Core Viewpoint - The overall return of Hong Kong's Mandatory Provident Fund (MPF) decreased by 0.5% in December, with an average loss of HKD 1,448 per person, despite a year-to-date increase of 15.6%, marking the highest return in nearly eight years [1] Group 1: Performance of Fund Indices - The three main indices showed varied performance: the stock fund index fell by 0.8%, the mixed asset fund index decreased by 0.2%, while the fixed income fund index slightly increased by 0.03% [1] - Year-to-date, the MPF composite index has gained 15.6%, translating to an average profit of HKD 42,685 per person [1] Group 2: Sector Performance - In December, stock funds faced pressure, with European stock funds being the best performers, rising by 2.3% and achieving an annual return of 23.8% [1] - Conversely, other stock funds experienced a decline of 2.2% in December but still recorded a 17.1% increase for the year [1] - Hong Kong and Greater China stock funds saw slight declines of 1% and 0.9% in December, respectively, yet maintained significant annual gains of 29.2% and 30.8% [1] Group 3: Investment Strategy - Despite the market adjustment in December, the MPF has recorded positive returns year-to-date, prompting members to review their asset allocation strategies based on their risk tolerance to balance short-term volatility with long-term growth potential [1]

Core Insights - The Mandatory Provident Fund (MPF) is expected to record a positive monthly return of 1.3% in August, leading to a year-to-date return of approximately 11.56%, marking the best performance for the first eight months since 2017 [1] - The anticipated investment gains for August are around HKD 18.8 billion, translating to an average profit of about HKD 3,930 per MPF member, with total investment returns since the beginning of 2025 projected to reach approximately HKD 151 billion [1] - Hong Kong and mainland stock funds have led the performance year-to-date with an increase of about 25.94%, while the positive return in August is primarily driven by Japanese stock funds, which have risen approximately 5.23% [1] Asset Growth - The total assets of the MPF are expected to reach a historical high of approximately HKD 1.47 trillion by the end of August, marking the fourth consecutive month of record highs, with an increase of about HKD 21.82 billion from July [1] - The average account balance per member is projected to be around HKD 306,700, which is an increase of about HKD 4,552 from July and a cumulative increase of approximately HKD 37,417 since the beginning of 2025 [1] Market Sentiment - The chairman of MPF Ratings, Cong Chuanpu, indicated that the first eight months of this year represent the best performance for the MPF in the past eight years, suggesting that members may start to demand new fund products to maintain this positive momentum [1]