Hong Kong's MPF net inflow soars to USD800m in March

The Mandatory Provident Fund net inflow hit a new high of HKD6.27bn (USD800m) in March, or about 48.8% higher than the monthly MPF net inflow average since the launch of Tax Deductible Voluntary Contributions (TVC) in April 2019. Also, the net inflow in Q1 hit a new high of HKD15.29bn, or 200% higher than the historic average quarterly TVC level. MPF attributed the record inflows to surging TVC as MPF members rushed to take advantage of the tax break afforded by TVCs before the end of the tax year. MPF Ratings stated that despite the record net inflows, MPF's total assets fell to HKD1.121tr at the end of March, the lowest level since November 2020. The average account balance of the MPF's 4.6 million members fell by HKD1,900 to HKD244,400 in March.