

FUTU Page helps connect companies and investors for effective communications in light of the current market demand and communications gap. Listed companies can register their official account on Futu social platforms, and reach out to retail investors through virtual product launching, results announcement, management interviews, and engaging videos to achieve a more effective and efficient IRM. Statistics shows that over 35% of companies gained an extra 50% increment of followers as bookmarked stock after registering an account on FUTU Page, while over 40% of the companies gained over 20% in their transaction volume.

Futu Work Desk, a tool for companies to implement digital management, enables companies to access analysis of the capital market, investor insight, analysis of the corporate account operation and more. It is a one-stop platform to help companies stay astute for the market changes in achieving precise communications by the full use of data as a resource.

Mr. Leaf Hua Li, Futu’s Founder, Chairman, CEO & Chairman of the Technology Committee, said: “When companies transform to embrace digitalization, they need to access the tools, technologies, platforms and communication models that are easy to use and do what they need to capture market opportunities. FUTU I&E, as the world’s leading corporate service provider, has been striving to provide the comprehensive solutions, helping companies and retail investors unlock investment value in the digital era. It also exhibits Futu’s commitment to using technology to create an effective investment platform and build a more ideal investment ecosystem. For the coming years ahead, we will continue to innovate to enhance the efficiency of corporate communications, and create favorable conditions for the market participants to capitalize on the potential of IRM digitalization.”

“2022 IR digitalization report” is Futu’s first-ever report on investor relations and the trends of digitalization, according to Futu’s experience in IRM and historical data derived by millions of user portfolios and comments on its social platform, as well as the survey conducted with 1,400 users. As of 2021 Q4, Futu has already served over 236 listed companies with IPO services & related IR services. Over 800 listed companies have set up corporate accounts on Futu platform.

[1]《2021中國企業數字轉型指數研究》