In the latest issue of its online magazine, InvestEd Intelligence, the SFC urged investors to understand the structures of products they are investing in and to monitor closely the credit risks of product issuers as well as their counterparties, especially during dramatic market fluctuations.
“With sovereign debt problems, weakening economic prospects and other uncertainties in Western economies, international financial institutions could be particularly vulnerable,” said the SFC’s chairman Eddy Fong. “Investors must monitor the market situation and understand what implications it has on their investments, such as whether the credit rating of any product they’ve invested in is declining.”
Fong also reminds investors to assess whether they need to adjust their portfolios or investment strategies in response to the changing economic, financial or political developments in local and overseas markets.
