Annex 2: Individual investor behaviour during the COVID-19 crisis in selected jurisdictions
In the first edition of the half-annual report on Trends, Risks, and Vulnerabilities (no. 1, 2021) on EU capital markets, ESMA observed “large increases in stock buying and volume traded by retail investors, a trend confirmed by studies in different countries” such as Belgium, France, or Italy.
ESMA highlighted several reasons for this increased participation of retail investors in capital markets, such as additional savings due to consumption constraints or “increased time spent online during lockdowns, with ready access to online trading and investment tools”. Indeed, the global lockdowns and restrictive measures prompted increased use of digital tools and extra savings, which brought many new, young investors to capital markets. Based on BETTER FINANCE’s research on six EU Member States, the most notable increase in retail investments is the acquisition of listed shares, which was observed throughout these jurisdictions, albeit at different intensities.