The Investment Advisory Committee under the Securities and Futures Commission (SFC) of Hong Kong released a special article on market forecasting: The public should reflect on the nature of investment.

The Investment Committee under the Hong Kong Securities and Futures Commission (SFC) issued a document titled “Understanding the Nature of Investment through Prediction Markets,” which states: Prediction markets are speculative markets created for the purpose of making predictions. Trading activities or contracts in prediction markets are not investment products. Key features include: events subject to prediction, trading mechanisms, trading prices, and payouts. Before considering any investment, investors should carefully consider the investment’s value, asset allocation, and regulatory safeguards. The Investment Committee notes that members of the public engaging in trading activities on prediction markets are not protected by the Securities and Futures Ordinance or any regulations enforced by the Hong Kong Securities and Futures Commission. Should problems arise, redress may be difficult—or even impossible—to obtain.