Futu Upgrades Monthly Stock Investment Plan in Light of its Growing Popularity in Sluggish Market

(Hong Kong – 17 October, 2023) – Investors have an increasing demand for monthly investment plans against the recent sluggish stock market conditions. Futu Securities International (Hong Kong) Limited ("Futu") has seen a 119% increase in the transaction amount of monthly Investment on its platform in the first half of this year compared to the second half of last year, reflecting the rise in prevalence of regular investment in a gloomy market. In response to this market demand, Futu has proactively extended the number of available stocks for monthly investment to over 120, and enhanced the plan’s flexibility. This allows for regular contributions on all trading days to weather the volatility of stocks on specific transaction dates, making investments more flexible and independent.

Monthly Stock Investment on Futu Grows as Market Transactions Shrink; Tencent and BYD Leads in Platform Transaction Amounts
Using a dollar-cost averaging method, monthly stock investments assists investors to balance market risks. Data shows that the Hang Seng Index turnover declined by 21.7%[1] in the first three quarters of this year, while the transaction amount of monthly stock investments on the Futu platform climbed by 22.8%[2] during the same period. That indicates that the regular investment strategy has been favorable in volatile markets. Since the launch of monthly stock investments last year, large-cap blue-chip stocks and market tracking stocks/ETFs have been top choices among Futu's monthly stock investors (please refer to the table). To provide more options, Futu has expanded the list by adding not only component stocks from the Hang Seng Index, but also constituent stocks from the "Hang Seng Tech Index," "H-Share Index," and "Red Chip Index," doubling the total number of member stocks to 120.

Weekly Investments Outnumber Monthly Investments as Investors Seek Greater Flexibility; Futu Launches Ultra-Flexible Daily Investment Option
Investors' preference for regular investments has switched from monthly to weekly. According to Futu data for the first three quarters of this year, the number of investors participating in weekly investments has increased by 102%, a higher growth rate than the 62.83% increase in the number of monthly investors over the same period. Additionally, some investors who were previously engaged in monthly investments have converted to weekly investments, signaling a desire for shorter-term and more flexible investment plans.

Futu has been committed to providing investors with a comprehensive and convenient investment experience. Currently, the Futu platform offers options for monthly, biweekly, weekly, and even daily stock investments, catering to the preferences of different clients.

Mr. Daniel Tse, Managing Director of Futu Securities, said: "Hong Kong investors have always pursued flexibility and independence. The increasing transaction volume of monthly stock investments in the complex and ever-changing market environment reflects that some investors not only have no intention of withdrawing their investments but have also begun cultivating a long-term investment habit on the Futu platform to balance short-term risks. On the other hand, Futu is one of the few brokers in Hong Kong that provides daily stock investments. This demonstrates the brand's active response to and support of investors' needs. Futu will continue to review and expand monthly investment’s flexibility and options in the future, to become the best long-term investment partner, aiding each client in finding opportunities amidst the fluctuations of the market.”

[1]Comparison of transaction volume between the first quarter and third quarter of 2023, Data Source: Hong Kong Stock Exchange
[2]Comparison of monthly transaction volume between the first quarter and third quarter of 2023
[3]Based on the transaction amount of monthly stock investments on Futu's platform since this year as of the end of September