TechFlow News, April 27: The Investment Committee under the Securities and Futures Commission (SFC) of Hong Kong issued a statement titled “Predictive Markets and the Essence of Investment,” which states: Predictive markets are speculative markets established for the purpose of making predictions. Trading activities or contracts in predictive markets are not investment products. Key features include the events being predicted, trading mechanisms, trading prices, and payouts. Before considering any investment, investors should carefully assess its investment value, asset allocation, and regulatory protections.
The Investment Committee noted that members of the public engaging in predictive market trading activities are not protected by the Securities and Futures Ordinance or any regulations enforced by the SFC. Should problems arise, recovery may be difficult—or even impossible.
