Odaily Planet Daily reports: A recent longitudinal study commissioned by the Hong Kong Investor and Financial Education Council (IFEC) and conducted by the Department of Applied Social Sciences at The Hong Kong Polytechnic University shows that herd behavior and emotional trading tendencies among Hong Kong virtual asset investors have significantly decreased since 2022. However, several behavioral biases remain prevalent, with the “herd-following, risk-averse” type still representing the largest investor segment. The study surveyed approximately 1,000 virtual asset investors between November and December 2025, with results presented at the IOSCO Retail Investors Committee seminar in June 2026. Data indicates that the score for blind market-following trading among Hong Kong virtual asset investors dropped from 3.63 to 3.19, with concurrent declines in imitation of market behavior and momentum chasing, suggesting that investment behavior has become more rational overall since the implementation of the virtual asset trading platform regulatory framework in 2023.
However, the study also highlights that several behavioral biases remain significant, including reliance on past experience (3.86), FOMO (3.77), the disposition effect (3.68), the gambler’s fallacy (3.66), and authority dependence (3.63), indicating that emotions and information continue to deeply influence investment decisions.
In terms of investor classification, the "herd-following and risk-averse" group accounts for the highest proportion at 33.9%, primarily consisting of young investors aged 18 to 29, with the highest percentage of females among all types (43%). This group is highly influenced by market sentiment and tends to become more cautious and conservative after incurring losses. The second largest group is the "stuck and holding" type (25.5%), mostly middle-aged professionals aged 30 to 39, who tend to hold their positions long-term in anticipation of a market recovery.
Additionally, the "Confident Aggressor" segment accounts for 22.2%, primarily consisting of highly educated, high-net-worth men who tend to be overconfident and increase allocations to high-risk assets; the "Fear of Losing" segment makes up 18.4%, comprising individuals with relatively substantial assets but frequent trading activity, significantly driven by FOMO sentiment.
Professor Choi Wing Hong from 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, and investor behavior patterns are complex and diverse. He emphasized the need to integrate behavioral science into investor education to enhance rational decision-making during market volatility.