Investment
MPF Members Gained HK$ 18,525 in 1st Half Year! HK$7.6 Billion Inflows into US, Asian and Japanese Equities | A Complete Breakdown of MPF Performance in 2026 |【GUM MPF Snapshot】
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2026-07-10
The GUM MPF Composite Index stood at 302.6 points, up 5.7% in the first half of 2026. Although MPF performance was disrupted by the sharp global stock market decline triggered by the US-Iran conflict in the first quarter, the market rebounded in the second quarter, bring overall performance back into positive territory. The average gain per person in Q2 was HK$25,014, while the year-to-date average gain stood at HK$18,525. GUM Strategy and Investment Analytics Director Martin breaks down the key factors behind MPF performance in the first half year.
The net switching amount for 2026 is projected to reach HK$66.7 billion (based on proportional extrapolation), which would mark a five-year high. Two key factors have been driving this trend:
1. Strong Market Returns Encourage Portfolio Reallocation
With MPF delivering solid returns in the first half of the year, many members actively reviewed their portfolios and shifted assets into better-performing funds to capture market opportunities and enhance long-term returns.
2. The eMPF Platform Makes Fund Switching Easier
The full migration of all MPF schemes onto the eMPF Platform has significantly simplified fund switching, scheme transfers and account management. Enhanced accessibility and lower administrative fees have encouraged members to take a more active role in managing their retirement savings.
Among all asset classes, Asian equity funds delivered the strongest performance in the first half of the year, returning 27.9%. This was mainly driven by robust demand for AI infrastructure, memory chips, and semiconductors, which drove strong gains in the stock markets if South Korea, Japan and Taiwan.
In contrast, Hong Kong stock funds (index-tracking) performed the weakest, the main reasons included slowing revenue from large-cap traditional tech and internet stocks in the Hang Seng Index, downward revisions in earnings forecasts, and a lack of exposure to AI infrastructure themes, which weighed on their performance.
High-Risk Investors: Focus on Global Diversification
While Asian equity funds have delivered exceptional performance, investors should be aware of the significant performance gaps among individual funds. Within the Asian equity fund, the performance gap between the best-performing and worst-performing funds reached 66.6%, largely reflecting differences allocations to Japan, South Korea and Taiwan. With performance gaps between some asset classes reaching as much as 108.9%.
Although geopolitical tensions remain volatile, current macroeconomic indicators do not point to an imminent global recession. As a result, higher-risk investors may consider allocating to global equity funds.
Conservative Investors: Monitor Interest Rate Trends
Global central banks are now discussing interest rate hikes. Europe and Japan have already taken the lead by raising rates in June, and the new Federal Reserve Chairman Kevin Warsh has also signaled concern over balance sheet reduction. Global monetary policy is expected to tighten in an orderly manner in the second half of the year. Investors seeking stability and lower volatility may consider allocating to conservative funds.
The first half of 2026 delivered strong results for MPF members. However, higher returns often come with higher volatility. The substantial performance differences between funds demonstrate that investment outcomes depend not only on market direction but also on fund selection and portfolio allocation strategy. Investors should regularly review their MPF portfolios and ensure their asset allocation remains aligned with their risk tolerance, retirement objectives and long-term financial goals.
Looking for the latest MPF insights or a more effective retirement investment strategy? Contact the GUM team today and let our MPF specialists help you build a retirement portfolio tailored to your needs.
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