Hong Kong’s MPF pension fund members lose HK$6,161 each in worst first-half performance in 10 years
Falling stock markets in Hong Kong and mainland China contribute to the decline, with more market uncertainty seen for the rest of the year
The disappointing performance of the Mandatory Provident Fund (MPF) scheme – the worst first-half result in a decade – compares with a gain of HK$18,502 per member in the first half of last year when stock markets were booming, according to Convoy Financial Services, an MPG advisory firm.
“The loss in the first half of this year is the worst first half-year performance of the MPF since 2008. The loss was a result of the investment return of the MPF funds in the first half of this year dropping by 2.92 per cent, driven mainly by the stock market tumble in Hong Kong and mainland China as a result of the US-China trade disputes,” said Kenrick Chung Kin-keung, director of product management at Convoy.
Chinese equity funds were the worst performers, falling by 8.61 per cent in June and a total of 4.41 per cent in the first half, while Hong Kong equity funds lost 7.78 per cent in June and 4.55 per cent overall, according to data from Convoy.
The Shanghai Composite Index lost 14 per cent in the first half, the worst performer among the world’s major markets. Hong Kong’s benchmark Hang Seng Index was down 3.2 per cent in the first half.