The Investor and Financial Education Council (IFEC) commissioned the Hong Kong Polytechnic University (PolyU) Department of Applied Social Sciences to conduct a follow-up study on Behavioural Science Study on Investor Behaviour in the Virtual Asset Markets: Heuristics in Virtual Assets Investment Decision-Making which was first conducted in 2022. The latest findings reveal that Hong Kong virtual asset (VA) investors are showing significant declines in herd-following tendencies, post-gain risk exposure and reliance on past experience.

The latest findings were presented to the global counterparts for the first time at the International Organization of Securities Commissions (IOSCO) Committee on Retail Investors (Committee 8) Virtual Workshop on Investor Resilience – Mainstream Investors on 10 June 2026. During the workshop that served as a global best practice sharing session to help shape evidence-based investor education framework worldwide, Professor Eric Chui, Chair Professor and Head of the Department of Applied Social Sciences and Co-Director of the Policy Research Centre for Innovation and Technology at PolyU, presented the research findings.

The new licensing regime for virtual asset trading platforms has been implemented in Hong Kong since June 2023, providing retail investors with a more regulated market environment. These findings offer evidence-based insights to help formulate more targeted investor education. The cross-wave comparison between the 2022 and 2025 studies shows several notable positive trends among retail investors:

• Declining crowd-following on market volume: Herding tendencies have significantly decreased, with investors becoming less likely to blindly mirror overall market transaction volumes (average score: from 3.63 to 3.19 on a 5-point scale).
• Declining asset copying: Investors are less prone to mimicking specific asset choices made by the crowd (average score: from 3.49 to 3.30).
• Declining risk-seeking after gains: The tendency to scale up risky trades or become overly risk-seeking immediately after achieving financial gains has declined (average score: from 3.11 to 2.89).
• Reduced reliance on past experience: Investor reliance on past personal experiences has declined (average score: from 4.03 to 3.86).

Despite these positive changes, the study indicates that Hong Kong virtual asset investors still exhibit underlying behavioural biases. Notably, fear of missing out (FOMO) and over-confidence remain prevalent, while reliance on intuition and authority figures (including finfluencers) has risen across the two studies.

IFEC General Manager Ms Dora Li, who is a member of the IOSCO Committee 8, said: “The study revealed positive changes in the behaviour of Hong Kong virtual asset investors, reflecting ongoing efforts to provide a more regulated market environment, strengthen stakeholder collaboration, and enhance investor education. The IFEC is pleased to collaborate with PolyU on this innovative research and share these findings with IOSCO’s counterparts. The study provides valuable evidence on investor behaviour to support global regulators’ efforts to strengthen investor resilience, thereby contributing to more effective investor education and stronger protection for retail investors worldwide.”

Professor Eric Chui, Chair Professor and Head of the Department of Applied Social Sciences and Co-Director of the Policy Research Centre for Innovation and Technology at PolyU, added, "Virtual assets, as a relatively new investment product, are often influenced by market sentiment and various information from social media and other new channels, which can easily affect investors’ emotions. This study indicates that some behavioural biases remain among retail investors, underscoring the importance of building investor resilience and self‑awareness. As investor behaviour does not follow a single fixed pattern, integrating behavioural insights into tailored investor education can help investors examine their own behaviour and attitude towards investing, stay grounded amid market volatility, and make informed decisions. PolyU is honoured to present the research results to the global regulatory community, together with the IFEC, in a bid to share our experience with international counterparts.” 

The IFEC encourages the public to make use of the diverse resources and tools available on its website and social media platforms to build sound financial habits and adopt these principles when investing:

• Exercise independent judgement over online information: Before making an investment decision based on finfluencers’ directive, pause to evaluate their underlying motives, check for hidden conflicts of interest, and always independently verify the licensing status of the person and the platforms being recommended.
• Invest with discipline and structure: Guard against instinct-driven investment decisions. Set clear and rational investment objectives, such as defined entry and stop-loss strategies before committing to an investment decision.
• Do your own homework: Filter out the noise of online chat groups and market rumours. Always cross-check investment information against credible sources to ensure the decisions are grounded and align with your pre-set investment objectives and risk appetite.

Appendix: 2025 Behavioural Science Study on Investor Behaviour in the Virtual Asset Markets

Photos and captions:

Image 1

Panel discussion at the IOSCO Committee 8 Virtual Workshop on Investor Resilience – Mainstream Investors, held on 10 June 2026.

Panellists:
Professor Eric Chui, Chair Professor and Head of the Department of Applied Social Sciences and Co-Director of the Policy Research Centre for Innovation and Technology, The Hong Kong Polytechnic University
Mr. Miles Larbey, Head of Financial Consumer Protection, Education and Inclusion, OECD
Ms. Andrea Petra Sticha, Research Director, Stanford University’s Initiative for Financial Decision Making

Moderator:
Ms. Dora Li, General Manager of the Investor and Financial Education Council and a member of the IOSCO Committee 8

Image 2

Ms. Dora Li, General Manager of the Investor and Financial Education Council, Professor Eric Chui, Chair Professor and Head of the Department of Applied Social Sciences and Co-Director of the Policy Research Centre for Innovation and Technology at at the Hong Kong Polytechnic University, and the teams from the IFEC and PolyU met to discuss the findings of the Behavioural Science Study on Investor Behaviour in the Virtual Asset Markets: Heuristics in Virtual Assets Investment Decision-Making.