MPF Ratings estimated Mandatory Provident Fund net inflows in 2026's first quarter at HK$11.98 billion, up 0.36 percent from the previous quarter.
However, the net inflow was 2.9 percent lower than the 5-year historical quarterly average of HK$12.34 billion.
Notably, Japanese equities attracted 10.54 percent of the first-quarter net inflows, around 13 times their 0.81 percent overall market share of total MPF assets. This surge highlights concerns over short-term performance chasing by members.
The MPF system recorded a first-quarter loss of 1.98 percent at the end of March, with MPF total assets now around HK$1.54 trillion, equivalent to an average MPF account balance of HK$320,109 for 4.79 million MPF members.
The MPF Ratings also estimated that DIS funds accounted for almost 35 percent of MPF's quarterly net inflows, but traditional mixed asset funds continue to see net outflows.
While large scheme providers continue to dominate absolute net inflows, the first quarter net inflows were characterized by the resurgence of scheme providers such as Fidelity, BOCI-Prudential, YF Life, and China Life, which attracted net inflow shares significantly higher than their overall market share.
Francis Chung, chairman of MPF Ratings, expressed concern that MPF members appear to be using their MPF funds to speculate on short-term market movements rather than focusing on long-term wealth creation.
MPF Ratings believes members should "stop speculating and start investing", and the risk of choosing markets and time is far greater than staying invested and diversified.
