appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Enoch Yiu

Hong Kong’s Mandatory Provident Fund (MPF) recorded its first decline in assets in nearly a year in March, snapping a 10-month run of growth as investment losses weighed on the compulsory retirement scheme covering 4.8 million members.
Total MPF assets fell to HK$1.532 trillion (US$196 billion) at the end of March, down HK$99.2 billion, or 6 per cent, from a record HK$1.63 trillion a month earlier, according to MPF Ratings, an independent consultancy tracking the system’s performance.
Assets were also HK$21.8 billion lower than at the end of last year, reflecting a combination of investment losses and ongoing member contributions.
On average, each MPF member saw their pension savings shrink by HK$20,071 in March, or HK$4,556 over the first quarter, to HK$319,561, MPF Ratings said.
“After recording a 10th consecutive month of asset growth in February, the MPF system saw almost half of its 2025 annual investment gain erased in March, logging a monthly investment loss of around HK$102 billion,” said Francis Chung, chairman of MPF Ratings.
“This significant loss was not the fault of the MPF system,” he added, pointing to geopolitical tensions in the Middle East that had unsettled markets, pushed up energy prices and heightened economic uncertainty. “For the MPF’s 4.8 million members, the consequence has been an erosion of retirement wealth.”
The scheme’s 378 investment funds posted an average loss of 6.27 per cent in March, the steepest decline since September 2022, when losses reached 7.87 per cent.
The sharp drop wiped out gains from the first two months of the year, leaving the MPF with a 2 per cent investment loss for the first quarter – its first quarterly decline since the third quarter of 2022.
Money market funds, which invest mainly in bank deposits, were the only category to post gains in March, rising 0.15 per cent. All other fund categories recorded losses, MPF Ratings data showed.

Asian equity funds were the worst performers, falling 13.2 per cent in March, followed by Japanese equity funds, down 12 per cent, and European equity funds, which lost 9.8 per cent.
On a quarterly basis, yuan bond funds were the best performers, gaining 1.7 per cent, followed by money market funds, up 1.4 per cent, and Hong Kong dollar bond funds, which rose 0.7 per cent, according to MPF Ratings.
US equity funds were the weakest over the quarter, falling 5.2 per cent, including a 5.1 per cent drop in March.
Hong Kong and mainland China equity funds – the most popular choice among MPF members, accounting for more than one-third of total assets – fell 3.4 per cent in the first quarter and 8.3 per cent in March.
Mixed-asset funds, which invest in both equities and bonds, posted an average loss of 1.9 per cent in the first quarter and 7.9 per cent in March.
The default investment strategy (DIS) fund – a type of mixed-asset fund that automatically switches investments between stocks and bonds based on age-based risk profiles – also reported a loss.
The higher-equity DIS fund fell 1.8 per cent in the first quarter and 5.3 per cent in March, while the more conservative version, with a higher bond allocation, lost 0.9 per cent and 3.2 per cent, respectively.
Despite the setback, some analysts see scope for recovery.
“There is news about the possibility of an end to the war, which is a positive signal for MPF investment,” said Kenrick Chung, chief corporate solutions officer at Bay Insurance Brokers. “Members should take a long-term approach.”
Hong Kong stocks rebounded on Wednesday alongside broader gains in Asia after oil prices dropped on news of a two-week ceasefire between the US and Iran. The Hang Seng Index rose 3.1 per cent to 25,893.02 at the close, following a three-day holiday break.


Mainland Chinese tax drive flags Hong Kong MPF accounts as offshore trusts

Expand Hong Kong’s MPF investment choices, lure mainland pension funds: financial council

Advocacy group urges Hong Kong to let residents tap pension savings for homes

Rule change urged for Hong Kong pension fund to allow wider ETF choice for 4.8m members

Mandatory Provident Fund (MPF)

MPF’s 10-month rally runs out of steam as assets drop 6 per cent in March

Total MPF assets fell to HK$1.532 trillion (US$196 billion) at the end of March, down HK$99.2 billion. Photo: Handout

The scheme’s 378 investment funds posted an average loss of 6.27 per cent in March, the steepest decline since September 2022. Photo: Edmond So

Hong Kong’s MPF set to report worst performance in 3 years in March

The MPF’s March performance is expected to make for poor reading for the scheme’s 4.8 million members. Photo: May Tse

The MPF investment funds reported an average net return of 16.5 per cent in 2025, the third consecutive year the scheme returned an annual gain. Photo: Edmond So

Hong Kong’s eMPF to cut fees by 21.6% from April, saving US$6.4 billion in 10 years

Some 4.8 million MPF scheme members will benefit from the fee cut. Photo: Sun Yeung

The eMPF serves as a centralised platform replacing the separate systems used by the MPF’s 12 trustees. Photo: Handout

Wealthy investors’ policy purchases propel Hong Kong life insurance sales to another peak

An insurance sales agent approaches mainland tourists in Canton Road, Tsim Sha Tsui. Photo: Eugene Lee

Patrick Graham, CEO of Manulife Hong Kong and Macau. Photo: Xiaomei Chen

Business

Average pension savings fell HK$20,071 in March, leaving members HK$4,556 lower for the quarter


Average pension savings fell HK$20,071 in March, leaving members HK$4,556 lower for the quarter.


MPF’s 10-month rally runs out of steam as assets drop 6 per cent in March

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Average pension savings fell HK$20,071 in March, leaving members HK$4,556 lower for the quarter

Average pension savings fell HK$20,071 in March, leaving members HK$4,556 lower for the quarter