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Enoch Yiu

Hong Kong’s Mandatory Provident Fund (MPF), the city’s compulsory retirement scheme covering 4.8 million members, recorded a HK$24.4 billion (US$3.12 billion) loss in June, eroding the gains it made in the first half of this year to HK$88.8 billion.
On average, each MPF member saw their pension savings suffer an investment loss of HK$5,087 in June, but they still made gains of HK$18,500 over the first six months of 2026, according to data from independent research company MPF Ratings.
The monthly loss in June was lower than the loss of HK$20,071 in March, MPF Ratings said.
“According to the Chinese, ‘8’ is a lucky number. MPF has delivered HK$88.8 billion in investment gains in the first half of this year, which means more luck for members,” said Francis Chung, chairman of MPF Ratings.
Total MPF assets stood at HK$1.67 trillion (US$214 billion) at the end of June, up 7 per cent, or HK$112.1 billion from the end of last year, reflecting a combination of investment gains in the first half of this year and ongoing member contributions. On average, each member had HK$347,500 in their MPF balance by the end of June.
The scheme’s 378 investment funds posted an average loss of 1.45 per cent in June, compared with a loss of 6.27 per cent in March, which was the deepest decline since September 2022, when losses reached 7.87 per cent.
The sharp drops in March and June wiped out the gains made in the other four months of the year so far. However, the MPF’s first half-yearly return at 5.67 per cent was the sixth best first-half-year performance since the retirement scheme was launched in 2000.
However, Chung noted a wide performance gap across fund categories, with Hong Kong and mainland China equity funds performing weakly, while Asian stock funds were strong gainers due to the technology-heavy Korean and Taiwan markets.
Hong Kong and mainland China equity funds were the worst performers, falling 5.7 per cent in June and 1 per cent in the first half. This hurt many members as they were the most popular choice among MPF members, accounting for more than one-third of total assets.
The Hang Seng Index also fell 11 per cent in the first six months of 2026 because of worries over rising interest rates and corporate earnings.
This was followed by global bond funds, down 0.4 per cent in June and gaining 0.02 per cent in the first half, and Hong Kong dollar bond funds, down 0.2 per cent in June and also in the first half.
However, the MPF has a diversified investment approach that can benefit from growth in other markets. The S&P 500 rose 20 per cent, while the Nasdaq-100 jumped 10 per cent during the first six months this year as investors piled into artificial intelligence stocks.
Other equity funds were the best performers in June with a return of 5 per cent, followed by European equity funds at 1.54 per cent and yuan bond funds at 0.2 per cent, MPF Ratings data showed.
On a first-half-year basis, Asian equity funds were the best performers, gaining 27.9 per cent, followed by Japan equity funds, up 15.3 per cent, and global equity funds, up 11.9 per cent, according to MPF Ratings.
Mixed-asset funds, which invest in both equities and bonds, posted an average gain of 6.8 per cent in the first half of this year and lost 0.9 per cent in June, MPF Ratings data showed.
The default investment strategy (DIS) fund – a type of mixed-asset fund that automatically switches investments between stocks and bonds based on age-based risk profiles – also reported 7.6 per cent in the first six months with a 0.4 per cent loss in June.
The more conservative version of DIS with a higher bond allocation gained 2.8 per cent and 0.04 per cent, respectively, MPF Ratings data showed.
On Monday, the Mandatory Provident Fund Schemes Authority (MPFA) – the city’s pension regulator – urged members to take a long-term view of their MPF investments.
Since the establishment of the MPF in 2000 until June, equity funds made an average annual return of 5.1 per cent, while mixed asset funds had an annual gain of 4.8 per cent, both of which beat the average annual inflation rate of 1.8 per cent during the period, the MPFA said in a statement.
“MPFA reminds MPF scheme members that MPF is a long-term investment spanning more than 40 years,” the MPFA said, urging members against attempting to time the market and avoid a “buying high, selling low” scenario, which could hurt their MPF returns.


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On average, each MPF member saw a pension savings loss of HK$5,087 in June, but gained HK$18,500 in the first six months, according to MPF Ratings


On average, each MPF member saw a pension savings loss of HK$5,087 in June, but gained HK$18,500 in the first six months, according to MPF Ratings.


Mandatory Provident Fund (MPF)

Hong Kong

China

Hong Kong’s pension fund suffers a loss in June but reports first-half gains

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}On average, each MPF member saw a pension savings loss of HK$5,087 in June, but gained HK$18,500 in the first six months, according to MPF Ratings

On average, each MPF member saw a pension savings loss of HK$5,087 in June, but gained HK$18,500 in the first six months, according to MPF Ratings