Hong Kong’s MPF Members Reap HK$31,300 Windfall Amid Record Asset Growth, Fueled by Interest Rate Cuts and China’s Stimulus Measures

Members of Hong Kong's MPF experienced a HK$31,300 profit per person, marking the highest increase in 7 years. This surge was driven by reductions in interest rates and China's economic boost programs, leading to a market increase that brought MPF's overall assets to an all-time high of HK$1.327 trillion.

The 379 MPF investment funds have yielded an average profit of 12.8% in the span of a year leading up to September, as a result of the recent surge in the market propelled by the reduction in the interest rate and China's stimulus package, says MPF Ratings, a standalone research company.

Equity funds from Hong Kong and China, which are the preferred choice for about a quarter of all MPF assets, exhibited the highest performance during the period at 23.6 percent. They were the best performers in September specifically, with an increase of 18 percent, marking the second highest monthly return ever documented.

"Stocks from Hong Kong and China were the highest earners for the MPF, due to a significant boost in equity performance following an extensive economic stimulus plan announced by mainland China," stated Francis Chung, head of MPF Ratings.

"Despite multiple challenges confronting the markets, if trends continue positively, the MPF system could potentially reach a milestone with annual investment profits exceeding HK$150 billion for the first time. This would be a significant benefit for the 4.75 million members of the MPF."

For the first time in September, the total assets of the MPF exceeded the HK$1.3 trillion threshold, reaching HK$1.327 trillion. This figure, which includes both investment profits and fresh member contributions, equates to an unprecedented HK$279,100 per member.