Hong Kong’s MPF set to report worst performance in 3 years in March

Hong Kong’s Mandatory Provident Fund (MPF) is poised to report a loss of over HK$100 billion (US$12.8 billion) for March this week, its worst monthly loss in dollar terms since its inception 25 years ago.

The sharp fall in global stock markets last month hit the MPF hard, while the uncertainties ahead stemming from the Middle East conflict have led the pension regulator and analysts to urge the 4.8 million members to adopt a diversified approach.

The 378 MPF investment funds suffered a HK$103.3 billion loss in the first three weeks of last month, according to MPF Ratings, an independent pension research firm. On average, each member lost HK$21,542 during the same period.

The funds posted a loss of 6.33 per cent in the first three weeks of March, the worst since September 2022, when they lost 7.87 per cent, according to data from MPF Ratings.

Francis Chung, the chairman of MPF Ratings, said he expected the pension fund’s full-month loss to exceed HK$100 billion, the largest monthly loss since the compulsory retirement scheme was launched in December 2000.

“Because of the war in the Middle East, the global capital markets in March fluctuated a lot, which negatively affected the MPF’s performance,” said Kenrick Chung, chief corporate solutions officer at Bay Insurance Brokers in Hong Kong.