MPF investors lose $11,000 in April

Mandatory Provident Fund members on average lost HK$10,999 each in the first 23 days of this month, according to Gain Miles.

The Gain Miles MPF Composite Index dropped 4.5 percent in April, or 10.4 percent in the year to date.

And each member in the Gain Miles scheme has lost HK$27,317 on average so far this year, according to the assurance consultancy.

As of April 23, the firm's MPF Equity Fund Index fell 5.9 percent this month. The Mixed Asset Fund Index declined 4.6 percent, while the Fixed Income Fund Index was down by 1.2 percent.

Hong Kong equity funds fell by 7 percent in April and by 16.1 percent year-to-date. The Greater China Equity Fund fell by 8 percent in April and by a cumulative 20.1 percent year-to-date.

Gain Miles said the China and Hong Kong stock markets have been volatile in the past month amid the expectation of more aggressive interest rate hikes by the US Federal Reserve. Overall, most funds had performed worse than expected in April this year.

Meanwhile, OnePlatform MPF Composite Index, an MPF index compiled by a financial service platform under Convoy, saw a 1.77 percent month-on-month drop to 244.99 as of April 20.

This came as Morningstar said that if the energy crisis is resolved, the stock market will rebound.

The research firm said the stock market will have a stronger performance if energy prices fall and inflation in the mainland is in line with expectations in the second quarter.

The firm said financial stocks remain attractive given the positive interest rate outlook and economic recovery in the region, adding that improving net interest margin and continued economic recovery are positive drivers for share prices of Hong Kong and Singapore banks in the medium term.

For Chinese banks, it expects state-owned banks to report strong loan growth in the first quarter of this year, benefiting from the regulator's upfront-loaded policy easing to support the economy.

Retail sales growth in China in the second quarter should be weak, as the firm expects it will take six to eight weeks for Covid infections to peak with lingering measures to contain the outbreak.