MPF members lost HKD56,500 each at end September

The Mandatory Provident Fund (MPF) incurred a loss of HKD258.9bn (USD32.98bn) in the first nine months of the year. That equates to a loss of HKD56,500 on average per member. However, analysts expect Hong Kong’s compulsory retirement scheme covering 4.6 million employees to bounce back in the last quarter. In September alone the MPF shed HKD82.1bn, bringing the third-quarter loss to HKD106.2bn. Kenny Ng Lai-yin, a strategist at Everbright Securities International, said that the market may rebound in the fourth quarter when global inflation reaches a high and the mainland economy recovers, however, it will be difficult to recover all the losses from the first nine months, so 2022 will probably record a loss still. The MPF’s returns to pensioners have been diminishing for the past four years.