Hong Kong retail funds hit record pace, surpass 2024 full-year total

Group 1: Market Performance - Hong Kong retail funds recorded gross sales of US$82.6 billion in the first three quarters of this year, surpassing the full-year total for 2024, with a year-on-year increase of 35% [1][4] - Net sales reached US$15.7 billion year to date, marking the highest level in the past decade and a 44% increase compared to the previous year, exceeding the US$12.3 billion net inflows recorded for all of 2024 [1][2] Group 2: Fund Categories - Fixed-income funds were the primary driver of growth, attracting US$10.8 billion in net inflows during the first three quarters [3] - Mixed-asset funds saw a reversal in outflow trends, drawing in US$1.7 billion [3] - Money market funds, traditionally favored for their safety and income generation, attracted US$2.9 billion but experienced net outflows for the first time since August [4] Group 3: Market Outlook - Expectations of interest rate cuts have contributed to the recent net outflows from money market funds, as indicated by industry experts [5] - Continued central bank easing throughout 2026 is anticipated to benefit fixed-income markets, with solid support expected from bond markets next year [5][6] - Analysts predict lower interest rates in the US and Europe due to weaker labor market trends and declining inflation [6]