Hong Kong Rising Affluent Financial Well-being Index | Charles Schwab

Transcript of the video:

[Music]

On a white screen, the blue Charles Schwab logo appears. Below that, blue text fades up that reads, Hong Kong Rising Affluent Financial Well-being Index. Below that are Chinese characters. The screen fades to show Michael Fong, Managing Director, Charles Schwab Hong Kong. All English text is translated with Chinese characters. Michael is seated in an office setting in front of a white wall with the Charles Schwab Logo and Chinese characters beside it.

Voiceover:

"In the Charles Schwab Hong Kong Rising Affluent Financial Well-Being Index, we like to explore shifting perceptions and investment behaviors of Hong Kong's Rising Affluent. And we find that in 2021, Hong Kong made important steps towards the new normal, breeding three key shifts in attitude and behaviors when it comes to making investment decisions."

The screen changes to show a text graphic on a background that includes a white panel on the left side, light grey in the middle, and a smaller blue panel on the right. All English text is translated with Chinese characters. The text fades in, first the header and then the text from left to right. The header reads, Returning Investor Confidence. The first column of text on the left has a subheader, 2019, and below that is the number 53.82. The second column of text from the left has a subheader, 2020, and below that is the number 55.25. The third column of text in the blue part of the screen on the right has a subheader, 2021, and below that is the number 59.13. Three circular graphics are shown below 2019, 2020, and 2021. These graphics are partially outlined with half of a dark blue circle which appears around the right side of each number.

"First of all, the overall financial well-being score has shown steady improvement in the past three years."

A graphic of a hand grasps the left edge of the blue part of the screen and pulls it over so that the blue screen and third column number fill the screen. The year 2021 disappears. To the right of the number graphic labeled 59.13 is a series of green arrows moving upward, and numbers appear to the right of that, rapidly increasing until they hit 3.85. To the left of the screen, a column of four black text sections and icons appear. The top one reads Confidence, and below it is an icon of a bar graph and a rising arrow, and the numbers 57.16, with +5.01 in green. The second reads Planning, and below that is an icon of a clipboard and the number 26.45, with -0.52 in red. The third reads Management and has an icon of a flowchart and the number 73.10, with -1.23 in red. The fourth reads Engagement and has an icon of three bubble people and the number 63.65, with +4.21 in green. The number 59.13 now has an additional four thin circles appear to the right around it.

"We're seeing a 3.85 point increase from the last year, driven by confidence and engagement, suggesting that the Hong Kong Rising Affluents are taking a more active stance in managing their finances."

The screen changes to a graphic with the header Negative impact of COVID-19 is fading. There are Chinese characters below this header. Below that is a white bar labeled Decreased confidence due to COVID-19, which is moving steadily to the right. A number in a dark blue bar connected to the white bar decreases from 42.0% to 29.3%. Below that is a graphic of an arm and a hand pushing away an image of a coronavirus. The coronavirus exits the screen to the right and the pushing hand changes to a thumbs up. Next to the hand appears a series of down red arrows, and a number drops in that changes rapidly from 79.4% to 12.7%. Text in white that reads, Compared to last year, appears below that number, and the thumbs up hand bobs up and down. Chinese characters are listed below this number.

"Next, as we move towards the new normal, negative impact of COVID-19 on confidence over personal finances is fading. With a drop of 12.7 percent respondents claiming that COVID-19 affects their confidence in personal finances."

The screen changes to a graphic of two hands, palms up, one appearing from the left and one appearing from the right. The left hand is holding a ball with a needle pointing to the northeast. Below that needle is the label Progressive with two Chinese characters and below that in a white box is the number 23.8%. The right hand is holding a ball with a needle pointing east. Below the needle is the label Aggressive with two Chinese characters, and a white box with the number 19.2%. The left hand bounces the ball up and down as the number 2.7% appears with green arrows pointing up. The right hand bounces the ball up and down as the number 4.3% appears with green upward arrows.

"There is a more aggressive risk appetite with increased investments in various financial products like bonds and ETFs."

The screen changes to a graphic with the header, More trust towards financial advisors with Chinese characters below. Two dark blue hands appear. The left hand is holding a clipboard that reads, Have a formal written financial plan with additional Chinese characters. Below those words are the number 0.0% in a gray circle. The right hand appears holding a blue pen and draws on the clipboard. A rapidly increasing number with upwards green arrows appears to the right of the clipboard, rising from 0.0% to 8.8%. At the same time, the number on the clipboard increases to 41.9%, and a little more than one-third of the gray circle to the right of the number becomes dark blue. The right hand exits the bottom of the screen, then reappears with no pen and grasps the clipboard. The clipboard becomes blank white, and the screen zooms in on the clipboard. The number 53.1% appears on the clipboard in dark blue, and the words, seek help from financial advisors to complete financial plans are below that number along with a few Chinese characters.

"And finally, we see the trust in financial advisors, institutions, platforms, and tools has increased, and more rising affluents sought help from financial advisors. 41.9 percent have a formal written financial plan, while 53.1 percent of them had help from financial advisors to complete their financial plans."

The graphic screen fades out and is replaced with the screen of Michael Fong.

"We're very glad to see an increasing optimism among Hong Kong's Rising Affluent, as many start to see the light at the end of the tunnel. Whether you're looking to invest in stocks and ETFs or explore investment opportunities in the US, Schwab has the expertise and tools to guide you along the way."

The screen transitions to a white background with the Charles Schwab logo and the words schwab.com.hk, +852-2101-0511.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for

everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Diversification and rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable

events may be created that may affect your tax liability.

Past performance is no guarantee of future results. Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

Nothing here is an offer or solicitation of securities, products and services by Charles Schwab, Hong Kong, Ltd. and its affiliates in any jurisdiction where their offer or sale is not qualified or exempt from registration.

Charles Schwab, Hong Kong, Ltd. is registered with the Securities and Futures Commission ("SFC") to carry out the regulated activities in dealing in securities and advising on securities under registration CE number ADV256.

[Music]

[End of Audio]