Hong Kong Study Finds Lower Herding and Emotional Trading Among Virtual Asset Investors Since 2022

A tracking study commissioned by Hong Kong’s Investor and Financial Education Council found that herding behavior and emotionally driven trading among Hong Kong virtual asset investors have declined markedly compared with 2022, though several behavioral biases remain widespread. According to Odaily, the research was conducted by the Department of Applied Social Sciences at The Hong Kong Polytechnic University and surveyed about 1,000 virtual asset investors between November and December 2025, with results released in June 2026 at a seminar of the International Organization of Securities Commissions’ (IOSCO) Retail Investor Committee. The study reported that the score for blindly following market trades fell to 3.19 from 3.63, while tendencies to imitate market behavior and chase rising prices also declined. The findings said overall investment behavior became more rational after the implementation of a regulatory regime for virtual asset trading platforms in 2023. However, the study said several behavioral biases remained significant, including reliance on past experience (3.86), fear of missing out (3.77), the disposition effect (3.68), the gambler’s fallacy (3.66), and reliance on authority (3.63). By investor type, the largest group was described as “trend-following but cautious,” accounting for 33.9% and mainly consisting of investors aged 18 to 29. This group had the highest share of women among the categories at 43% and was characterized as being influenced by market sentiment and becoming more conservative after losses. The second-largest group, described as “holding while trapped,” accounted for 25.5% and was mainly mid-level professionals aged 30 to 39 who tended to hold positions for extended periods after losses while waiting for a rebound. The study also identified a “confident risk-taking” group at 22.2%, mainly high-education, high-wealth men who were prone to overconfidence and increasing high-risk allocations, and a “fear of falling behind” group at 18.4% with relatively ample assets but frequent trading driven by FOMO. Cui Yongkang, a chair professor in the department, said the virtual asset market is heavily influenced by social media and information dissemination, and that investor education should incorporate behavioral science to improve rational decision-making during market volatility.