MPF Rating: In May, the overall investment return of Hong Kong's Mandatory Provident Fund was approximately 3.61%, with an average earning of HKD 10,100 per person
In May, the overall investment return of Hong Kong's Mandatory Provident Fund (MPF) was approximately 3.61%, with an average gain of about HKD 10,100 per person. Total assets reached a historic high of approximately HKD 13.86 trillion. This was mainly benefited by the stock market, particularly the strong performance of U.S. equity funds, which rose by about 6.9%. Despite the rebound in U.S. stocks, their performance year-to-date still lags behind the past two years
According to the Zhitong Finance APP, the Provident Fund Rating indicates that the overall investment return of Hong Kong's Mandatory Provident Fund (MPF) in May was approximately 3.61%, estimating the investment income of the MPF at around HKD 48.2 billion, which means that each MPF member earned an average of about HKD 10,100. The investment return in May was mainly driven by the stock market, with all major stock markets recording positive returns. Among them, U.S. stock funds rose by about 6.9%, marking the best single-month performance since November 2023, offsetting all losses for the year, although U.S. stock funds still lag behind year-to-date performance.
After accounting for contributions, the Provident Fund Rating estimates that the total assets of the MPF rose to approximately HKD 13.86 trillion by the end of May, an increase of about HKD 52 billion from the end of April, and an increase of about HKD 94.7 billion year-to-date, reaching a historical high since the MPF's inception. This is equivalent to an average account balance of about HKD 289,100 for MPF members, which is an increase of about HKD 10,800 from the end of April and an increase of about HKD 19,800 year-to-date.
Cong Chuanpu, chairman of the Provident Fund Rating, pointed out that this achievement was mainly benefited from the strong performance of mainland and Hong Kong stock funds. According to the "Provident Fund Rating Hong Kong and China Stock Fund Index," mainland and Hong Kong stock funds rose by about 5.62% in May, with a cumulative increase of about 13.59% year-to-date.
He stated that Moody's decision to downgrade the U.S. sovereign credit rating from Aaa to Aa1 is concerning, but as U.S. Treasury prices fell, U.S. stocks successfully emerged from difficulties, recording positive returns for the first time since January this year. Despite the rebound in U.S. stocks, U.S. stock funds still lag behind year-to-date performance, contrasting sharply with the strong performance of over 20% returns recorded in the past two years
