Hong Kong's Mandatory Provident Fund (MPF) has reported impressive earnings of HK$148.8 billion (approximately US$19 billion) in the first nine months of 2024, marking the best performance in seven years. Each MPF member has benefited from an average gain of HK$31,300, bringing the total assets of the MPF to a record HK$1.327 trillion. The MPF's 379 investment funds have generated an average return of 12.8% year-to-date, with Hong Kong and China equity funds leading the way with a remarkable return of 23.6%, including a notable 18% increase in September alone. This surge in performance coincided with the Hang Seng Index rising 18% in September, its best month since November 2022 [eacf0e2a].
Several factors have contributed to this robust performance. On September 18, 2024, the US Federal Reserve cut interest rates by 50 basis points, which has had a ripple effect on global markets. Additionally, Beijing announced a series of stimulus measures on September 24, 2024, aimed at bolstering the economy, which has positively influenced investor sentiment in Hong Kong. As a result, the average account balance within the MPF now exceeds HK$279,100, reflecting the growing wealth of its 4.75 million members [eacf0e2a].
The MPF, established in 2000, serves as a crucial retirement savings scheme for workers in Hong Kong, and the recent market rally has significantly enhanced its value. The combination of favorable market conditions and strategic monetary policy has positioned the MPF as a strong performer in the financial landscape [eacf0e2a].