MPF sees HKD190.7bn in investment losses in 2022

Hong Kong's Mandatory Provident Fund (MPF) may end this year with investment losses of 16.15% or HKD190.7bn, amid falls in US and global stock markets this month. After factoring in Hong Kong’s pension fund contributions this month, December average member account balances are expected to increase modestly to about HKD228,600, translating to an estimated annual decline of HKD29,000. Total assets could reduce 11.5% yearly to about HKD1.05tr at the end of this year, as the market is likely to remain quiet over the festive season. The MPF Rating said HK/China equities, the MPF's largest asset class, is on track to produce a second consecutive month of good performance this year, giving it momentum going into 2023. However, over the year, HK/China and US equities are expected to be amongst the MPF's worst-performing 2022 asset classes with losses of 20% each.