The retail investor participation rate in the local stock market rose from 24% of the adult population in 2004 to more than 28% last year, a Hong Kong Exchanges & Clearing survey has found.

The results of the Retail Investor Survey 2005, released today, showed 28.6% of the adult population were stock investors.

About 28.8% were retail investors, who were either stock investors or derivatives investors, or both, and 38.5% of stock traders were online stock traders, up from 35.8% in 2004. About 59% of stock traders traded solely through banks, up from 46% in 2001.

The median number of stock transactions by stock investors during the 12-month period was five, compared to four in 2004. For stock traders only, the median number of stock transactions was 10; the average value per stock transaction had a median of $40,000; and the median implied total stock transaction value per stock trader during the 12-month period was $340,000.

The median number of derivatives transactions by derivatives investors was six, less than the 10 in 2004. The average contract volume per derivatives transaction had a median of three, compared to two in 2004. The median implied total contract volume per derivatives investor during the 12-month period was 24, less than the 30 in 2004.

Stock investors were generally positive about the local stock market and showed a higher degree of satisfaction than in 2004. Derivatives investors were also generally positive about the local derivatives market.