In 2025, the GUM MPF Index closed at 286.4 points, up 16.7%, with average members gaining over HK$45,000—the strongest performance in 8 years! Driven by robust equity markets, GUM Chief Investment Officer Christopher reviews the year’s highlights and shares our 2026 outlook!

Why 2025 MPF Returns More Than Doubled from 2024?

Global equity markets in 2025 were boosted by the AI boom and interest rate cut expectations, delivering solid performance across major regions, with China and Hong Kong stocks standing out particularly strongly. Trade tensions also eased significantly: the US signed trade agreements with the EU, Japan, South Korea, Indonesia and Vietnam, while China and the US reached a “trade truce” at the APEC summit, greatly reducing market uncertainty.

Another standout was the Japanese market repeatedly hitting record highs, with the Nikkei breaking through 50,000 points. After Sanae Takaichi became Prime Minister, investors anticipated an “Abenomics 2.0” era, supported by expectations of continued loose monetary and fiscal policies, driving strong performance in Japanese equities throughout the year.

Top-Performing MPF Equity Category and Schemes in 2025

The standout was the Greater China Equity Fund category, returning 33.7%. Benefits came from global AI enthusiasm, China’s cost-effective DeepSeek AI models, and attractive valuations – the Hang Seng Index P/E was only 12.8 times and the CSI 300 stood at 18.2 times, compared with over 20 times for the S&P 500.

Within the Greater China Equity Fund category, the top three performing schemes and funds were:

1. Manulife Global Select (MPF) Scheme — Manulife MPF China Value Fund: 37.1% return
2. BCOM Joyful Retirement MPF Scheme — BCOM Greater China Equity (CF) Fund: 37.0% return
3. Manulife RetireChoice (MPF) Scheme — Allianz Greater China Fund (Class A): 36.8% return

The top three were separated by just 0.3 percentage points – showing how fiercely competitive the field was.

Can China-HK Momentum Continue in 2026? Any Other Options?

GUM remains positive on China-Hong Kong equities for Q1 2026, supported by low valuations, expected AI-driven earnings growth, and potential capital inflows as the US dollar softens in the rate-cutting cycle.

For diversification, Global Equity Funds (18.7% return in 2025) remain attractive, with ongoing AI and rate-cut tailwinds plus steady growth expected in Europe and Japan.

In Summary

2025 was a bumper year for MPF members. Heading into 2026, equity markets still offer plenty of opportunities, but risk management is key—regularly review your portfolio and align with your risk tolerance.

Ready for a tailored 2026 MPF strategy? Contact GUM’s experts today to build a plan that keeps your retirement savings growing steadily.