A document from the Investment Committee under the Hong Kong Securities and Futures Commission states that trading activities or contracts that predict market movements are not investment products.

The Hong Kong Securities and Futures Commission's Investment Committee issued a document titled "Looking at the Nature of Investment from the Perspective of Prediction Markets," which points out that prediction markets are speculative markets created for the purpose of making predictions. The trading activities or contracts in prediction markets are not investment products. Their main characteristics include predictable events, trading operations, trading prices, and returns. Investors should carefully consider the value of any investment, asset allocation, and regulatory and protective measures before making any investment. The Hong Kong Investment Committee states that public participation in prediction market trading activities is not protected by the Securities and Futures Ordinance or any regulations enforced by the Hong Kong Securities and Futures Commission. In the event of problems, it may be difficult to recover losses, or even impossible to pursue legal action.