Core Insights - The total assets of the Mandatory Provident Fund (MPF) in Hong Kong have surpassed HKD 1.5 trillion, reaching a temporary figure of HKD 1.53 trillion as of September 2025, marking a significant milestone for the MPF system [1] - The increase in total assets this year includes over HKD 200 billion attributed to net investment returns, indicating strong performance in the accumulation of retirement savings [1] - The average net returns for stock funds and mixed asset funds over the past 12 months were 18.8% and 10.6%, respectively, with long-term annualized net returns since the MPF's inception at 5.1% and 4.5% [1] Investment Strategy Performance - The Default Investment Strategy (DIS), known as the "lazy fund," has shown an average net return of 9.8% over the past 12 months and an annualized net return of 6.8% since its launch in 2017 [2] - Both the DIS and other fund types have outperformed the annualized inflation rate of 1.8% since the implementation of the MPF system and the introduction of DIS [2]

Group 1 - The Hong Kong government is cautious about allowing citizens to withdraw Mandatory Provident Fund (MPF) contributions for first-time home purchases, as it may undermine the integrity of the MPF system and its purpose of providing retirement savings [1][2] - The MPF is designed as a long-term investment to accumulate value over a member's working life, and early withdrawals could lead to a loss of accumulated benefits [1][2] - The Financial Secretary emphasizes the need for careful evaluation of the impact on retirement savings if members are allowed to withdraw MPF contributions for property purchases [2] Group 2 - The current mandatory contribution rate for MPF in Hong Kong is relatively low compared to other countries, and relaxing withdrawal requirements may hinder the MPF's ability to provide basic retirement protection [2] - Real estate investment carries higher risks than MPF fund investments, and using MPF for property purchases could diminish the advantage of risk diversification within the MPF system [2] - The demand for the Elderly Mortgage Scheme has increased since its launch in 2011, with over 8,200 applications approved as of April this year, and the number of approvals in 2024 has risen by approximately 30% year-on-year [2]