MPF scheme prospers despite HK, China equity rout

Members of Hong Kong's Mandatory Provident Fund (MPF) scheme each gained an average of HKD6,900 in H1 2023, despite Hong Kong and China equity funds underperforming, as reported by MPF Ratings. US equity funds were the top performers, resulting in the largest half-year variance since the scheme's inception. The total assets in the MPF reached HKD1.112tr at the end of June. The average MPF account balance reached HKD236,800, a rise of HKD12,900 since the year's start. Francis Chung, Chairman of MPF Ratings, commented that gains could have been higher if local equities had sustained their early 2023 momentum. Separately, Schroders adopted a neutral stance on global equities, citing reduced short-term risks to corporate earnings.