MPF faces the average loss $64 in November, GUM says

Hong Kong's Mandatory Provident Fund recorded a V-shaped recovery in November, erasing previous losses, a consulting firm said.

In November, each MPF member experienced an average loss of HK$64, while the average gain over the past 11 months reached HK$44,133. The GUM MPF Composite Index reported a slight decrease of 0.02 percent in November, according to a report published by GUM on Wednesday.

The consultancy said that MPF members experienced an average loss of HK$4,000 at one point due to the US government shutdown and reignited fears of an AI bubble. However, after the shutdown ended and following strong earnings in the third quarter from major tech firms, market confidence rebounded, driving the composite index higher during the final trading week.

GUM also noted that the MPF trends in October and November followed a similar pattern, featuring a mid-month decline and end-of-month recovery, as funds with heavier tech exposure experienced significant fluctuations.

The consultancy added that bond funds continued to maintain upward momentum, benefiting from rising expectations of interest rate cuts.

Over the past 11 months, the overall equity fund index posted a return of 23.03 percent, while mixed asset funds dropped to 15.74 percent and fixed-income funds rose 3.18 percent, data from GUM showed.

Hannah Wang