Core Insights - The GUM MPF Composite Index rose by 0.3% in October, reaching 284.9 points, with an average gain of HKD 830 per person for the month and HKD 44,197 year-to-date [1][1][1] Market Performance - Market fluctuations in early October were triggered by the stalemate between the US and China over rare earths and tariffs, leading to a temporary decline in stock prices [1] - A shift in sentiment occurred after former President Trump adopted a more conciliatory tone on social media, alleviating market fears and allowing stock markets to stabilize [1] - The US and China have paused the escalation of their rare earth and tariff disputes, contributing to improved market conditions [1] Asset Allocation - The outlook for stock funds in mainland China, Hong Kong, and Japan remains optimistic, driven by a pragmatic approach in US-China trade negotiations aimed at finding solutions and reducing concerns over conflict escalation [1] - Expectations are that the Bank of Japan will maintain an accommodative monetary policy under the new Prime Minister Fumio Kishida, alongside aggressive fiscal expansion, which is believed to support asset prices [1]

Group 1 - The core viewpoint of the news is that the MPF (Mandatory Provident Fund) performance index has declined by 0.3% as of the last trading week of October, indicating potential for the first monthly loss in six months if October ends negatively [1][2] - As of October, the total investment loss is approximately HKD 3.9 billion, resulting in an average loss of HKD 821 per MPF member, despite a year-to-date total return of HKD 203.3 billion, equating to an average gain of HKD 42,404 per member [1] - The total assets of the MPF are projected to reach HKD 1,529 billion by the end of October, slightly down from HKD 1,530 billion in September, with an average account balance of HKD 318,914, which is a decrease of approximately HKD 195 from September [1] Group 2 - The chairman of MPF Ratings, Francis Chung, indicated that the U.S. government's tariff threats could disrupt the record performance of the MPF expected in 2025, despite the total assets reaching a new high of HKD 1,530 billion in September and year-to-date returns hitting a record HKD 207 billion [2] - The market sentiment may shift positively as the leaders of China and the U.S. are expected to meet, which could allow the MPF to achieve a sixth consecutive month of positive returns and set a new total asset value high [2]

Group 1 - The average annualized net return of stock funds in the Mandatory Provident Fund (MPF) since its launch at the end of 2000 until June 30, 2025, is 4.7%, with a maximum of 9% and a minimum of 2.2%, outperforming the average annualized inflation rate of 1.8% during the same period [1] - The average annualized net return of mixed asset funds since the MPF's inception is 4.3%, with a maximum of 5.3% and a minimum of 2.4% [1] - As of June 30, 2025, stock funds account for 45% of the total MPF assets, while mixed asset funds account for 34%, together representing approximately 80% of the total [1] Group 2 - As of June 30, 2025, there are 3.57 million MPF accounts invested in Default Investment Strategy (DIS) funds, which is over 30% of the total 11.31 million MPF accounts [1] - The total asset value of DIS funds is HKD 150.8 billion, accounting for over 10% of the total MPF assets [1] - The average annualized net return of DIS's "Core Accumulation Fund" and "Age 65 Fund" is 6.5% and 2.4%, respectively, since the DIS was officially launched on April 1, 2017 [1] Group 3 - In the second quarter of 2025, total contributions to the MPF reached HKD 22.5 billion, with mandatory contributions accounting for HKD 16.8 billion (75%) and voluntary contributions for HKD 5.7 billion (25%) [2] - The total amount of MPF benefits paid out was HKD 12.3 billion in the same quarter [2] - The number of applications to withdraw MPF due to permanent departure from Hong Kong was 6,400, representing a year-on-year and quarter-on-quarter decrease of 12.3% and 4.5%, respectively [2]

Group 1: Market Overview - The Hong Kong stock market lacks direction, with the Hang Seng Index expected to continue fluctuating around the 25,000 points level [2][3] - The Hang Seng Index opened at 25,216, reached a high of 25,216, and closed at 25,104, down 61 points or 0.24% [3] - The total market turnover decreased to HKD 23.94 billion [3] Group 2: Macro & Industry Dynamics - As of August 18, the overall return of the Mandatory Provident Fund (MPF) increased by 1.6%, with an average gain of HKD 4,956 per person [6] - Year-to-date, the MPF composite index rose by 11.9%, with stock fund indices increasing by 16.7% [6] - The strongest performing fund in August was the Japanese stock fund, which rose by 5.5%, while the weakest was the US stock fund, which only increased by 1.3% [6] Group 3: Company News - Smoore (06969) continues to invest in the development of Heat-Not-Burn (HNB) products, with a focus on enhancing user experience and optimizing tobacco flavor [11] - The company reduced its R&D spending on electronic vapor products, prioritizing HNB products and medical vaporization, with total R&D expenditure of approximately RMB 723 million, down about 4.9% year-on-year [11] - Tencent's new mobile game "Valorant" generated approximately HKD 7.8 million on its first day of release, with around 170,000 downloads [13]

Core Insights - The total assets of Hong Kong's Mandatory Provident Fund (MPF) market increased by 1.3% to HKD 1.45 trillion as of July 31 [1] - Manulife leads the market with a 27.3% share, followed by HSBC at 18.1% and Sun Life at 11.0% [1] Market Trends - In July, both Hong Kong and US stock markets reached new highs, with US funds seeing a net inflow of HKD 1.3 billion [1] - Index-tracking Hong Kong funds recorded a net inflow of HKD 500 million, indicating a preference among investors for these funds over actively managed Hong Kong funds [1] Fund Performance - Conservative funds experienced a net outflow for the first time this year, amounting to approximately HKD 600 million, attributed to declining HIBOR rates and expectations of interest rate cuts [1]