Mandatory Provident Fund scheme members each gained HK$6,900 on average in the first half of this year, with Hong Kong and China equity funds the worst performers during the period, according to research firm MPF Ratings.
In comparison, US equity funds were the best performers and a 20.5 percent year-to-date return difference between US equity funds and Hong Kong and China equity funds is the largest half-year variance since the launch of the MPF scheme, it said.
Each MPF member gained HK$6,400 in June, and the rebound helped reduce the loss in the second quarter to 0.95 percent and contributed to an average investment gain of 3.07 percent for the first half of the year.
Total MPF assets by the end of June stood at HK$1.112 trillion, up HK$60.5 billion since the beginning of 2023.
An average MPF account balance reached HK$236,800, growing by HK$7,200 from the previous month and by HK$12,900 from the start of the year.
While a pleasing result for the first half, it could have been better had local equities been able to maintain their early 2023 momentum, said Francis Chung, chairman of MPF Ratings.
With a 21 percent market share, Hong Kong and China equity funds are MPF's largest asset classes, Chung noted.
Separately, Schroders said it has turned neutral on global equities as it now sees less short-term risk to corporate earnings due to the absence of an imminent move into a global economic slowdown.
