A latest tracking study commissioned by Hong Kong’s Investor and Financial Education Council and carried out by the Department of Applied Social Sciences at the Hong Kong Polytechnic University found that herding behavior and emotional trading tendencies among Hong Kong virtual asset investors have declined notably compared with 2022. Even so, the study said several behavioral biases remain common across the investor base. Among the classified investor types, the group described as “trend-following but risk-averse” remained the largest category, showing that market sentiment and information flows continue to play a role in investment decisions.
About 1,000 Virtual Asset Investors Were Surveyed
The study surveyed about 1,000 virtual asset investors between November and December 2025. Its findings were released in June 2026 at a seminar of the International Organization of Securities Commissions (IOSCO) Committee on Retail Investors. According to the data, the score measuring investors’ tendency to blindly follow market trading fell from 3.63 to 3.19. Imitation of market behavior and chasing rising prices also declined at the same time. The research said this indicates that, after the implementation of Hong Kong’s regulatory regime for virtual asset trading platforms in 2023, investment behavior has become more rational overall.
However, the study also found that multiple behavioral deviations remain significant. Reliance on past experience recorded a score of 3.86, FOMO stood at 3.77, the disposition effect at 3.68, the gambler’s fallacy at 3.66 and reliance on authority at 3.63. These readings show that emotions, previous experience and external information still participate deeply in decision-making for virtual asset investments, even as some forms of blind following have eased.
Investor Profiles Show Differences by Age, Gender and Wealth
By investor classification, the “trend-following but risk-averse” group accounted for the highest share at 33.9%. This group was mainly composed of younger investors aged 18 to 29, and it also had the highest female representation among all categories, at 43%. Its defining features were sensitivity to market sentiment and a tendency to become cautious and conservative after losses. The second-largest group was the “trapped but unwilling to sell” type, representing 25.5% of respondents. These investors were mostly middle-level professionals aged 30 to 39 and tended to hold positions for a long time after losses while waiting for a rebound.
The study further identified the “confident risk-taking” type, which accounted for 22.2% of investors and was mainly made up of highly educated, high-wealth men. This group was described as prone to overconfidence and to increasing allocations to high-risk assets. Another group, described as “fearful of missing out,” made up 18.4% of investors. These respondents had relatively abundant assets but traded frequently, with behavior clearly driven by FOMO. Chui Wing Hong, chair professor at the Department of Applied Social Sciences of the Hong Kong Polytechnic University, said the virtual asset market is heavily influenced by social media and information dissemination, and investor behavior patterns are complex and varied. He said investor education should be strengthened through behavioral science to improve rational decision-making ability during market volatility.